A bipartisan plan to stop indigenous art fraud has stuttered to a halt, with Arts Minister George Brandis failing to meet the federally funded body behind it.

The Indigenous Art Code's chairman Ron Merkel, QC, this week wrote Senator Brandis an open letter, questioning his understanding of indigenous artists' problems, given his controversial plans to reform the Racial Discrimination Act.

Artist Maree Clarke says those who copy art onto carpets and tea towels are stealing from artists. Credit:Angela Wylie

Mr Merkel said in the letter the minister had spent a "great deal" of time on his exposure draft, which he had explained "to be based in part on the right of people to be bigots, thereby embracing their right to engage in the public vilification of, among others, Aboriginal people on the ground of their race".

"If that endeavour means you have no time to consider protecting Aboriginal or other indigenous artists from continuing exploitation ... it may be appropriate for this important project to be handed over to the indigenous affairs section of the Department of Prime Minister [Tony Abbott] and Cabinet."