As a result of JAY-‘s comments, the City, represented by the New York City Department of Social Services (NYCDSS), has requested a pre-motion meeting and suspended the auction of Damon Dash’s stock interest in Roc-A-Fella Records.
The request was filed before U.S. Magistrate Judge Robert W. Lehrburger amid allegations that JAY-Z made public statements designed to devalue the stock and deter potential bidders.
The city argued that JAY-Z’s claim to have the right to terminate RAF’s copyright to his album “Reasonable Doubt” was false and seriously affected the auction’s potential to generate sufficient funds.
According to Gerald E. Singleton, the attorney representing New York City, JAY-Z has publicly stated that the right of reasonable doubt will be returned to him in 2031, but Singleton claims that this One statement is untrue.
“JAY-Z has made widely public statements warning potential bidders that copyright ownership will revert to him in 2031,” Singleton wrote in a letter to Judge Lehrberg. “These statements are false and significantly undermine the City’s interest in ensuring that the auction will generate sufficient funds to repay all existing child support arrears and secure future child support payments.”
The city argued that JAY-a had no right of termination under the Copyright Act because “Reasonable Doubt” was considered a “work for hire.”
The 1995 agreement between JAY-Z and Roc-A-Fella specified that all masters recorded under the contract were considered “works made for hire” and granted RAF copyright until 2098.
In addition to JAY-Z’s statement, Roc-A-Fella’s attorneys are accused of refusing to provide important royalty information in response to a subpoena. This information is considered crucial for potential bidders to accurately evaluate the shares.
The city said it may file a motion for a writ of surrender against Roc-A-Fella and its controlled affiliates to compel disclosure of this information.
“The auction should be conducted in a manner that will yield the highest price for the benefit of the affected judgment creditors,” Singleton stressed. He cited previous court rulings that public auction sales should be conducted in circumstances that calculated the highest possible price. conduct.
The city is seeking to halt the auction until a court can rule on whether JAY-Z has the authority to terminate RAF’s copyright and whether discovery should be allowed for the evaluation of such copyright.
The city also seeks an order compelling Roc-A-Fella to provide necessary royalty information and provide a knowledgeable person to testify.
Damon Dash recently posted a comment about JAY-Z on Instagram.
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Damon Dash is trying to auction off his 33.3% stake in Roc-A-Fella Records after losing his legal battle with movie producer Josh Webber over the movie Dear Frank shares to repay $823,000 of debt.
A New York court ordered the film to be sold to pay off debts, and Dash allegedly tried to sell the film under a different title after being removed from the director’s chair due to his antics on set.
The auction was originally scheduled for August 29, with a starting bid of $1.2 million and a $240,000 deposit required.
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Because Damon Dash owed money to multiple parties, Lebrugg granted the request for an extension. Dash is also offering the original Roc-A-Fella chain as an incentive for bids exceeding $10 million. The buyer’s decision-making power is limited because major decisions require a majority vote.
If the auction exceeds $10 million, the remaining money will be donated to the state of New York to pay off Damon Dash’s $8 million tax bill and other debts.
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