Update On Cody Rhodes/WWE Lawsuit Involving American Nightmare Trademark

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Attorneys for WWE and Fanatics have responded to the lawsuit filed against them and Cody Rhodes over the use of the "American Nightmare" branding. Musician Wesley Eisold filed the civil suit in the Central District of California on September 4, alleging trademark infringement and the breach of an earlier settlement with Rhodes, demanding around $1 million in damages. In new court filings posted on Friday, attorneys for WWE and Fanatics have filed a motion of dismissal on the case; Eisold and Rhodes' prior agreement saw the latter able to use the "American Nightmare" trademark provided that Rhodes' use of the mark in items such as a apparel and merchandise also included his name, likeness, or "substantial indicia indicating association with wrestling" with those elements "75% or larger size as compared to" the trademark itself. 

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It's alleged that the merchandise being sold by WWE on its Fanatics shop using the trademark violates the settlement, as it doesn't use these elements as stipulated, potentially confusing the marketplace for consumers unable to distinguish Rhodes' merchandise from those related to Eisold's band of the same name. However, the defendants argue that all of the apparel Eisold claims to be infringing meet the threshold in his earlier settlement with Rhodes, as they include the same skull logo he has tattooed on his neck. Moreover, it is contended that the trademark, through its use in wrestling, amounts to what the settlement described as "substantial indicia indicating association with wrestling."

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WWE and Fanatics also argue that the companies were unaware of the prior settlement until shortly before Eisold filed his lawsuit, not seeing the contract itself until it was included in the complaint, therefore contending that they can't be held liable for causing Rhodes to breach the contract as Eisold has alleged when they didn't have knowledge of its existence. Rhodes' separate counsel from Jayaram Law has filed a joinder to the WWE and Fanatics motion.