The following was compiled by Mike Johnson @ Pro Wrestling Insider:
World Wrestling Entertainment filed a motion on 11/4 attempting to prevent ECW founder Tod Gordon from challenging for the rights to the ECW video library, particularly the Eastern Championship Wrestling era. WWE's attorneys pointed out that they purchased the entire library from the bankruptcy court in June 2003 including the portions that Gordon now seeks to have the court rule on.
WWE argued that there was nothing that indicated that the ECW library was not to cover the Eastern era and also noted that Tod Gordon was aware of the name change from Eastern to Extreme when it took place in August 1994 and clarifies Gordon's company as the "predecessor" to HHG Inc., the parent company of Extreme Championship Wrestling. They noted that Tod Gordon was aware of the bankruptcy proceedings and sale the entire time they were taking place, yet did nothing to air his "fictional ownership" at the time, so he should now be bound by the sale of the footage to WWE.
WWE claimed that by purchasing the library, they aided HHG's creditors and helped raise the stock of the ECW brand, "which had been dormant since 2000" (I guess they didn't notice that January 2001 PPV in New York City or the two house shows that followed it in Arkansas) with their various projects, by utilizing their "considerable creative, licensing, and marketing programs."
WWE claimed that Tod Gordon's Eastern Championship Wrestling, Inc. ceased to be operated as a business in April 1994 and it's stock "was bought by Paul Heyman and subsequently folded into HHG." WWE claimed (and Paul Heyman also stated as such in an affidavit, see below) that Heyman was given 50% ownership of Eastern Championship Wrestling by Gordon in lieu of a regular paycheck for his role as booker and performer, noting that Gordon "essentially had no involvement in these matters."
WWE and Heyman both claimed that Eastern was undergoing problems financially and Heyman was asked to infuse $25,000 into the company in June 1994. After the name change to "Extreme Championship Wrestling", WWE stated that Extreme Championship Wrestling, Inc. was formed as a Pennsylvania corporation listing Gordon as CEO and Heyman as Vice President. WWE pointed out that the two companies were viewed as one and the same by everyone involved, using the same talent, video library, and staff and at no point were considered two different companies. WWE then stated that Heyman then paid $175,000 "in or around" April 1995 in order to offset ECW's continuing financial issues, at which point Heyman took ownership and control, forming HHG as a New York corporation. WWE used two "Internet articles" featuring quotes from Gordon discussing his exit from ECW to qualify their claims.
WWE also noted that after they purchased the HHG assets from the bankruptcy court, they paid $250,000 to the former ECW production team, American Cable Production (Ron Buffone and Charlie Bruzzeze) and at the time, were given the representation that the sale of the library was free and clear of any issues, which means they claim Gordon never approached ACP with ownership claims prior to the library being delivered into WWE's hands.
WWE noted that Gordon did not make any movement regarding ownership claims until ten years after HHG was formed and two years after WWE had purchased the ECW library, claiming Gordon did "not now come to the court with clean hands." They categorized the motion by Gordon's attorneys as "the latest in a series of efforts by the moveants to extort money from WWE in connection with WWE's use of the Eastern footage after it became apparent that WWE was profiting from its usage, something the Moveants were never able to accomplish."
WWE followed up the extortion claim by pointing out that prior to last June's ECW One Night Stand PPV event, Gordon "staked a claim" seeking monetary compensation and was turned down. They claimed Gordon resurfaced seeking compensation again and "threatened to interfere with the airing of the pay-per-view event." Gordon was again shot down, yet didn't attempt to get a restraining order against WWE in conjunction with the footage. WWE also claimed that Gordon offered to give up his claim to the Eastern footage if WWE agreed to sign him to a book deal. Gordon signed a deal with Canada's ECW Press to write his memoir earlier this year.
Since Gordon did not attempt to stop WWE from acquiring or using the Eastern footage until the company had "invested resources into it", WWE claimed that should time bar his efforts. WWE also pointed out how damaging it would be to the company to have any portion of their library sale reversed, especially two years later. They asked the court to bar Gordon's motion and to prevent any similar motions from being brought up at a future date.
Paul Heyman gave an affidavit on 11/4, which WWE attached to their response. In the affidavit, Heyman stated he joined Eastern Championship Wrestling in June 1993 as an independent contractor and 50% owner. Heyman stated, "At that time, I was the creative director, with complete control over, among other things, (i)developing storylines, (ii)hiring talent, (iii) creating new characters, (iv) depicting and promoting characters on ECW programs, (v) developing the look and feel of ECW programs, (vi) determining finishes (i.e. the winners and losers) of wrestling matches; and (vii) determining the ECW champion(s). Mr. Gordon essentially had no involvement in these matters." Heyman stated that in lieu of pay, he was given 50% ownership and the promise of additional compensation.
He noted the name change and said that, "to my knowledge, the name "Eastern Championship Wrestling" was not used by Mr. Gordon or otherwise since 1994." The name was briefly used in 1998 during a storyline in the late Dennis Coraluzzo's NWA promotion in New Jersey, which featured an invasion of "ECW" talents led by Gordon and was advertised as such locally.
Heyman said that he was informed by Gordon that Extreme Championship Wrestling Inc. was formed but the two never treated them as separate companies. Heyman said that from the inception of forming HHG, he used Gordon's likeness and the Eastern footage when licensing ECW to third parties for video and DVD releases. He said that at no point before or after Gordon's exit from ECW in September 1997 did he "comment or complain" about the footage being used.
Heyman closed the affidavit stating, "Since about April 1995, Mr. Gordon consistently and clearly indicated, through both his words and actions, that I was the sole operator and owner of ECW."
As noted this morning, the bankruptcy court sided with Gordon and declared he could go forward with the claims to his likeness and the Eastern Championship Wrestling footage. There will be a hearing on 1/26/06 in White Plains, New York regarding both entities being used by World Wrestling Entertainment in their ECW-related projects past, present, and future.
