WWE, Cody Rhodes and Fanatics are facing legal action due to the “American Nightmare” nickname used by the company’s reigning WWE Universal Champion.
The lawsuit is being brought forth by Wesley Eisold, the front man for the band “American Nightmare,” due to merchandise containing the “American Nightmare” name and trademark.
It was filed in federal court in California, alleging trademark infringement, breach of contract and deliberate interference with contractual agreements.
Eisold is seeking $150,000 in damages and treble damages of up to $300,000 for federal trademark infringement, along with additional attorneys fees and expenses.
According to the lawsuit, the agreement the parties entered into in 2021 allowed Cody Rhodes to use the trademark, provided the use cases met several requirements:
G. Eisold and Runnels settled, allowing the wrestler to use “The American Nightmare” on clothes so long as they prominently feature Runnels’ name, his name and likeness, or substantial indicia associated with wrestling.
62. On March 14, 2021, Eisold and Runnels entered into a settlement agreement.
63. A copy of the settlement agreement is attached as Exhibit 4.
64. Eisold signed the agreement in California, and Runnels signed in Ohio. Case 2:24-cv-07516 Document 1 Filed 09/04/24 Page 9 of 65 Page ID #:9
65. In section 1(a) of the agreement, Eisold consented to Runnels’ registration of “The American Nightmare” in connection solely with class 41, i.e., entertainment services.
66. In section 1(b), Eisold allowed Runnels to use (but not register) the Runnels Mark in connection with clothing and apparel in class 25 on the condition that the clothes feature—75% bigger than the Runnels Mark—Runnels’ name, Runnels’ name and likeness, or substantial indicia associated with wrestling.
67. In section 2, Runnels agreed to pay Eisold $30,000.
68. In section 4(a), Eisold and Runnels agreed to withdrew their filings in the TTAB proceedings.
69. Section 4(b) states that the parties will reasonably cooperate to prevent reoccurrences of any confusion resulting from their concurrent use of the two marks.
70. Section 4(c) provides that “no Party shall assist any third party in taking any action, or cause or request any third party to take any action, that the Party is prohibited from taking under this Agreement.”
71. Section 7(c) bound to the agreement the parties’ principals, owners,
successors, assigns, licensees, affiliates, and others acting by or through them, under
their direction, or in privity with them.72. Runnels and Eisold have not entered into an agreement superseding the settlement agreement, and no one repudiated the agreement before performance was due.
H. Eisold has performed his obligations under the settlement agreement.
73. Eisold has fully performed his obligations under the settlement agreement. He has also performed all conditions precedent that the agreement requires him to perform.
74. Specifically, Eisold has performed his duties under sections 1, 4, and 7 and other provisions in the settlement agreement. Eisold has allowed Runnels to register the Runnels Mark in class 41 and to use the Runnels Mark in class 25. Case 2:24-cv-07516 Document 1 Filed 09/04/24 Page 10 of 65 Page ID #:10
Eisold has withdrawn his filings in the TTAB proceeding. And, as laid out below, Eisold has attempted to reasonably cooperate with Runnels to prevent confusion over their concurrent use of the two marks.
Eisold’s claim is that WWE, Cody Rhodes and Fanatics are producing and selling merchandise using the “American Nightmare” name with little or no reference to the wrestler Cody Rhodes. They claim they see fans wearing the merchandise at their shows and that there is often confusion over social media hashtags and tagging going to the wrong accounts.
86. Fans of WWE and wrestling continue to frequently tag the American Nightmare in Facebook and social media posts. Some fans who have tagged both Runnels and the band in posts have asked if Eisold and American Nightmare approve of the Runnels clothes.
87. To date, fans of both Runnels and American Nightmare purchase the Runnels clothes. Fans attending American Nightmare concerts and other events— including in California and specifically this judicial district—wear both the Runnels clothes and the Eisold clothes.
88. Fans of Runnels and Eisold commonly make, buy, and wear clothes that mix Eisold Mark, the Runnels Mark, the Eisold Angel Logo, the Eisold Shield Logo, the Runnels Logo, and references to both parties
