Lawyers: Judge rules that previous owners have rights to Hard Rock Park's theme

A federal bankruptcy judge ruled today that some of Hard Rock Park's intellectual property rights still belong to the park's previous owners, who are asking the park's new owners for royalties and a licensing fee, according to attorneys involved in the case.

The $400 million park, which opened in April and closed in bankruptcy in September, was purchased in February by FPI MB Entertainment for $25 million. But Steven Goodwin, the park's former CEO, says the park's overall theme still belongs to a corporation he heads.

In court filings, FPI MBE said the royalty request jeopardized the park's planned Memorial Day opening. An attorney for FPI MBE, though, said the park will still open on time despite the judge's ruling.

Judge Kevin J. Carey read the order during a telephone conference call this afternoon, attorneys said, though the order has yet to be filed. Joseph Gitto, an attorney for Goodwin's corporation, said the ruling indicated that all the park's intellectual property rights were not transferred to FPI MBE along with the park's physical assets.

"Steven put a lot of work into this park as well," Gitto said. "No one's looking to keep this park closed. It's just a matter of working together among the parties to get it opened."

Skip Scott, an attorney for FPI MBE, said the company will make the appropriate changes to the park, such as altering the names of rides and restaurants, to avoid infringing on any of Goodwin's intellectual property rights. But he said it is unlikely that FPI MBE will pay Goodwin any royalties.

FPI MBE said that at best, Goodwin's corporation might own the names of some of the rides.

"Many of the names for the rides and attractions and restaurants would have changed over time in any event, now it's a little bit more of a hurry-up fashion," Scott said. "The park did not get rave reviews for its creative content previously, and there is a concerted effort to change that in any event."

Scott said further legal action could occur in the future.

In court filings, Goodwin maintained that the intellectual rights to the park's overall theme, design and layout belonged to HRP Creative Services Co. He said he transferred the park's intellectual property rights to that corporation from HRP Myrtle Beach Operations, one of the corporations that filed for bankrupcty.

FPI MBE maintained that all the park's intellectual property rights were transferred to them in the court-approved sale order, and that Goodwin waived his intellectual property rights by not objecting to the sale in a timely fashion.