Ninth Circuit Hearing on California Resale Royalties

Readers will recall that in 2012 the U.S. District Court struck down the California Resale Royalties Act, holding that the 1970s-era law violated the Commerce Clause of the U.S. Constitution.

The Ninth Circuit Court of Appeals held arguments this Tuesday on an appeal brought by the plaintiffs (certain artists and artists’ foundations) who filed the lawsuit in 2011. Commentators present at Tuesday’s hearing noted that the three-judge panel (Judge Ferdinand Fernandez, Judge Mary Murguia, Judge Randy Smith) seemed inclined to uphold the District Court ruling in favor of defendants eBay, Sotheby’s and Christie’s.

A ruling is expected soon.

(For more information on this litigation and the statute, see our posts dated May 21, 2012 and October 26, 2011.)