American investor and former pharmaceutical executive Martin Shkreli has asked a Brooklyn federal court to dismiss claims against him by the NFT collective PleasrDAO over the ownership of a rare recording by the legendary hip-hop group Wu-Tang Clan.
The Wu-Tang Factor
Shkreli’s January 6 filing wants the NFT group’s complaints against him thrown out as they are “preempted by the Copyright Act.” If the case should go on, then the ex-convict wants two members of the Wu-Tang Clan, Robert Diggs, also known as The RZA, and Tarik Azzougarh, who goes by Cilvaringz, to be included in the proceedings because they co-own the album. Shkreli initially purchased the secretive project in 2015 for $2 million at a private auction. Only one copy was made under a contract whose terms prevented the album’s public release until 2103. However, authorities seized the recording in 2018 following the pharma executive’s arrest after accusations of cheating investors and engaging in a stock fraud scheme with his company, Retrophin Inc.
Fight Over Music Ownership
On June 10, 2024, PleasrDAO sued Shkreli, alleging that his actions had caused the collective significant monetary harm, decreasing the album’s marketability and value. While the investor claims his initial purchase agreement allowed him to keep 50% of the copyright even if he sold the actual physical album, PleasrDAO has insisted that their purchase included an agreement where he forfeited all his rights, titles, and interests. In August, a New York judge ordered the former drug firm executive to turn over all copies he’d made of the 31-track album and sign an affidavit affirming that he no longer had any in his possession. However, the group expressed worries that Shkreli had not handed over all the copies and asked the judge for a deeper search.
Recent Developments on Shkreli
The ex-convict recently made headlines after claiming to be the co-creator of a Donald Trump-themed meme coin, DJT, whose authenticity had been questioned amidst accusations of insider trading.
The situation with the Wu-Tang Clan album and Martin Shkreli's involvement continues to attract public and judicial attention. The outcome of the case may significantly impact the NFT market and intellectual property rights.
