As previously reported, Impact sent a fifteen-page cease and desist letter targeting Matt and Jeff Hardy demanding that they immediately stop using the “Broken” gimmick. Dave Meltzer discussed the legal issues between The Hardys and Impact on the latest installment of Wrestling Observer Radio.
According to Meltzer, Impact believes that they are the owners of the intellectual property and should receive a percentage of the revenue from the “Broken” character moving forward. They aren’t necessarily looking to block The Hardys’ usage of the gimmick as long as they get a piece of the profit.
Basically if The Hardys go to WWE and use the gimmick, Impact wants a percentage of the merchandising royalties. If that is the case, it’s very unlikely WWE would use the “broken” gimmick in the company.