Wednesday, May. 20, 2009

Freestyle Music Park sued by former Hard Rock Park owners

The original owners of the former Hard Rock Park, which filed for bankruptcy in September and is set to open under new ownership on Saturday as Freestyle Music Park, are suing the new owners for trademark infringement and unfair competition, according to court documents.

The original owners, led by Steven Goodwin, the park's former CEO, and Jon Binkowski, its former chief creative officer, are asking for an unspecified amount of monetary damages from a federal court in Delaware. They allege the park's new owner, FPI MB Entertainment, is using intellectual property that belongs to them.

Goodwin and Binkowski are asking a judge to stop FPI MBE from using its intellectual property at the park, and a hearing has been scheduled for tomorrow. It was not immediately clear how such a ruling would impact the park's planned reopening.

Attorneys for both sides in the lawsuit, which was filed April 24, could not immediately be reached for comment.

The claims are an offshoot from the park's bankruptcy proceedings. Even though FPI MBE purchased the $400 million park out of bankruptcy for $25 million, a judge ruled that a company founded by Goodwin and Binkowski -- HRP Creative Services Co. -- still owned intellectual property rights over the park's overall layout, theme and design.

FPI MBE had asked the bankruptcy judge to affirm the intellectual property rights had been transferred to them when they purchased the park. The request came after HRP Creative Services had asked FPI MBE for royalties, though in court filings, HRP Creative Services says a representative from FPI MBE contacted them first about a licensing agreement.

In a letter filed as part of the court proceedings, an attorney for FPI MBE says as a result of the company's rebranding of certain portions of the park -- it has renamed the themed areas and the rides -- it will not be using any trademarks that belong to HRP Creative Services.

But HRP Creative Services says that is not enough. It says FPI MBE is still using its intellectual property because the rides and other attractions at the park still retain "highly distinctive and stylized themes and trade dress" that are owned by HRP Creative Services as intellectual property.

In court filings, FPI MBE denies the allegations.

HRP Creative Services is trying to market the former names of the attractions and open up stand-alone restaurants, themed areas and even theme parks, according to the court filings. They have set up a Web site, www.hrpusa.com.

Specifically, the filings say Binkowski is working with Universal Studios to develop a traveling country ice-skating show that was performed at the park last year and was entitled "Country on the Rocks." FPI MBE has said it will run a similar show at the park this year called "Ice Cold Country."