| Roc-A-Fella
Gets TRO to Stop Damon
Dash From Selling
Jay-Z's Reasonable Doubt
Via NFT
By Matthew
Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY COURTHOUSE,
June 21 – Roc-A-Fella
Records on June 18 filed a
lawsuit against Damon Dash, to
try to enjoin him from selling
the copyright to Jay-Z's debut
album Reasonable
Doubt. Photo here.
Order to Show Cause on Patreon
here.
Now on June 21,
Roc-A-Fella Records has argued
for and won a Temporary
Restraining Order, in a
proceeding before U.S.
District Court for the
Southern District of New York
Judge John P. Cronan in which
Dash did not show up. Inner
City Press live tweeted it here,
podcast here:
Now Roc-a-Fella
vs Damon Dash (except he has
not shown up), hearing on
Friday's request for an
injunction against selling
Jay-Z's "Reasonable Doubt"
including via NFT
Roc-a-Fella's
lawyer: Damon Dash cannot sell
what he does not own. But the
NFT auction was scheduled for
tomorrow. It would be hard to
collect money in the future
from Mr. Dash - so we should
get a stay. Conversion has
already occurred.
Roc-a-Fella's
lawyer: We wrote to Mr. Dash
but he did not stop. This is
like art or jewelry, it's
unique. There would be no
unringing the bell if we don't
stop him today. A stay would
protect the public. This is a
new technology.
Judge
Cronan: Tell me more about
what NFTs are. If Mr. Dash
does not own the copyright,
who can he mint the NFT?
Roc-a-Fella's
lawyer: Minting it, or putting
it on the blockchain, allows
anyone with crypto-currency to
enter the auction and buy it.
Roc-a-Fella's
lawyer: It's not like the art
world, where has centuries of
experience in trying to stop
fraud. We saw Dash's press
release, it proves he was
trying to sell something he
doesn't own.
Roc-a-Fella's
lawyer: Dash said he hoped to
earn $30 million from this.
Once it goes on the
blockchain, anyone could claim
they have title. We could have
an international legal issue
on our hands.
Roc-A-Fella's
lawyer: There would a lot
royalty streams, almost
impossible to measure. In
WPIX, Inc., the court said as
much. Also, the Los Angeles
Dodgers broadcasting case -
impossible to quantify.
Judge
Cronan: Has Mr. Dash been
served with this?
Roc-A-Fella's
lawyer: We've dealt with two
lawyers, and we've served Mr.
Dash as well. Judge Cronan:
Including my order scheduling
today's conference?
Roc-A-Fella's lawyer: Yes.
Judge Cronan: I
will grant the application for
a Temporary Restraining Order.
The 2d Circuit standard has
been met. Roc-A-Fella Records
has shown a likelihood of
success, based on the
declaration from Mr. Carter
and the contract.
Judge
Cronan: The records shows that
Mr. Dash minted an NFT and was
prepared to try to auction
it.... There's the breach of
fiduciary duty cause of
action...
Judge
Cronan: With respect to unjust
enrichment, Dash would be
unreasonably enriched. He is
only a partial owner of
Roc-A-Fella Records. He cannot
sell "Reasonable Doubt." There
would be irreparable injury if
a TRO does not issue. It's a
unique asset.
Judge
Cronan: It's similar to the
WPIX broadcasting rights case,
although this is a newer
technology, a "burgeoning new
marketplace," in the
plaintiff's language. Now,
should the plaintiff post a
bond? Roc-A-Fella's lawyer: We
don't think it's necessary.
Judge Cronan: The
next hearing is July 1. Any
opposition is due June 25,
reply June 29. I'd like to do
the fact hearing in person.
Since you're the only party
for now, what's your view?
Roc-A-Fella's
lawyer: If we get opposition,
then in person makes sense.
Judge Cronan: I
look forward to receiving any
further submission. We'll be
back together on July 1st. We
are adjourned.
The Complaint
says Dash "had planned to sell
[it] at a SuperFarm Foundation
online auction on June 23,
2021."
With
that auction now canceled, the
complaint continues, "Dash is
currently frantically scouting
for another venue to make the
sale."
The
accompanying draft Order to
Show Cause would, if signed,
enjoy Dash from "altering in
any way, selling, assigning,
pledging, encumbering,
contracting with regard to, or
in any way disposing of any
property interest in
Reasonable Doubt, including
its copyright and including
through any means, such as
auctioning a non-fungible
token ('NFT') reflecting such
an interest."
The
complaint notes that during
the past year, the market for
NFTs has exploded.
Now, this
lawsuit, which Inner City
Press will continue to follow.
Watch this site.
***
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