PleasrDAO v. Shkreli Provides a Roadmap to Protect Artistic Works Through Trade Secret Protection

"Not every trade secret case involves a company that acquires culturally significant digital and physical assets to create interactive, community-driven experiences across the United States, a "tech-bro" who was sentenced to seven years in prison for securities fraud, a hip-hop group famous for hits like C.R.E.A.M., the most expensive musical work ever sold, and novel legal issues. Indeed, most trade secret cases involve far more mundane disputes, such as customer lists, manufacturing processes, or employment agreements between competing businesses."

"However, a district court in PleasrDAO v. Shkreli found that, at the pleading stage, the only copy of Wu-Tang Clan's album Once Upon a Time in Shaolin (the "Album") can constitute a trade secret. While a unique application of trade secret law, it does illustrate that trade secret protection can be extended to almost any type of information, including artistic and creative works."

"Much of the underlying facts of this case have been widely and extensively reported in the mainstream press and concern the purchase in 2015 by Martin Shkreli of the only copy of the Album from the Wu-Tang Clan for $2 million. The purchase agreement entitled Shkreli to a share of any profits from the use of the Album, but for a period of 88 years Shkreli was permitted to "duplicate or replicate the Work for private use,""

PleasrDAO v. Shkreli recognizes that a unique artistic work can qualify as a trade secret when an exclusivity-based business model creates independent economic value from secrecy. A district court held at the pleading stage that the only copy of Wu-Tang Clan's Once Upon a Time in Shaolin can constitute a trade secret. The purchase in 2015 by Martin Shkreli for $2 million granted limited private-use duplication rights and restricted commercial exploitation for 88 years. Martin Shkreli was convicted of securities fraud in 2017, sentenced to seven years, and ordered to forfeit nearly $7.4 million. Most trade secret disputes, however, involve customer lists, processes, or employment agreements.

Read at IPWatchdog.com | Patents & Intellectual Property Law