PleasrDAO, a decentralized autonomous organization that acquires digital and unique art on behalf of its members, has filed a preliminary injunction seeking to prevent Martin Shkreli from sharing or disseminating the one-of-a-kind musical album Once Upon a Time in Shaolin by Wu-Tang Clan.
Legal counsel for the DAO argued that Shkreli demonstrated “irreparable harm” — a legal term for damage that cannot be remedied through monetary means— by copying the album and streaming it during a X Spaces event on June 9, 2024. The motion for a preliminary injunction stated:
“The Album is a singular, unique work of art that was not to be broadcast, copied, or exploited, except by its owner, under very narrow circumstances. The value of the Album depends almost entirely on its uniqueness and the secrecy that surrounds it. Shkreli knows this.”
The filing continued by explaining that Shkreli forfeited “all rights, title, and interest” to the Wu-Tang album when he was forced to surrender it to United States law enforcement officials in 2018 following his conviction for securities fraud.
PleasrDAO motion for preliminary injunction. Source: Reed Smith LLP
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PleasrDAO’s legal filing also cited the 88-year restrictions Shkreli agreed to with Wu-Tang Clan in the original 2015 purchase agreement, preventing him from disseminating the album except in narrow circumstances allowed under the “permitted use” clause.
The DAO’s argument hinges on showing that streaming the album in a social media forum constituted a breach of the original purchase agreement by playing the album at a large venue that is not an art museum, art gallery, or limited forms of private and public exhibitions.
PleasrDAO claims Shkreli was aware of the details in the original purchase agreement
Moreover, the court documents accused Shkreli of being fully aware of the terms and honoring them during a previous, similar situation. The documents quoted Shkreli’s comments during a 2016…
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