The 50-year-old producer is the subject of legal action from his former record label, Roc-A-Fella Records - which he co-founded with the '99 Problems' hitmaker and is still a minority share holder - after they claimed he is attempting to sell the copyright to the rapper's debut album 'Reasonable Doubt' as a non-fungible digital token (NFT) but doesn't have permission to do so.
In documents obtained by Entertainment Tonight, the complaint states Damon "had planned to sell at a SuperFarm Foundation online auction on June 23" but is now "frantically scouting for another venue to make the sale" after the auction was cancelled, but the firm insisted he has no rights to do so.
The documents state: "Dash does not even own 'Reasonable Doubt' or its copyright and, therefore, has no right to sell the album or any rights to it.
"Instead, RAF, Inc. owns all rights to 'Reasonable Doubt'. The sale of this irreplaceable asset must be stopped before it is too late, and Dash must be held accountable for his theft...
"The bottom line is simple: Dash can’t sell what he doesn’t own. By attempting such a sale, Dash has converted a corporate asset and has breached his fiduciary duties."
According to the paperwork, Jay, Damon, and Kareem Burke each own a third of the shares in Roc-A-Fella.
The document added: "Dash’s status [as] a minority shareholder in RAF, Inc., gives him no right to sell a company asset."
The complaint alleges that the producer has already minted the album - which launched Jay's career when it was released in 1996 - as an NFT and is trying to sell it "as soon as possible."
The documents were accompanied by SuperFarm's announcement about selling the album.
They had written: "SuperFarm is proud to announce, in collaboration with Damon Dash, the auction of Damon‘s ownership of the copyright to Jay-2's first album Reasonable Doubt. This marks a new milestone in the history of NFT's, entitling the new owner to future revenue generated by the unique asset.
"The monumental event will last for two days starting on June 23 and concluding on June 25. SuperFarm is excited to host this truly remarkable auction and immortalize one of the world’s greatest artists on the blockchain!"
According to the documents, the auction was cancelled following a letter from Jay's legal team.
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