Update on WWE & Muscle Flex’s RAW Trademark Dispute

– Muscle Flex sent out the following press release today in regards to their legal battle with WWE over “Raw” labeled products that it believes infringe on the Muscle Flex Inc. “In the Raw” trademark:



Muscle Flex Inc. Identifies Specific Items of WWE “Raw” Labeled Products It Believes Infringe on the Muscle Flex(R) “In the Raw(R)” Trademark Marketwire

LOS ANGELES, CA — 07/20/09 — Muscle Flex Inc. (PINKSHEETS: MFLI) announced that it has acquired and identified a number of World Wrestling Entertainment’s (WWE) “Raw” labeled products that it believes infringe on the Muscle Flex Inc. “In the Raw®” trademark wares and services in Canada as defined by the final April 22, 2009 Federal Court and the June 18, 2008 Canadian Intellectual Property Office (CIPO) Opposition Board ruling (“Raw” trademark application 1,153,018). The “Raw” / “In the Raw®” trademark dispute was concluded in April of 2009.

The WWE “Raw” labeled items include various CDs, VHS tapes and a number of apparel items. According the WWE’s most recent reported financial quarter, combined sales of WWE’s consumer products and digital media business segments produced $40 million in global revenues. In previous quarters, these numbers were even higher. “We are now measuring the specific potential damages the WWE has created over the years, including lost merchandising and licensing revenues of our ‘In the Raw’ brand in Canada,” commented Danny Alex, CEO of Muscle Flex Inc. “Muscle Flex believes that it can provide definable evidence that the WWE procured the sale and distribution of ‘Raw’ labeled products which infringe on the ‘In the Raw®’ wares and services that Muscle Flex Inc. legally has full and exclusive rights to use.”

Danny Alex added, “We are now in a position to expedite our plans for our ‘In the Raw’ branded product line.” As part of its trademark victory, Muscle Flex Inc. previously announced it is moving forward with developing a diversified portfolio of “In the Raw®” branded merchandise. ‘In the Raw’ products that are planned include multiple lines of apparel such as caps, T-shirts and workout wear as well as extreme sports, reality-based videos and related music. Future products will be marketed through direct response media as well as traditional retail distribution channels.

The multi-year dispute concluded this year in favor of Muscle Flex Inc. which successfully defended its “In the Raw®” trademark against WWE “Raw” trademark application 1,153,018 in a final Federal Court appeal by the WWE. Previously, on June 18, 2008, the Canadian Intellectual Property Office (CIPO) Opposition Board issued its final decision with respect to the WWE Canadian trademark application for “RAW.” The ruling confirmed that certain wares listed in the RAW trademark application 1,153,018 were confusingly similar and thus lacked distinctiveness from the “In the Raw®” registered trademark, which is expected to be acquired by Muscle Flex later this month.

For additional detailed information regarding the “In the Raw®” trademark and details on the Federal Court and CIPO ruling, please visit our corporate website at www.MuscleFlexInc.com.

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