2000s
In 2000, The Island Def Jam Music Group announced the formation of Def Jam Germany, the first international Def Jam company. This increased the label's presence around the world. Def Jam Germany signed German rappers Spezializtz and Philly MC. The label was located in Berlin and opened on May 23, 2000. In addition to signing and marketing local artists, Def Jam Germany also marketed all U.S. signed Def Jam artists in the German territory. But the German division folded just two years later in 2002. Many of the artists were picked up by Universal/Urban, while others did not get a new contract.[22]
The new millennium saw Roc-A-Fella, Def Jam's subsidiary, begin to expand beyond one figurehead artist.[23] Roc-A-Fella Records artists proved successful with the Jay-Z's The Dynasty: Roc La Familia (2001) and The Blueprint (2001), including the labels other signees gaining recognition with Beanie Sigel's The Truth (2000) and Memphis Bleek's The Understanding (2001).[24]
The second international label is a Japanese branch, Def Jam Japan (デフ・ジャム・ジャパン), also founded in 2000.[25] The label was later rebranded as Def Jam Recordings; however, it is sometimes still referred to as Def Jam Japan.[26] Their artist roster has included Japanese-American singer Ai, Teriyaki Boyz, AK-69, Nitro Microphone Underground, and South Korean boy band BTS.
Ja Rule released his third studio album, Pain Is Love, on October 2, 2001, through Def Jam. Pain Is Love topped the Billboard 200 with first-week sales of 361,000 copies and was certified triple platinum by the RIAA.[21] The album was supported by the singles: Down Ass Bitch, Always on Time, and Livin' It Up.
In January 2003, Murder Inc. became the center of a money laundering investigation involving illegal profits from drug trading,[27] leading to the label's eventual release from its distribution contract by 2005. Def Jam also blocked Murder Inc. and TVT Records from releasing a Cash Money Click reunion album, due to Ja Rule's contractual obligations, which alleged that Cohen paid Ja and Irv Gotti US$8 million not to submit the project to TVT, but instead to parent company Universal.[28][29] This resulted in TVT suing Def Jam, alleging infringement, fraud and tortious interference, winning $132 million in a judgment,[30] but was later reduced to $126,000 after Universal and Def Jam appealed the ruling, claiming that the existence of an agreement between the parties meant that their behavior was only a breach of contract and not fraud.[31] That September, DMX released his fifth album, Grand Champ. Though it was DMX's fifth number one album and was certified platinum by the RIAA, it was his final album for the label before leaving in 2006. Also that September, Def Jam released the video game, Def Jam: Fight for NY
The final shares of Roc-A-Fella Records were sold to Island Def Jam in 2004 for $10 million.[32] By that time, Roc-A-Fella and Def Jam had launched the career of rapper-producer Kanye West. His debut, The College Dropout, went on to sell over two million copies. Co-founder Damon Dash and Kareem "Biggs" Burke were forced out of the label as Cohen left IDJMG for Warner Music Group, and was replaced by music executive Antonio "L.A." Reid. Frustrated, Liles and now-chairwoman of Atlantic Records, Julie Greenwald eventually decided to follow Cohen to Warner.[33] Additionally, Mike Kyser left Def Jam to work for Atlantic Records under Cohen. That same year, through Def Jam A&R executive Shakir Stewart, Def Jam signed Atlanta, Georgia based rapper Young Jeezy.[34] His debut album, Let's Get It: Thug Motivation 101 was released in July 2005 and was co-executive produced by Stewart. The album's singles Go Crazy and Soul Survivor help push the album to double platinum status in America.
Under Jay-Z's leadership, Def Jam launched the successful careers of contemporary R&B singers Rihanna and Ne-Yo. At the end of 2007, after he released American Gangster, Jay-Z decided not to renew his contract as the president and CEO of Def Jam in order to start his new Live Nation venture, Roc Nation.[39] Following Jay-Z's departure, L.A. Reid took over leadership of the label, as opposed to hiring a replacement. In June 2008, Shakir Stewart was appointed as the executive vice president of Def Jam, a position that was previously left vacant since December 2007. However, on November 1, Stewart committed suicide, vacating the position again..[34][40]