The original owners of the former Hard Rock Park, which filed for bankruptcy in September, 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 Saturday's planned reopening of the park, which is now called Freestyle Music Park.
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."
HRP should be paying for for the cost to eliminate their stupid ideas that did not work and are being changed
Posted by: Captain | May 19, 2009 at 11:02 AM
Are they serious? FMP changed things in the park, removed the HRP naming, rethemed areas, added/removed stuff.
If the judge rules in favor of HRP, then this just means that somebody loses a house, they can sue the new homeowners who are benefiting from features in the house, like a pergola or renovated kitchen.
Posted by: Nick | May 19, 2009 at 11:21 AM
And really, these type of things should help people realize that it's not the original owners that own FMP.
Fact: there were three owners to HRP; Steve, Jon, and the other guy.
So, even if FMP is owned/run by "the other guy," the argument is that it's two of the original owners. So that leaves Steve or Jon.
Which means that one of them is suing themselves. And that they rethemed areas because of a past lawsuit that they would have had to file against themselves (the one that allows HRP to receive royalties for "intellectual property" use).
So, wouldn't it have just been easier to not file the lawsuits, if in fact it's owned by two original owners?
It would have saved money on retheming, and not to mention the lawyer fees, since there would have to lawyers representing them/HRP, and them/FMP.
So obviously, not the original owners.
Now, financial backers.. sure. But that's different than an owner. They give money in the hopes of getting a profit, or for some people, a tax write-off. We don't know the new owner's mind if/when they were backing HRP. Perhaps they foresaw the problems HRP would have, and realized they could buy the park 1 year later. Which is probably why Steve and Jon are upset.
Posted by: Nick | May 19, 2009 at 11:28 AM
You've got to be kidding. HRP went BANKRUPT an in no small part to total mismanagement! HRP Creative Services doesn't deserve a dime. Freestyle Music Park has changed all the names, branding, etc. Leave them alone!
Posted by: Tammy | May 19, 2009 at 11:30 AM
goodwin is nothing but an idiot.. like a kid that didn't get his way..he is a pathetic excuse for a man..if he hadn't been so stupid and greedy maybe his park might have made it. now he wants credit for someone else's work.. get a job loser..
Posted by: justme | May 19, 2009 at 12:02 PM
Goodwin-- You will sooner or later get Jail time for your "Schemes"
Posted by: Mark HIatt | May 19, 2009 at 12:09 PM
This is a sad abuse of IP law. Stop trying to get rich via litigation and make something NEW that will fail. They must've thought that the purchaser was going to dismantle the park and sell it off in pieces. I hope they drown in legal fees.
Posted by: Paul | May 19, 2009 at 01:37 PM
sounds like Goodwin has lost his mind...lol. Does he not realize this is America! We dont allow crooks in our country...lol
Posted by: jeff | May 19, 2009 at 01:42 PM
They just won't let this park to succeed
This comes across as a bit childish.
I really hope the Judge has the gonads to tell Goodwin&Binkawski that it's over for them and that they are orderd to pay some hefty court fees for wasteing the court and lawyers time with this.
The Park has been rebranded-end of story!!
Posted by: James | May 19, 2009 at 02:41 PM
Nick,
Are you a GD moron or just financially illiterate? If you think there is a difference between financial backers and ownership then I've got a bridge to sell you. When you put in equity you become by definition an owner. You mixed up between "owner" and "management".
Do you think the CEO of General Electric is the owner and the shareholders are just financial backers?
There were a bunch of people that put in equity for HRP. Goodwin and company were the managers. They had very little sweat equity but they basically worked for the owners. The two partial owners of FPI that also are involved in FPIs ownership got screwed in the bankruptcy but think this themepark idea will work so they doubled down.
Your post was funny.
Posted by: trvmansux | May 19, 2009 at 02:58 PM
Nope, I know the difference. I can give money to a company, in the form of a loan, in the hopes that I receive a profit. Doesn't make me an owner, partner, silent partner, unless I specify that as a stipulation for me handing money over. It's called "investing." Doesn't make an investor an owner though in the sense that I'm now one of the faces of the company like Goodwin is/was.
Posted by: Nick | May 19, 2009 at 03:06 PM
And really, you shouldn't take the lord's name in vain. Some "bible belt" this is. You're just substituting initials for the words. Which is worse. You know it's wrong, enough to substitute it, yet you still say it. Can't plead ignorance come judgment day.
Posted by: Nick | May 19, 2009 at 03:08 PM
Ok. That's called being a lender. And the HRP lender received $0.625 cents for each dollar that they loaned HRP after the bankruptcy sale. The "profit" you receive as a lender is called interest. And its not profit until you pay all of your bills, till then its just revenue.
Also, "Investing" as you put it can be in debt (I loan you money and expect to get back principal and interest) or equity (I give you money and get to make decisions for the company either explicitly or by selecting management and get to participate in profits AND losses).
Let me tell you, if you give someone money to build something and its not a loan, you're an owner.
I know that God will forgive me when I ask for forgiveness. He loves me that much. John 3:16.
Posted by: trvmansux | May 19, 2009 at 03:19 PM
It all sounds like sour grapes on Goodwin's part to me.
Posted by: Cherie | May 19, 2009 at 03:39 PM
I think these Guys are as Dumb as Rhodes and City Council...
Posted by: MagicMixR | May 19, 2009 at 04:09 PM
Frivolous lawsuits are alive and well in the US. You can see it in this lawsuit as well as the lawyer ads every day on TV.
Posted by: BillWhite | May 19, 2009 at 05:36 PM
This is a joke, right? Goodwin and his buddy should be rotting in jail for the fraud they have perputrated. They scamed everyone and now their just plain trying to steal. Their a couple of bums and con men.
Posted by: ttom | May 19, 2009 at 05:58 PM
I think the judge should give the intellectual properties to Goodwin, but he should remove everything he owns from FMP. For each day he failed to remove from the day of the ruling, he should pay FMP at least $100000/day storage fee.:-)
Posted by: coastalbulldog | May 19, 2009 at 06:16 PM
If any intellectual was viable HRP would have still be here. His intellect lost money as well as his mind.
Posted by: Captain | May 19, 2009 at 07:03 PM
More BS from HRP! This is ridiculous. HRP Execs need to suck it up and move on. Leave FMB alone, at least they have a chance at being successful with HRP's screw up.
Posted by: Casey | May 19, 2009 at 11:54 PM
If this goes through, just wait until any other properties in MB or Horry County go on an auction block. "The idea for the lazy river was mine so...." B&C will end up owning everything back it sold. On a home it is called Title insurance, don't know if it exists in this but the bank may end up owning the park again to never be sold
Posted by: Mike | May 20, 2009 at 12:04 AM