A federal jury in Manhattan has ordered Michael McKenzie and his company American Image Art to pay $102 million (€95 million) to the Morgan Art Foundation for unauthorized exploitation of works by artist Robert Indiana (1928-2018), including his iconic LOVE image. The case, filed in May 2018 just before Indiana's death, alleged that McKenzie—a former agent of the artist—produced and sold unauthorized editions, sculptures, and merchandise under Indiana's name, violating exclusive reproduction and commercialization rights granted to the foundation in the 1990s. The jury found McKenzie guilty of trademark infringement, copyright violation, and contractual interference, with $6.2 million specifically tied to 44 LOVE works. The defense, weakened by sanctions for hiding evidence and refusing to cooperate, plans to appeal.
This verdict matters because it reinforces the legal protections around artists' estates and the commercial rights granted to foundations, particularly in high-stakes cases involving iconic works like LOVE. The ruling may deter unauthorized reproduction and bolster confidence in the market for Robert Indiana's work, which has been plagued by disputes among partners and heirs. It also highlights the risks of evidence tampering in art litigation, as McKenzie was sanctioned for concealing thousands of documents and moving 2,500 works without court notice. The decision could set a precedent for how courts handle conflicts between commercial foundations and former representatives of deceased artists.