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Lloyd's Maritime and Commercial Law Quarterly

A NEW MODEL OF CONTRACTUAL COMPENSATION

World Wide Fund for Nature v. World Wrestling Federation

WWF-World Wide Fund for Nature v. World Wrestling Federation Entertainment Inc 1 is the latest in a series of decisions concerning the right to use the initials “WWF” (“the Initials”). The activities of the disputants were patently incongruous; the claimant (the “Fund”) was a well-known charity engaged in a wide range of environmental conservation, while the defendant (the “Federation”) organized and promoted live wrestling matches. Anxious to avoid any injurious association that might arise from the Federation’s usage of the Initials, the Fund embarked on aggressive actions to impede such usage. In 1994, the parties entered into a settlement agreement (“the Agreement”) which severely restricted the Federation’s right to use the Initials worldwide. Subsequently, the Federation committed numerous breaches of the Agreement, against which the Fund successfully obtained injunctive relief as well as an order for damages to be assessed; but the trial judge rejected the latter’s application to amend its pleading (relying on Attorney-General v. Blake 2 ) to seek an account of the profits which the Federation derived from the infringing use of the Initials.3 More than three years elapsed before the Fund enforced the order to assess damages. At this stage, it sought, for the first time, for damages to be determined on the basis of Wrotham Park Co Ltd v. Parkside Homes Ltd .4 The decision now under consideration dealt with the preliminary issue as to the Fund’s entitlement to seek damages on this “novel” ground. Peter-Smith J found that the Fund’s pleadings were insufficient to establish any entitlement to this measure of damage,5 but it could seek an inquiry of damages on this basis.6 In laying down the guidelines for assessing damage, the learned judge undertook a scrupulous analysis of the line of authorities subsequent to Wrotham Park . This Comment examines the impact of these guidelines in elucidating this “new” remedial principle.


CASE AND COMMENT

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