Martin Shkreli Wu-Tang Clan Album Lawsuit Moves Forward
Background of the Martin Shkreli Wu-Tang Clan Album Dispute
A federal judge has ruled former pharmaceutical executive Martin Shkreli can be sued for allegedly copying and distributing Wu-Tang Clan’s one-of-a-kind album, “Once Upon a Time in Shaolin.” The decision, issued Thursday by U.S. District Judge Pamela Chen, allows digital art collective PleasrDAO to pursue claims against Shkreli for trade secret misappropriation and property recovery. The case centers on whether Shkreli lawfully retained and shared digital copies of the album after authorities seized it in 2018 to partially satisfy a $7.36 million judgment related to securities fraud.
PleasrDAO’s Claims and Court Ruling
PleasrDAO, which acquired both the unique physical album and its copyrights, accuses Shkreli of streaming tracks online and offering to share files after forfeiting the album. The group previously secured a temporary restraining order in June 2023 that barred Shkreli from using, disseminating, or streaming the album. Judge Chen wrote that Shkreli “unlawfully retained and distributed copies” of the Wu-Tang Clan album, according to court documents. The ruling permits PleasrDAO to seek damages, any profits, and the return of copies allegedly still in Shkreli’s possession. However, some claims were dismissed on copyright preemption grounds. Reporting via Decrypt.
Legal and Cultural Significance
The case is notable because the court treated the unreleased hip-hop album as a potential trade secret, a category usually reserved for confidential business information. Ishita Sharma, managing partner at Fathom Legal, told Decrypt the decision is “remarkable because the court treated an unreleased hip-hop album as a potential trade secret—something usually reserved for recipes or corporate know-how.” Sharma added that the court’s recognition of “secrecy and exclusivity” in cultural assets highlights important legal protections for unique collectibles. Wu-Tang Clan originally produced a single copy of the album, recording 31 tracks between 2007 and 2013 as a commentary on the value of music in the digital era. The original sale in 2015 included 50% of the copyrights and restricted usage for 88 years.
What’s Next in the Martin Shkreli Wu-Tang Clan Album Lawsuit
After Shkreli’s criminal conviction and the album’s seizure, the U.S. Marshals Service sold “Once Upon a Time in Shaolin” in July 2021 for over $2 million to PleasrDAO. The DAO later obtained full copyright ownership in January 2024. PleasrDAO filed suit in June 2024 following Shkreli’s public comments and alleged livestreams featuring the album. Shkreli has argued that Wu-Tang members Robert “RZA” Diggs and producer Tarik “Cilvaringz” Azzougarh should be joined to the case due to their copyright interests. The case now moves forward on the trade secret and property recovery fronts, with broader implications for digital ownership and exclusivity in rare music assets. Learn more about similar digital assets and their legal challenges on our cryptocurrency coverage.
