NABC FILES SUIT AGAINST HDNET FIGHTS

Posted on | May 1, 2008 | No Comments

By: Rich Bergeron

Did the North American Boxing Council beat HDNet Fights to the punch on the idea of a “unifying brand for fighters and events” in the MMA industry? That’s the question at the heart of a dispute going on in Marion Superior Court in Indiana between the NABC and HDNet. The NABC complaint filed on March 17th argues that it was actually NABC Attorney Craig Zimmerman who came up with the concept now known as HDNet Fights and not billionaire Dallas Mavericks Owner Mark Cuban.

According to the allegations included in the 15-page filing:

NABC seeks damages in the case amounting to “…all monies derived from HDNet’s unlawful usurpation of NABC’s information and business opportunity.” The NABC complaint also mentions the possibility of recouping not just past HDNet profits from the alleged unauthorized use of the NABC business model but also a royalty from future operations of HDNet Fights.

Claims like the NABC’s are nothing new in the sport of mixed martial arts. One of the first major splinter groups to start anew and compete with the UFC, the IFL, faced an uphill battle in the early going due to numerous alleged threats and damaging statements made by UFC officials that ultimately resulted in a lawsuit brought by the IFL against the UFC, its parent company Zuffa, and Dana White in February, 2006. THE IFL COMPLAINT sought relief for claims that the UFC interfered with a Fox Sports Network contract, made disparaging remarks to other third parties, and also threatened the company with litigation stemming from the departure of two former UFC employees who went to work for the fledgling new team-based fighting organization.

Dana White fired back in an affidavit claiming that former UFC staffers Steven Tornabene and Keith Evans utilized proprietary information taken from the UFC illegally. White charged the two with making off with trade secrets and confidential information before they left their positions at the UFC. The case eventually settled with no public announcement of the terms.

Perhaps the most under-reported allegation of stolen intellectual property revolved around a claim made by Chris Champagne regarding one of the most successful and widely recognized institutions of the UFC: The Ultimate Fighter reality TV series. Fight News Unlimited interviewed Champagne in September of 2007 about his claim of being the one who initially passed the show idea on to Dana White and company.

Zuffa also engaged in litigation against both Showtime and Frank Shamrock after some of Shamrock’s Zuffa-owned footage was used on the network prior to Shamrock’s controversial ELITEXC fight with Renzo Gracie. Shamrock and Zuffa entered into mediation in the case on February 10, 2008. WEC Holdings, LLC also engaged in litigation against Shamrock and other related defendants in a separate case that went into mediation on February 11. That case ended with a settlement agreement that will stay the litigation until May 5, 2008 pending satisfaction of the terms.

Whatever the outcome of the HDNet legal debacle, the company continues to make progress, recently making a deal with DREAM, which was created by the former owners of PRIDE. Judging from past disputes of this nature, the situation will most likely end in some kind of undisclosed settlement. Stay tuned for continuing coverage of this case as it develops.