Vol. 2, No. 18
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July 15, 2005
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CRIMINAL DEFENSE |
COPYWRITING
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Top News Story:
Court Battle Looms Over Controversial Advertising Phrase And Who Owns It
T-Shirt Makers Looking To Be Part Of Battle; Forgetting Alleged Illegality Of Phrase Sale
by Johnny Gunn
Advertising and promotional phrases are generally covered and coveted as registered trademarks because they, in few but concise words, explain and describe a product, whether that product is a place as in Las Vegas or an item as in peanut butter. One would think someone attached to the largest tourist promoting association in Nevada would have some understanding of the financial potential of a trademarked phrase. Show big black ears and Disney will track you around the world to get their fair share.
The Las Vegas Convention and Visitors Authority (LVCVA) hired in a "work for hire" situation, R&R Partners advertising and public relations company to create the phrase "What happens here, stays here." LVCVA failed to trademark the phrase, and then in possibly the smoothest alleged move ever made under the table, sold the phrase back to R&R for one dollar U.S. Billy Vassiliadis did not become the State's leading advertising and public relations guru by being dumb. R&R Partners immediately began the trademark program.
That's only part of the problem at this time. The question being asked most often around the state is whether or not LVCVA had the right to sell the phrase. Many believe since R&R was paid from tax money that the phrase is in the public domain and can be used by anyone. One person who thought that way is Dorothy Tovar of California. She makes T-Shirts with the phrase "What Happens in Vegas, Stays in Vegas!" plastered about.
And began lawsuits. R&R is suing Tovar for trademark infringement and is including LVCVA in the suit. That suit will be heard in a Reno District Court. LVCVA has now hired its own law firm, Morrison & Foerster, out of San Francisco to defend and investigate the entire matter. The question being asked right now is, who is investigating whom? If the Clark County D.A. is reading this, can he spell Grand Jury?
Many are alleging that LVCVA president Rossi Ralenkotter conspired to dupe the board of directors and arranged for the sale of the phrase to Vassiliadis. According to Las Vegas Mayor Goodman, who himself has used the "...Stay in Vegas" phrase many times, Morrison and Foerster will conduct a thorough investigation of the entire matter.
Until that is complete the Mayor says, he has instructed the board of directors of LVCVA not to discuss the matter. At a board meeting on July 12, Goodman denied floor access to both Ralenkotter and Vassiliadis.
In the meantime, that trademark infringement suit might be expanded some. Las Vegas columnist and former City Council member Steve Miller has announced a new line of tourist souvenirs, something he is very familiar with. You guessed it; the T-shirts are to be adorned with the phrase "What happens in Vegas, stays in Vegas." Miller designed and sells the Casino Dice Clock among other souvenir items. He said he fully expects to be included in the R&R proceedings.
Miller says, "The slogan was paid for by the taxpayers, and therefore is public domain." He plans to offer a portion of the proceeds to the Nevada Council on Problem Gambling.
As with most government bodies that deal with taxes and taxpayer money, the LVCVA board of directors is made up of elected officials in the Clark County area along with tourism leaders from the casino and hotel industry. Goodman said, "We intend to take whatever action is required to show that the authority, we who are elected and appointed to this authority, are good stewards of the public's assets."
It was in November 2004 that Ralenkotter brought a group of suggestions to the board of directors, and according to many, hidden in the group was authorization for him to sell the phrase. When the sale was announced most of the members of that board were taken by surprise.
It seems strange that there hasn't been a single voice on the board or from any of the government agencies in Clark County asking for a Grand Jury investigation. Public money, that is taxpayer assets, have been squandered in this sale, say many. For Goodman to believe that a law firm hired by LVCVA will actually come to some conclusion not in the best interests of LVCVA is naive at best.
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