To prohibit it from auctioning off rights to a Jay-Z record as an NFT, Roc-A-Fella Records Inc. received a temporary restricting order against its co-founder.
The Judge ordered Roc-A-Fella to the New York court to sell copyright on the debut album “Reasonable Doubt” as an NFT connected with Damon Dash’s attempts.
The label, controlled by Jay-Z, Kareem Burke, and Damon Dash in thirds, sued Dash for trying to sell, saying that he did not have the rights to the auction through the token sale. The petition before the court says that it is the album’s label that seeks to restrict Dash’s temporary selling of sales rights.
Earlier this week, district judge John P.Cronan of New York approved the retention order until 1 July, when Dash is anticipated to present a hearing with evidence as to why it should be permitted to proceed with the proposed sale.
The issue was “simple,” Roc-A-Fella said, and Dash did not have the right to sell what he said would be a token, which he called a violation of fiduciary obligations.
“An individual shareholder, like Dash, does not own the corporation’s assets — only the corporation does — and an individual shareholder cannot sell, transfer, or otherwise encumber a corporate asset. The bottom line is simple: Dash can’t sell what he doesn’t own. By attempting such a sale, Dash has converted a corporate asset and has breached his fiduciary duties.”
Roc-A-Fella defined Reasonable Doubt as to his “precious asset,” stating that if the court had not intervened, Dash would inevitably sell him, he would.
The Judge found that Dash is prohibited from altering any property interest in Reasonable Doubt, including its copyright, and included, by any means, such as auctioning an NFT that reflects such interests, in any way by the sale assignment and obligation, liability, and contract.