JAY-Z has taken the proper steps to ensure that whoever ends up acquiring Dame Dash‘s shares of Roc-A-Fella Records understands what will happen to the biggest asset included in the sale.
In a legal document uncovered by TMZ Hip Hop, Hov’s attorneys have notified the courts that once the legendary imprint’s ownership of the copyright on Reasonable Doubt ends in 2031, those rights will revert to “one Shawn Carter/”JAY-Z.”
The copyrights in question cover not only the rapper’s classic debut album and it’s title, but also each individual song on the 14-track project.
While the filing is the type of legal move that could easily go unnoticed, this one caught the outlet’s radar due to the ongoing drama around Dash’s portion of the business he co-founded with JAY-Z and Kareem “Biggs” Burke in 1994.
As previously reported, Dame’s 33.3 percent interest in the famed record label will be sold off at a public auction in New York City on August 29. Proceeds from the sale will be used to make good on the $823k he owes to movie producer Josh Weber for copyright infringement and defamation over the 2016 film, Dear Frank.
However, per an earlier article from TMZ the sale may not be as enticing as it sounds, as the purchaser will only be a minority owner and have no official say in the company – because all decisions require a majority vote. The worst part, however, is they’d only be set to make money back from their shares for a limited amount of time.
“There’s also an expiration date on the master ownership for the company, which means revenue and the only asset doesn’t have many years left,” a source told the outlet.
Earlier this year, after a judge ordered Dame to sell his shares to make good on his aforementioned debt, both Jay and Biggs objected on the basis that company bylaws mandate that the board of directors must first approve the sale of any stakes in the imprint.
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However, U.S. Magistrate Robert W. Lehrburger ruled that the former exec’s one-third ownership of Roc-A-Fella can, in fact, be seized to help cover the judgment since it is his personal property.
In his 15-page decision, Lehrburger blasted Jay and Biggs for creating a no sell-off clause during a 2021 board meeting that Dame did not attend or vote for. He ordered Roc-A-Fella to deliver Dame’s stock certificate to the U.S. Marshals Service for an auction in 180 days.
Jay and Biggs’ main objection is less about siding with Dame, however, and stems from concerns that an outsider can purchase the intellectual rights of Roc-A-Fella. To address the issue, Lehrburger said, “They can participate in the auction and place the winning bid.”