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In a decision blending hip-hop mystique with intellectual-property nuance, the Eastern District of New York refused to dismiss trade secret claims over the Wu-Tang Clan's one-of-a-kind album, Once Upon a Time in Shaolin. U.S. District Judge Pamela K. Chen held that the album could plausibly qualify as a trade secret under both the Defend Trade Secrets Act (DTSA) and New York law.
A Novel—and Very Wu-Tang—Application of Trade Secret Law
The Court's ruling stretches trade secret doctrine into the realm of art. Traditionally, trade secrets protect business formulas or data, not platinum-plated cultural artifacts. Yet the DTSA broadly covers "all forms and types of...information" with independent economic value derived from secrecy.
Martin Shkreli, the album's notorious former owner, sought dismissal, but the Court found that the new owner—PleasrDAO, a crypto-collective devoted to linking NFTs and art—plausibly alleged:
- Value from Secrecy: The album's worth arises precisely from its exclusivity; it was designed as an anti-streaming statement and contractually barred from release for 88 years.
- Distinct Business Model: PleasrDAO's aim is to curate an "experience" rather than sell music—a reminder that scarcity itself can be a business strategy.
- Robust Protection: The DAO allegedly secured the album with controlled access, constant surveillance, and armed guards. (Wu-Tang always did warn that protection is nothing to play with.)
This marks a departure from cases involving unreleased works by Prince or Janet Jackson, where courts rejected trade-secret claims because the value lay in eventual release, not secrecy.
Implications for Clients
The ruling signals an evolving view: information—or art—can hold economic value simply because it's rare, mysterious, or unattainable. For companies, artists, and collectors alike, it highlights:
- Protection of Unique Assets: Confidentiality measures for one-off works or prototypes can support future trade-secret claims.
- Redefining Economic Value: Secrecy itself can be monetized.
- Broader IP Strategy: Trade secrets can complement copyrights, trademarks, and NFTs to preserve exclusivity and control.
While the case continues, Shaolin suggests that secrecy may now be recognized as a legitimate form of scarcity. Whether that insight elevates art—or just locks it further in vaults—remains to be seen. But one thing is clear: even in federal court, Wu-Tang still ain't nothin' to mess with.
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