3LAU Sued for Not Compensating Collaborator in $11 Million NFT Sale – Rolling Stone

Justin Blau, the DJ/producer and NFT hotshot better known as 3LAU has been accused of not adequately compensating one of his collaborators with the proceeds he earned from a blockbuster NFT sale in early 2021.

Artist Luna Aura (real name Angela Anne Flores) has filed a new lawsuit against Blau, claiming he only offered her a one-time payment of $25,000 after he collected over $11 million from NFT sales partially involving their 2017 song , “Walk Away.” Flores accuses Blau of unjust enrichment and breach of contract, saying Blau and his company 3LAU Entertainment “did not seek Luna Aura’s permission or license … to include her work in the auction, nor was Luna Aura adequately compensated for her work.”

A representative for Blau did not immediately return a call Rolling stoneits request for comment.

According to the lawsuit obtained by Rolling stone, Flores and 3LAU Entertainment signed a contract in November 2017 for a song that would later be called “Walk Away”. While 3LAU Entertainment was granted “sole and exclusive rights” to the master recording, the contract stipulated that Flores would receive a “basic royalty rate” on top of the money she received from her 30 percent stake in the song’s publishing.

“Walk Away” was released as a single on December 1, 2017, and it later appeared on 3LAU’s album, Ultraviolet, which arrived on February 16, 2018 (via Blau’s own company, Blume). Although the album performed well, it arguably garnered the most headlines in February 2021, when Blau celebrated its third anniversary by creating a collection of NFTs around the album and selling them for a total of $11.6 million.

As Flores’ lawsuit notes, the digital tokens also came with some real-world extras, such as access to unreleased music and experiences (like the chance to create a song with Blau). Some tokens could also be redeemed for “special edition physical vinyl records” of Ultraviolet. There were also “at least eight NFTs specific” to “Walk Away”, which allowed anyone to listen to the song (not just the owner of the NFT).

Flores’ lawsuit states, “All Ultraviolet album sales necessarily include a reference to the song “Walk Away” … and at the same time, at least some of the auction proceeds are direct or attributable to the sale of “Walk Away” NFTs.” Still, Flores claims she received “no compensation from revenue generated from the NFT project, and neither does Luna Aura [received] appropriate credit in connection with “Walk Away” and Ultraviolet NFTs.”

According to the lawsuit, Blau offered Flores the one-time payment of $25,000 as compensation, although no agreement was signed. Meanwhile, the lawsuit adds Ultraviolet and “Walk Away” NFTs are still marketed and sold “without compensating Luna Aura.”