Cody Rhodes, WWE, and Fanatics being sued over “American Nightmare” trademark
Rock musician Wesley Eisold has filed a lawsuit against Cody Rhodes (Cody Runnels), WWE, and WWE’s main merchandising partner, Fanatics. The complaint, filed on Wednesday in a California federal court, alleges trademark infringement, breach of contract, and intentional interference with contractual relations.
Here is the preliminary statement from the filing…
1. This is an action for federal and state trademark infringement under the Lanham Act, 15 U.S.C. § 1141, California Business & Professional Code section 17200 et seq., and California common law as well as for substantial and related claims for breach of contract, inducing breach of contract, and interference with contractual relations under California law.
2. Wesley Eisold is the lead singer of the renowned punk rock band American Nightmare. Eisold holds the registered trademark “American Nightmare” in pre-recorded music, clothing and apparel, and entertainment services (“Eisold Mark”). Eisold sells counterculture-style clothes and merchandise often featuring the words “American Nightmare,” a logo of a black-and-white winged angel of death, the American flag’s stars and stripes, or a logo of a stars-and-stripes shield with wing-like baseball bats (“Eisold Shield Logo”).
3. Defendant Cody Garrett Runnels, professionally known as Cody Rhodes, is a world-famous wrestling “Superstar” of Defendant World Wrestling Entertainment, LLC. Runnels promotes himself as “The American Nightmare.”
4. Runnels attempted to register the trademark “The American Nightmare” (“Runnels Mark”), which Eisold opposed. The two then entered into a settlement agreement. Eisold allowed Runnels to use (but not register) the Runnels Mark in clothing and apparel on the express condition that the only clothes and apparel that Runnels was allowed to sell had to prominently feature Runnels’ name, Runnels’ name and likeness, or significant indicia of wrestling—which must be 75% or larger than the Runnels Mark.
5. Runnels, WWE, and Defendant Fanatics Holdings (“Fanatics”) sell clothes that blatantly violate the express conditions in the settlement agreement and Eisold’s trademark (“Runnels clothes.”) 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 counterculture-style clothes often feature a winged skull embossed with the stars and stripes (“Runnels Logo”), a black-and-white winged skull, or various representations of the U.S. flag.
6. Widespread confusion about Runnels’ use of the Eisold Mark persists among WWE fans and Runnels’ fans. Legions of American Nightmare fans ask Eisold if he endorses Runnels or the wrestler’s use of the Eisold Mark and his image. Eisold’s fans frequently buy the Runnels clothes by accident, Runnels’ fans regularly buy the Eisold clothes by mistake, and fans of both inadvertently make and purchase apparel that mix references to both the band and to Runnels.
7. Eisold thus seeks damages and injunctive relief.