“12 Rounds” on DVD, Raw Accused of Trademark Infringement?

Nick Paglino

12 roundsWWE is releasing John Cena’s latest film "12 Rounds" on DVD tomorrow.

Muscle Flex has issued the following press release today:

Muscle Flex Inc. to Fully Enforce Its ‘In the Raw®‘ Brand & Evaluates Trademark Infringement Damages by World Wrestling Entertainment

LOS ANGELES, CA–(Marketwire – June 29, 2009) – Muscle Flex Inc. (PINKSHEETS: MFLI) announced today that it plans to fully enforce and capitalize on its legal rights and Canadian exclusivity for the stated wares and services connected to the "In the Raw®" trademark. Muscle Flex Inc. is in the process of exploring any and all remedies with regards to damages and past trademark infringement by the WWE in connection to their unauthorized use of "RAW" in Canada.

Earlier this year, Muscle Flex Inc. successfully defended its "In the Raw®" trademark against the World Wrestling Entertainment’s (WWE) "Raw" trademark application 1,153,018 in Federal court on appeal by the WWE. Prior, 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 Muscle Flex is completing the acquisition of. The transaction is expected to close in July 2009.

As part of its trademark victory, Muscle Flex Inc. also announced it is moving forward with developing a diversified portfolio of "In the Raw®" branded merchandise. ‘In the Raw’ products planned include multiple lines of apparel, such as caps, T-shirts and workout wear, extreme sports, reality-based videos and related music. Future products will be marketed through direct response media as well as traditional retail distribution.

According to the Sporting Goods Manufacturers Association, the U.S. sporting goods industry is nearly a $70 billion business at wholesale, and fitness gear continued its trend as the #1 equipment category in 2008. "The defense of the ‘In the Raw’ trademark has lasted many years and our victory comes as no surprise," commented Danny Alex, CEO of Muscle Flex Inc. "Now that the appeal process has concluded, Muscle Flex can begin to realize the many lucrative merchandising and future licensing opportunities of our ‘In the Raw’ brand. We also intend to vigorously enforce all of our rights to the Canadian ‘In the Raw’ trademark as well as seek damages and infringement on the unauthorized use of our brand in Canada."

Details of the wares and services for "In the Raw®" can be viewed at www.MuscleFlexInc.com.

About Muscle Flex Inc. (www.MuscleFlexInc.com)

Muscle Flex Inc. brings new products to market using direct response TV infomercials specializing in the health, fitness, wellness and hygiene sectors. As well, Muscle Flex Inc. develops and creates general television content for network and cable television distribution. Muscle Flex’s corporate strategy is to develop new and innovative products for sale and distribution via its proprietary direct response marketing system and the creation of television shows and content.

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Muscle Flex to be materially different from the statements made herein.

Muscle Flex® is a registered trademark of Muscle Flex Inc. All Right Reserved.

"In the Raw®" is a registered trademark of Danny Alex in Canada, All Rights Reserved.

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