PleasrDAO Sues Martin Shkreli Over Wu-Tang Clan Album Rights
PleasrDAO, a highly crypto-native organization, has turned to a traditional method to resolve a dispute: a lawsuit. On June 11, the DAO sued convicted felon Martin Shkreli for allegedly breaking intellectual property rights related to the "Once Upon a Time in Shaolin" album by Wu-Tang Clan.
The Lawsuit and Its Implications
PleasrDAO, known for paying $4.7 million for the exclusive rights to the unique album, claims that Shkreli made unauthorized copies and publicly released them. This lawsuit underscores the need for decentralized organizations to establish legal frameworks for their operations.
Adam Miller, CEO and Co-founder of MIDAO, an organization helping DAOs incorporate legally, notes that this lawsuit could lead to a more mature DAO ecosystem. He emphasizes that legal entities are not inherently anti-crypto and can be beneficial.
Who is PleasrDAO?
PleasrDAO is a community of DeFi traders, early NFT collectors, and digital artists. Since 2021, they have been collecting unique NFTs. Legally established as an “exempted foundation company," their lawsuit against Shkreli is a significant move.
The Album in Question
"Once Upon a Time in Shaolin" is a one-of-a-kind album by Wu-Tang Clan. It had only one individual copy, which was not listened to until Shkreli allegedly played parts of it during a livestream on June 8-9. This event, called the “Wu-Tang official listening party,” came just days before PleasrDAO's planned public listening on June 8 in NYC.
Reactions and Legal Framework
While some in the crypto community criticized PleasrDAO's legal action, figures like Uniswap founder Hayden Adams supported it, emphasizing that PleasrDAO is a member-owned museum protecting its intellectual property rights.
Legal Recognition of DAOs
Adam Miller's work with the Marshall Islands, one of the few places recognizing legal DAO structures, is noteworthy. Wyoming in the U.S. also recognizes DAOs, alongside other states like Utah, Vermont, and Tennessee.
Efforts for legal certainty in decentralized economies are ongoing. For example, Kleros is an open-source online dispute resolution protocol using blockchain and crowdsourcing. Other DAOs, like Aragon, have also taken legal action.
Future of DAOs and Legal Recourse
Francisco Díaz, a researcher at TalentDAO, highlights the importance of legal recourse, particularly in Decentralized Science (DeSci). For DAOs to impact outside the digital realm, they need offchain entities to handle legal matters.
The Album's Availability
In a move to offer access to the album, PleasrDAO is offering fractions of the album for purchase as NFTs, granting the public a chance to listen to it.
By pursuing legal action, PleasrDAO is setting a strong precedent that even the most advanced crypto communities must sometimes rely on traditional legal methods to protect their interests.
