-- WWE along with Fanatics submitted new court filings yesterday for a motion to dismiss in response to a lawsuit by musician Wesley Eisold against them as well as superstar Cody Runnels (Rhodes). Eisold's suit alleges trademark infringement along with breach of an earlier settlement that he made with Rhodes for use of the "American Nightmare" mark. WWE and Fanatics are arguing that the merchandise that Eisold is suing over is in compliance with the previous agreement since it is accompanied by Rhodes' skull logo trademark, arguing that it is part of his likeness. The latest developments were first reported by Brandon Thurston.
-- Eisold, who performs under the name Cold Cave, co-founded the band "American Nightmare" back in 1998 and subsequently made an agreement with Rhodes in 2021 that allowed the wrestler to use the trademark as long as use of the mark included Rhodes' name, likeness or other elements as long as they are "75% or larger size as compared to" the American Nightmare phrase. As noted, WWE and Fanatics are arguing that the Rhodes' trademark skull satisfies those requirements; they claim that due to Rhodes' popularly worldwide, people have come to associate the skull (which Rhodes has filed as a trademark of his own) to the wrestler.
-- Eisold filed the lawsuit in September alleging that many items that WWE sells on its Fanatics shop using his trademark "American Nightmare" violate that settlement because there is no accompaniment of Rhodes' name, likeness or wrestling elements which he argues would ensure that there is no confusion in the marketplace between the two entities.
"The Runnels clothes are brandished with the words ‘American Nightmare’ but do not include Runnels’ name, his name, likeness or indicia of wrestling (or do so in puny fashion)."
-- The motion from WWE and Fanatics also contends that neither company knew of the Rhodes-Eisold settlement until shortly before Eisold filed his lawsuit, and that they didn’t see the contract itself until it was included in his complaint. WWE and Fanatics further claim that they can’t be held liable for causing Rhodes to potentially breach the contract (as Eisold's lawsuit states) since they didn’t have knowledge that the contract even existed.
-- The lawsuit is being litigated in federal court in the Central District of California. WWE and Fanatics are represented by the same firm while Rhodes is represented by a different team, however, his lawyers support WWE and Fanatics' arguments and are asking the courts to throw out the lawsuit based on the same reasons.
