According to legend, the duo of Jaylib began in 2000 when J.Rocc (of the Beat Junkies) passed a beat tape (an instrumental CD with unused beats) to Madlib. These beats happened to be by none other than J Dilla (of Slum Village fame). An enthusiastic Madlib then recorded over these beats and labeled them "Jaylib", without the intention of actually releasing them. After Stones Throw placed one of these recordings on a mixtape (under the name Jaylib), and J Dilla caught ear of this, the full collaboration began to blossom. Read more on Last.fm
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