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I'm a little bit confused about this, it seems that if the works are public domain, surely some kind soul would walk into the gallery and take some snaps of the works, putting the gallery out of the loop.
The gallery is obviously trying to look after their self-interest and doing so in a way that hurts the flow of information and knowledge on the Internet (something you wouldn't think a gallery would do). Probably an economic rationalist running the gallery who has decided that the collection of revenue for the gallery trumps the free sharing of art online.
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