WWE has been hit with a class action lawsuit over WWE Network royalties. The Hollywood Reporter is reporting that former WWE Tag Team Champion Rene Dupree, real name Rene Goguen, filed a putative class-action suit against the company claiming that he and other on-screen talent have not seen any royalty pay from the WWE Network or videos streamed on Netflix.
Goguen says that his booking contract from 2003 granted WWE ownership of intellectual properties connected to him including his ring name, gimmick, costumes, props and themes in return for part of a payout of up to 25% of net receipts to a “pool of wrestlers” for licensed home video releases including video cassettes, video discs, CD ROMs “or other technology, including technology not yet created” for PPV appearances. The lawsuit says that by not paying royalties from the Network, WWE is breaching the contract as it fits the “technology not yet created” part of the contract.
The lawsuit seeks to represent those who signed contracts with WWE from 1980 toi the present and adds breach of fiduciary duty, unjust enrichment and a violation of the Connecticut Unfair Trade Practices Act to the list of alleged wrongs. WWE’s attorney Jerry McDevitt told the site that Goguen signed a contract in 2011 that denies him the ability to bring such a lawsuit. He cited confidentiality provisions in the contract as a reason for not clarifying but said he informed Goguen’s lawyer and that “His response back indicates he did not know about it,” says McDevitt. McDevitt added that any other such claims are likely to be preempted by copyright law, similar to ESPN’s win in their legal dispute with Steve Ray over rebroadcasting footage of his matches on ESPN Classic.
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