The WWE created a stir last week when it issued an edict that its talent could not enter inter third-party contracts using their character names.
According to multiple reports, an internal memo stated that WWE performers could no longer use their names to promote individual Twitch or Cameo channels. Performers would use these social media platforms as a way to promote themselves and more importantly use it as an ancillary method of revenue. That is no longer as the WWE is preventing its talent from making this money.
The WWE explained its rationale:
“Much like Disney and Warner Bros., WWE creates, promotes and invests in its intellectual property, i.e. the stage names of performers like The Fiend Bray Wyatt, Roman Reigns, Big E and Braun Strowman. It is the control and exploitation of these characters that allows WWE to drive revenue, which in turn enables the company to compensate performers at the highest levels in the sports entertainment industry. Notwithstanding the contractual language, it is imperative for the success of our company to protect our greatest assets and establish partnerships with third parties on a companywide basis, rather than at the individual level, which as a result will provide more value for all involved.”
Reading between the lines, the WWE is reining in its independent contractors from using the company’s WWE intellectual property for their own use. From an overarching perspective, you can view this as the company getting ready to forge deals with companies like Twitch and Cameo. However, the company has come back to allow its talent to use their own names for third-party comment which infers that this may be just an IP protection issue.
Similar to the UFC doing away with its independent contractors obtaining third-party sponsorships for fight day to make money, the WWE is preventing a benefit to its entertainers – the ability to earn outside of it performing.
AEW made fun of this on its last PPV when Kip Sabian promoted his Twitch channel with company approval.
Obviously, its clear that AEW’s contract with its performers are different. First of all, its likely that the names used by the performers are not owned by the company making it less likely for the Khan Family-owned business to retain any rights in any ancillary revenue they may make. And while some of the performers are employees, I would surmise that the ability to earn money off of the use of the character is allowed by AEW which is likely a reason we see so many independent wrestlers using the name they used on the independent scene rather than changing them upon entering the company.
For the WWE, it is reining in and protecting its own intellectual property. While fans recognize the talent by their performing names, those names are owned by the company as it highlights in its statement. This may not sit well with the company, or even Andrew Yang, but the WWE has framed the issue as not one of employer/employee/independent contractor classification but one of protecting their IP.
If I’m not the Secretary of Labor I’m pretty confident I’ll have his or her number to talk about the ridiculous classification of WWE wrestlers as independent contractors while controlling their name and likeness for years, even for something as benign as Cameo.
— Andrew Yang🧢🇺🇸 (@AndrewYang) September 5, 2020
But from a public relations standpoint, it looks like another way to curb the earnings of its talent. Although independent contractors, there is nothing independent about their work. They cannot go to other promotions, have to obtain approval on character and name with that being trademarked by the company. With a number of talent being let go due to the pandemic, the company was never in any financial distress but wanted to make its balance sheet look better.
Leave a Reply