Lawyers: Judge rules that previous owners have rights to Hard Rock Park's theme

A federal bankruptcy judge ruled today that some of Hard Rock Park's intellectual property rights still belong to the park's previous owners, who are asking the park's new owners for royalties and a licensing fee, according to attorneys involved in the case.

The $400 million park, which opened in April and closed in bankruptcy in September, was purchased in February by FPI MB Entertainment for $25 million. But Steven Goodwin, the park's former CEO, says the park's overall theme still belongs to a corporation he heads.

FPI MBE has asked Judge Kevin J. Carey to affirm that the park's intellectual property rights had been transferred to them when the court approved the sale of the park to FPI MBE in February. It also asked for protection from future lawsuits regarding the transfer of the intellectual property rights and said that Goodwin waived his rights to the park by not objecting to the sale order in a timely fashion.

Carey denied the request.

In court filings, FPI MBE said the royalty request jeopardized the park's planned Memorial Day opening. An attorney for FPI MBE, though, said the park will still open on time despite the judge's ruling.

Carey read the order during a telephone conference call this afternoon, attorneys said. Joseph Gitto, an attorney for Goodwin's corporation, said the ruling indicated that all the park's intellectual property rights were not transferred to FPI MBE along with the park's physical assets.

"Steven put a lot of work into this park as well," Gitto said. "No one's looking to keep this park closed. It's just a matter of working together among the parties to get it opened."

Goodwin was asking for an annual $500,000 licensing fee and 1.5 percent of gross revenues over $50 million.

Skip Scott, an attorney for FPI MBE, said the company will make the appropriate changes to the park, such as altering the names of rides and restaurants, to avoid infringing on any of Goodwin's intellectual property rights. But he said it is unlikely that FPI MBE will pay Goodwin any royalties.

FPI MBE said that at best, Goodwin's corporation might own the names of some of the rides.

"Many of the names for the rides and attractions and restaurants would have changed over time in any event, now it's a little bit more of a hurry-up fashion," Scott said. "The park did not get rave reviews for its creative content previously, and there is a concerted effort to change that in any event."

Scott said further legal action could occur in the future. In a statement, FPI MBE said Carey left open the possibility of reexamining some intellectual property issues at the park in future hearings.

"Today's ruling doesn't change anything to affect our timeline," Steve Baker, the president of Baker Leisure Group, which is managing the park, said in the statement. "If anything, this provides us more of an opportunity to totally rebrand many areas in the park we felt needed to be more family friendly and better represent everything we have to offer."

In court filings, Goodwin maintained that the intellectual rights to the park's overall theme, design and layout belonged to HRP Creative Services Co. He said he transferred the park's intellectual property rights to that corporation from HRP Myrtle Beach Operations, one of the corporations that filed for bankrupcty, in 2006.

Two of the park's original founders, Felix Mussenden and Jon Binkowski, are also partners in HRP Creative Services.

The previous owners leased the Hard Rock Park name from Hard Rock International last year for $2.5 million and are not claiming any rights to the actual name. The new owners are still discussing with Hard Rock International over whether the name can be kept for this year.

Comments

[RICK]

WHAT A LOAD OF BS

[GoodJoe]

UNBELIEVABLE!!!!!!!

[Old Jim 70]

They filed bankruptcy in order to cheat investors, and service providors out of their money. Now a judge rewards them an income for incompetence, poor judgement, and cheating people out of their money. The Obama effect is taking hold.

[otcarter]

That is complete CRAP! If anything that money should go to paying off their bad debts.

[Joe]

Great idea. Reward the idiots who opened the thing, and ran it into the ground in record time.

[bryan]

They should just change the name of everything anyway. Start with crashed zeppellin coaster.

[haha]

To the new owners. Just change names accordingly and don't pay these guys a thing. It looks like you're on that track anyhow. Goodwin, nice try but you've made your last dime from this place.

[G]

sure thing old jim, blame obama

[bryan]

Or how about, bankrupt bumper cars

[bryan]

Or fraudulent ferris wheel

[MB Native]

AWESOME!!! FPI MBE deserves everything they get. What a bunch of idiots to think they can waltz into town, pay 1/16 of the parks value, spend a few mill, and turn a profit the first year. Those clowns couldn't do it at Cypress Gardens and they won't do it here.

[Helen Smith]

Changing the whole concept of the "hard rock"image is best thing that could happen. It needs to be more family oriented with shows,etc., for parents, or grandparents while kids enjoy the rides. The "hard rock" idea turned many of us older adults off from the beginning. Good luck!

[ttom]

NOW, Can we bring in the wrecking crews and scrap dealers? The scam is about up, put the place out of everyone's misery and build that public housing project all the mb and horry council want there.

[Ken]

Perhaps this is for the best for FPIMB, so they can create new names for thier rides,shows and resturants to thier own style&quality that could appeal to more familys still within keeping the music theme.

[XZY]

So pay the former owners for their failure?? Not a chance, I would spend all I had to change it and not pay that jerk a dime!

[Park Fan]

Interesting that the former owners didn't bring up the intellectual property rights BEFORE the sale of the park. Of course that would have ensured that the park wouldn't have sold, wouldn't it.

Losing the Hard Rock name and ride themeing will ensure a quick death for the park. The theming is what would have brought in the crowds if they would have advertised the park. The gas price issue faded away this year, but of course the economy is still an issue.

Removing the featured attractions, or changing the names will not be offset by bringing in a bunch of kiddie rides and generic rides.

[Ken]

ParkFan,
I think they planned to bring in some kiddie rides this year anyway as they don't take as long to set up vs. building a major ride from the ground up in just 3 short months,even if the park does go somewhat generic,I think it would just be a temporary transition phase till they can get time&money to become creative with themeing.Us Theme Park Fans will need to hold thier feet to the fire and demand "Quality" (:

[Captain]

HRP is a crap theme to begin with. The UNintellectual theme is a huge part of the failure. Change it all, Goodwin is a thief and simply deserves nothing.

[King Ward]

These swindlers should be put in jail. First they failed utterly; then they forsook their debts; and now they want to steal from the new owners. I say to hell with them.

[pitbullstew]

the judge musta worked at AIG in a previous life?

[Kurt]

you built a park and then drove it into the ground!
walk away with yer 25 mill consolation prize and QUITCHERBICHIN !

[Curt in Charleston]

Many things unbelievable here.

I've been keeping up with the HRP saga for a long time now. I went, wasn't overwhelmed but had a good time, and will go back. I realize Disneyworld didn't start off with 100 rides either.

What I find unbelievable are those who supposedly live in MB all but praying for the park's demise.

And the genius here who is blaming Obama for the park's troubles. Unbelievable.

Can you whiners and haters even hear yourselves? Thank God I've never run into any of you on my trips up the coast.

But the most unbelievable of all is this Goodwin character and his last-minute scams - the crook. I hope he gets not one cent from the new owners.

Best wishes to the new new owners of HRP, to many years of success and growth to the park, and to my fun sister city up the coast.

[Ken]

Curt,

It's refreshing to see I'm not alone in supporting the park, the negative comments on the regular Sun News forums make these look pale in comparrison which is still sad.
I see great potential in the new owners as they are letting it be known they did'nt just buy the park and open it the next day, they are doing everything they can to make it more family friendly as well better marketing and I think they will be more flexable with thier prices(then previous owners) as they see how things go.

[Mark]

"Nuts"

[Stephen Cravak]

This is a forum to express opinions in order for opening our minds to new ideas and perspectives. Though many of you feel this is a means for your 'soap box' speeches. Please spare us those, and instead look at the big picture.
A large amusement facility was built, mind you in an era when few 'new' complexes arise. While it was created to generate cash for those who already have enough, it can be a place to make any individual and/or family relax, and enjoy their day together. If anything, this country needs more amusement parks, libraries, parks, and playgrounds. While this new company also seeks to make a profit, motive doesn't count here. Instead let's hope they succeed to creating a park that the general public can enjoy.
Mr. Goodwin has a right to his intellectual property, though in this case he deserves nothing because he should have taken responsibility and warned the purchasing party. He did not, and thus should not be rewarded for his cunning cowardice.
America and its citizens needs to take responsibility for their actions. This darkening age of entitlement MUST END NOW!
Take care everyone, and best of luck to 'Whatever They Call It' Park.

BTW - It doesn't need to be called Hard Rock Park. It was just a cover for publicity. They can simply call it 'You'll Crap Your Pants Party Park' and instantly they become famous around the globe.

Cheers,
An Educated Person