Cody Rhodes, WWE, And Fanatics Facing Legal Action

Cody Rhodes, WWE, and Fanatics are facing legal action from Wesley Eisold.

Lead singer and founder of the band American Nightmare Wesley Eisold has filed a lawsuit against Cody Rhodes, WWE, and Fanatics alleging trademark infringement, breach of contract, and intentional interference with contractual relations.

Eisold holds the trademark for “American Nightmare” for use in music, clothing, and entertainment services and has done so since 2016. In 2019, Rhodes attempted to trademark the phrase for use in wrestling, but the filing was opposed by Eisold.

The two sides eventually reached a settlement in 2021 where “Eisold consented to Runnels’ registration of “The American Nightmare” in connection solely with class 41, i.e., entertainment services.”

As part of the settlement, Rhodes was allowed to use “The American Nightmare” on merchandise on the condition it featured his name, likeness, or wrestling imagery 75% bigger than any “American Nightmare” text.

You can find excerpts from the filing below.

Runnels attempted to register the trademark “The American Nightmare” (“Runnels Mark”), which Eisold opposed. The two then entered into a settlement agreement.

Eisold allowed Runnels to use (but not register) the Runnels Mark in clothing and apparel on the express condition that the only clothes and apparel that Runnels was allowed to sell had to prominently feature Runnels’ name, Runnels’ name and likeness, or significant indicia of wrestling—which must be 75% or larger than the Runnels Mark.

In exchange, Rhodes made a one-off payment of $30,000 to Eisold. However, Eisold now claims that Rhodes, WWE, and Fanatics have breached this agreement. The filing alleges that the defendants “blatantly violate” the original agreement.

Runnels, WWE, and Defendant Fanatics Holdings (“Fanatics”) sell clothes that blatantly violate the express conditions in the settlement agreement and Eisold’s trademark (“Runnels clothes.”) The Runnels clothes are brandished with the words “American Nightmare” but do not include Runnels’ name, his name, likeness, or indicia of wrestling (or do so in puny fashion).

The counterculture style clothes often feature a winged skull embossed with the stars and stripes (“Runnels Logo”), a black-and-white winged skull, or various representations of the U.S. flag

You can find a picture of the “crown” t-shirt referenced in the suit below.

Eisold contends that several pieces of Cody Rhodes clothing and apparel feature the phrase “American Nightmare” without a reference to Rhodes’ name or likeness. Furthermore, the suit suggests there is often confusion between fans of the band and Rhodes.

Widespread confusion about Runnels’ use of the Eisold Mark persists among WWE fans and Runnels’ fans. Legions of American Nightmare fans ask Eisold if he endorses Runnels or the wrestler’s use of the Eisold Mark and his image.

Eisold’s fans frequently buy the Runnels clothes by accident, Runnels’ fans regularly buy the Eisold clothes by mistake, and fans of both inadvertently make and purchase apparel that mix references to both the band and to Runnels.

Wesley Eisold Seeking Damages From WWE, Cody Rhodes And Fanatics

Eisold alleges that his legal team contacted Cody Rhodes’ lawyer in 2022 about a specific crown t-shirt but didn’t get a response. This was followed by cease and desist letters sent to Fanatics in April 2024, and Rhodes in May 2024. Eisold says that his attorney received a letter from WWE on May 31st after Fanatics referred the issue to the company.

Eisold is seeking damages of at least $150,000, and treble damages of up to $300,000 relating to trademark infringement plus legal fees.

In the ring, Cody Rhodes is flying high after retaining his Undisputed WWE Title with a win over Kevin Owens.