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GENERAL
BACKGROUND ALLEGATIONS COMMON TO ALL CAUSES OF
ACTION
Michael Bailey
Hailwood, M.B.E., G.M. ("Mike Hailwood") was one of
the best known and most widely admired motor sports
figures of the last half of the 20th century. Mike
Hailwood has been called the best racer ever, the
Babe Ruth of motorcycle racing. He is a sports
legend and a folk hero. One of motorcycle racing's
most recognizable racers. A ten times world
motorcycle champion, he was voted "Motorcyclist of
the Millennium" by motorcycle publications "Motor
Cycle News" of Britain and "Motociclismo" of Spain.
In July 2000, he was inducted into the American
Motorcyclist Associations Motorcycle Hall of Fame.
That same month, he became the first British rider
to be inducted into the prestigious Grand Prix Hall
of Fame in Donington Park, England. He received the
George Medal, Britain's highest medal awarded to
civilians for bravery, for his heroic rescue of
Clay Regazzoni who was trapped in his car, engulfed
in flames, after crashing at Kyalami [South
African F1 Grand Prix] in 1973. In addition, he
is the subject of at least seven books, including
the recently published, Mike Hailwood: A Motorcycle
Legend, by Mick Woollett (Haynes). He is perhaps
best remembered for his fairytale 1978 comeback
[from retirement] to win the Isle of Man
T.T., and with it, his 10th World Championship.
Mike died tragically in Birmingham, England along
with his daughter Michelle on 23rd March 1981 in an
auto accident. He has been described as an icon of
racing, just as James Dean and Marilyn Monroe are
icons of pop culture.
11. Due to his
illustrious career and achievements, Mike Hailwood
remains motorcycle racing's most durable and
revered legend even after his death.
12. Mike Hailwoods
achievements and reputation for integrity, have
significant, exploitable, commercial value in the
United States of America and throughout the
world.
- Mike Hailwood
tragically and unexpectedly died on March 23,
1981. His death precipitated an unprecedented
outpouring of public grief in the United
Kingdom, United States and the world. His
assets, including the rights to his name,
likeness, image and marks, passed by will to his
Estate which was overseen by his widow, Pauline
Barbara Hailwood, and which passed to his widow,
Pauline Barbara Hailwood, the Plaintiff in this
action.
- Plaintiff has
the exclusive right to control the commercial
value and exploitation of the aforementioned
assets.
- Pauline
Hailwood has guarded the manner in which Mike
Hailwood's name has been shown the
public.
- Plaintiff, on
behalf of the Estate of Mike Hailwood and as
successor to the Estate of Mike Hailwood, has
filed two federal trademark applications in
various classes for "Mike Hailwood" with
priority dates of May 3, 2000 (Serial No.
78039467) and December 2000 (Serial No.
78006581).
- Plaintiff, on
behalf of the Estate of Mike Hailwood and as
successor to the Estate of Mike Hailwood, has
granted exclusive licenses, subject to certain
reservations, to the name and likeness of Mike
Hailwood and to Mike Hailwood's initials
"MH".
- Plaintiff has
engaged the services of a licensing agent who
resides in and is located in the State of New
Jersey to obtain licenses for the name and
likeness of Mike Hailwood.
- Defendants are
currently using or intend to use Mike Hailwood's
name and/or his initials, likeness and
biographical information in connection with the
advertising, sale, marketing and promotion of
motorcycles within the United States of America
and within the State of New Jersey and elsewhere
without authorization of Plaintiff.
- Defendants have
introduced in the stream of commerce and sold,
exclusively via the "internet", a limited
edition, hand-made motorcycle named the "MH900e"
&endash; or "Mike Hailwood Evoluzione" -- and
have used Mike Hailwood's name and likeness in
promotional and marketing materials in
connection with the sale and distribution of the
aforesaid motorcycle all without the permission
or consent of Plaintiff. A true copy of exemplar
advertising for the MH900e is annexed hereto as
Exhibit "A" and incorporated herein and made a
part hereof by this reference.
- Upon
information and belief, the Defendants have
utilized Mike Hailwood's name, initials and
reputation to sell motorcycles and to both
enhance the reputation of Ducati motorcycles
generally and to maximize sales of the MH900e
motorcycle in particular and to maximize their
own profits.
- The Defendants
are advertising and selling or intend to
advertise and sell the MH900e motorcycle (the
"Motorcycle") throughout the United States of
America in an effort to profit from the use of
Mike Hailwood's name, initials and/or
reputation.
23. In the
advertising, promotional and press materials for
the Motorcycle, copies of which, as an example, are
annexed hereto as Exhibit "B", Ducati states that
"somewhere Mike Hailwood is smiling
and
shifting his Ducati into 6th gear."
Mike Hailwood's
name is also prominently used in connection with
the MH900e in
other ways as well,
for example the video presentation created by
Defendants as a marketing device for the MH900e
Motorcycle which references Mike Hailwood's
championship record, a copy of a still frame of
which is annexed hereto as Exhibit "C".
25. Defendants have
willfully deceived the public by referring to (and
marketing) the MH900e as a replica, or copy of a
classic motorcycle.
26. Despite the
prominent use of Mike Hailwood's name in connection
with the
MH900e Motorcycle,
the Motorcycle cannot be truthfully said to be a
"replica" of Mike Hailwood's motorcycle. The MH900e
contains no shared components with the Mike
Hailwood Replica.
27. Plaintiff first
learned of Defendants' use of Mike Hailwood's name
in connection
with a prototype of
the motorcycle, described as an "experiment" by
Defendants in or about October 1999, at which time
Defendants represented that they had no intention
of selling or marketing the Motorcycle or producing
it as a "production model" for sale to the
public.
On or about July
12, 1999, before Defendants announced the
production of the
MH900e, Plaintiff's
business manager contacted Ducato North America and
DMH regarding joint licensing and marketing
opportunities, including in-part sponsorship of the
"official Mike Hailwood Website"
(www.mikethebike.com). Plaintiff's correspondence
contained conspicuous trademark notices asserting
rights in the "Mike Hailwood" and "Mike the Bike"
trademarks.
29. Notwithstanding
Defendants' representation that the Motorcycle was
not going to
be produced as a
"production model" for general sale to the public,
Defendants offered the MH900e Motorcycle for sale
exclusively via the Internet at www.ducati.com on
or about January 1, 2001. On information and
belief, within approximately 31 minutes, the first
years' production of 500 units sold out on or about
January 1, 2001 and over the next approximately
three weeks, another 1,500 units were sold
exclusively via the Internet at
www.ducati.com.
30. Thereafter,
after learning of Defendants' Internet sale of
2,000 units of the Motorcycle, Plaintiff publicly
and in the context of a widely-circulated
syndicated column, objected to Defendants' use of
Mike Hailwood's name, initials, likeness and
biography in connection with the advertising and
sale of the Motorcycle.
- Plaintiff, by
and through her agents, specifically by her
licensing agent, has repeatedly requested that
the Defendants stop manufacturing and selling
the Motorcycle in the United States of America
and elsewhere.
- Notwithstanding
Plaintiff's requests, Defendants have, by and
through their attorneys, advised Plaintiff that
they have no intention of stopping the
manufacture or shipment of the Motorcycle into
the United States or elsewhere, and Defendants
continue to manufacture, sell, advertising and
promote the Motorcycle in the United States of
America through Ducati's website at
www.ducati.com and elsewhere.
- On information
and belief, at present, only eight MH900e
Motorcycles have been delivered by Defendants to
United States distributors and there are pending
orders for approximately 800 Motorcycles to be
distributed to the United States.
- Defendant DMH
did not seek permission from the Plaintiff to
use Mike Hailwood's name, initials, likeness or
reputation in connection with the MH900e
Motorcycle. Having failed to obtain consent to
use Mike Hailwood's identity and trademarks,
Defendant DMH simply stole them and embarked on
a campaign to profit from Mike Hailwood's name,
identifying characteristics and
reputation.
35. On or about May
29, 2001, notwithstanding Plaintiff's requests,
Defendant DMH shipped the first eight of
approximately 800 Motorcycles to Ducati in the
United States for distribution throughout the
United States.
- On information
and belief, those Motorcycles were shipped to
Ducati at its place of business in New Jersey
and currently remain in New Jersey.
36. The Motorcycles
themselves use Michael Hailwood's initials and,
therefore a derivation of his name, and defendants'
advertising and promotional materials use Mike
Hailwood's name and reputation to sell the
Motorcycles.
37. Defendants have
willfully, intentionally and deliberately used Mike
Hailwood's name, likeness, personal characteristics
and reputation to sell the Motorcycles and to
increase their profits.
38. Defendants have
knowingly, willfully and deliberately used Mike
Hailwood's name, likeness, personal characteristics
and reputation for the purpose of promoting the
Motorcycles.
39. Defendants'
actions also imply that Plaintiff endorses,
sponsors or promotes the Motorcycle and/or
Defendants themselves.
- On information
and belief, Defendants have informed certain of
their dealers that they have an agreement with
Mike Hailwood with respect to the use of Mike
Hailwood's name in connection with the
Motorcycles, which announcement was false and
which falsely implied that Plaintiff endorses,
sponsors or promotes the Motorcycle and/or
Defendants themselves and/or their
products.
41. Defendants have
attempted to benefit from and, have in fact,
benefitted from the
goodwill associated
with Mike Hailwood's identity to sell the
Motorcycles and ancillary products, such as books,
videotapes, and licensed merchandise.
42. Defendants have
attempted to conceal their own motive to benefit
from Mike Hailwood's name and reputation by falsely
and misleadingly implying an endorsement,
association or affiliation with Mike Hailwood by
holding themselves out as manufacturing and selling
the Motorcycle as a tribute to Mike
Hailwood.
43. The Defendants
have wrongfully, knowingly, and without
justification appropriated Mike Hailwood's name,
likeness and reputation for a commercial purpose
and for the sale of commercial products in
interstate commerce.
44. Defendants have
been unjustly enriched and Plaintiff has been
damaged in that Mike Hailwood's name, likeness,
identifying characteristics and/or reputation have
been used by defendants without Plaintiff's consent
or permission, and have been appropriated by and
associated with the Defendants and their products
and has been unlawfully usurped.
45. By reason of
Defendants' actions, Defendants have received
substantial monies and other benefits which
rightfully belong to Plaintiff.
46. Defendants'
deliberate misappropriation of Mike Hailwood's
name, likeness, initials, identifying
characteristics and/or reputation has damaged the
reputation of Mike Hailwood and of Plaintiff and,
as a result, Plaintiff's rights of publicity have
been damaged in that Mike Hailwood's name,
initials, likeness, identifying characteristics
and/or reputation have been wrongfully associated
with Defendants and with a product which neither
Mike Hailwood nor Plaintiff have ever
endorsed.
47. The acts of
Defendants were wanton, willful, malicious and
oppressive in that they have knowingly sought to
enrich themselves unjustly at the expense of the
rights of Plaintiff.
48. As a result of
the foregoing, Plaintiff has been
damaged.
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