Damon Dash, the co-founder of Roc-A-Fella Records, is facing significant financial challenges that could lead to the auctioning of more of his assets. Recently, Dash’s 33.3-percent stake in the iconic record label was auctioned off to address a substantial debt, but this move was insufficient to cover all his financial obligations.
Background on Damon Dash’s financial struggles
Dash’s financial woes stem from various legal battles and debts, including an $823,000 judgment against him in a copyright infringement and defamation lawsuit related to the 2016 film Dear Frank. In addition to this, he owes $193,000 in back child support and is embroiled in lawsuits from multiple parties, including a photographer and a writer. Most alarmingly, he faces an $8 million tax debt owed to the state of New York.
The recent auction of his Roc-A-Fella shares was won by an anonymous New York state employee for $1 million. This amount was primarily allocated to settle the back child support, with the remainder directed towards his tax liabilities. Unfortunately, this auction did not resolve the lawsuit from Josh Webber, the producer behind Dear Frank, who is now seeking further compensation.
Legal developments and future implications
Documents reviewed by HipHopDX indicate that Webber and his attorney are pursuing ownership documents from Dash. They are requesting a court order that would compel Dash to hand over his media company, Poppington, LLC, and/or the copyrights to films he has produced. As of now, a judge has yet to make a ruling on this matter.
Dash’s financial situation has been exacerbated by ongoing disputes regarding the value of Roc-A-Fella Records. In September, he accused fellow co-founder Jay-Z of attempting to undermine the auction process. Jay-Z’s claims about the copyright ownership of his debut album, Reasonable Doubt, have been particularly contentious. Jay-Z asserts that the copyright will revert to him in 2031, while the City of New York contends that this assertion is false and detrimental to the auction’s integrity.
Controversy surrounding Roc-A-Fella Records
The City of New York has argued that the copyright for Reasonable Doubt will remain with Roc-A-Fella until 2098 and has accused the label of failing to provide evidence of the royalties generated by the album. Dash has publicly criticized Jay-Z on social media, stating that the latter’s comments have poisoned the auction environment and misled potential buyers about the album’s copyright status.
In his Instagram post, Dash emphasized that Jay-Z’s claims regarding termination rights under the Copyright Act are unfounded. He argued that Roc-A-Fella is entitled to the renewal term, which extends the copyright ownership until 2098, potentially increasing the auction value significantly.