Source: Wrestling Observer Newsletter
The Scott Levy (Raven)/Marcus Bagwell lawsuit against WWE, claiming that talent should be paid royalties for WWE Network appearances, was slightly amended. The basics of the suit is the plaintiff argument they deserve royalties while WWE claiming that its contracts state performers are allowed royalties from things that are direct sales to the consumers, such as purchasing a PPV, merchandise, videotape, etc., but that the network does not fall into that category. Levy is arguing that his contract stated WWE would pay royalties on “video cassettes, videodiscs, CD Rom or other technology, including technology not yet created.” He’s claiming that streaming technology falls under that umbrella. WWE is arguing that there is no physical product being sold to a consumer, and it’s only the company granting a license to watch material if they have an active subscription. That becomes because PPV, where they have historically paid royalties, is similar in scope, not a physical product but a license to watch material if you order it. Levy is suing claiming the royalty rate for talent on DVD’s or PPVs should be used to calculate royalties talent deserves when appearing on the network