October 28, 2025

Wu-Tang (Not) for the People

By Emily Poler

Remember the felonious financial and pharmaceutical mogul Martin “Pharma Bro” Shkreli? Back in 2015 he paid $2 million for the only copy of Once Upon a Time in Shaolin (the “Album”), a double CD by hip-hop collective Wu-Tang Clan. According to the Clan, their aim was to make a singular recording on the level of fine art (it also came in a fancy box) as a commentary on the devaluation of music in a digital world. Wu-Tang, to ensure the Album remained unique, required Shkreli to sign a restrictive purchase agreement preventing him or any subsequent buyer from copying or exploiting the album beyond certain permitted uses, such as a private listening party, for 88 years. What’s more, Shkreli (and any subsequent owner) could only resell the Album to a third-party under those same terms and conditions.

As we all know, things soon went downhill for the much-reviled Shkreli. In 2017, he was convicted on federal securities fraud charges and sentenced to seven years in prison and ordered to forfeit over $7 million in assets, including the Album. The forfeiture order also barred Shkreli from acting in any way that would harm the value of the forfeited assets.

Fast forward a few years to 2021, when PleasrDAO, a “Decentralized Autonomous Organization” of digital artists and NFT collectors who buy, fund and display culturally significant media for the purpose of creating “unique experiences,” purchased the Album for $4 million in crypto (naturally), later making a brief sample of it available to anyone who bought a $1 NFT it issued. (Each purchase reduces the time until the album can be revealed in its entirety by 88 seconds — the “unique experience” in this case). 

Of course, Shkreli couldn’t just fade away into the background of the story. After his release from prison in 2022, Shkreli repeatedly proclaimed on social media (without any acknowledgment of the irony) that he had retained digital copies of the Album. He also hosted a “listening party” on Xwitter where almost 5,000 people listened to his broadcast of the album. Maybe he just forgot the rules? Oh, probably not.

Unsurprisingly, PleasrDAO was not happy with this. The organization filed a complaint against Shkreli alleging, among other things, violations of the Defend Trade Secrets Act (“DTSA”) and state trade secret law. Shkreli moved to dismiss these claims on grounds that PleasrDAO hadn’t alleged a “secret” sufficient to bring the album within the protection of trade secret law.

For those who may not be familiar with the DTSA and state trade secret law, they apply to a range of “financial, business, scientific, technical, economic, or engineering information….” Generally, this means things like customer lists, formulas, procedures, etc. To qualify for protection under these laws, the party possessing the information has to show that it has taken efforts to guard its secrecy and/or that it could not be easily duplicated by others. 

Here’s where things get interesting. On September 25, 2025, the Court denied Shkreli’s motion to dismiss PleasrDAO’s trade secret claims, finding that, while ”the Album does not fit squarely within a category of business information or data that is traditionally protectable as trade secrets…,” at least at this stage of the litigation, the Plaintiff had adequately alleged that the Album could qualify as a trade secret. Why? Because the Court recognized the album was “subject to significant restrictions regarding its distribution” as Plaintiff took significant measures to protect its secrecy, and its value rests on the fact that it hadn’t been heard by the public at large. Here, the Court noted that the Album, unlike musical works that other courts previously found were NOT trade secrets, derived its value from the fact that it was intentionally “secret” as opposed to just unreleased. 

This is an interesting decision and perhaps wholly unique given the weird facts of the case — an Album with only one copy, subject to an agreement prohibiting its duplication, and also worth a lot of money. My one big question, though, is whether the Album really qualifies as either “financial, business, scientific, technical, economic, or engineering information,” per the accepted definition of a trade secret. Just based on what trade secret law generally protects — financial data, prototypes, business plans — I’m not so sure. That said, plenty of courts have held that trade secret law protects all forms of business information, and while the Album doesn’t feel like business information to me, I can’t really come up with a good dividing line for what is or isn’t business information. This is particularly true given that the value of the Album is rooted in its being secret, and that PleasrDAO is literally in the business of providing “unique experiences,” which in this case is based on its method of slowly revealing that secret through its NFT offering. 

In terms of wider implications, it’s conceivable that classifying this Album as a trade secret may open the possibility of a new category of trade secrets and encourage other creators and owners of art to try and protect their works under relevant law, especially as it pertains to digital art that is easily copyable but whose value is based on limiting access. The whole thing might, as in the title of one of the best-known Wu-Tang tracks, “Bring Da Ruckus” to our traditionally accepted definition of trade secrets.