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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.

  1. 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.
  2. Plaintiff has the exclusive right to control the commercial value and exploitation of the aforementioned assets.
  3. Pauline Hailwood has guarded the manner in which Mike Hailwood's name has been shown the public.
  4. 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).
  5. 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".
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

  1. 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.

  1. 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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