‘Sin City’ on sale — for $666,000

Dan Kulin

Tuesday, Dec. 14, 2004 | 10:55 a.m.

"Sin City" is for sale on eBay, with the bidding starting at the devilish price of $666,000.

The owners of the Sin City trademark for clothing are trying to sell their rights to the Las Vegas nickname on the Internet auction site. But some local trademark attorneys said it probably isn't worth so much. That's because they believe putting the words "Sin City" on the front of clothes might not be protected by a trademark registration.

The owners disagree, with the argument boiling down to whether a judge would believe the words "Sin City" to be a brand name or merely a decoration that simply describes a place.

If the words are a brand name, like Nike or Burger King, then to legally use "Sin City" on any clothes would require the permission of the trademark's owners. Otherwise, the trademark would protect only the use of the phrase on clothing labels.

"Las Vegas has been known as Sin City forever, but because they have a piece of paper from the government they have something to put with a threatening letter from their lawyer," said John Lambertsen, a Las Vegas attorney who specializes in trademark and patent law.

But one of the trademark owners, Steve Varasteh, said he thinks they have turned Sin City into a brand, "like Budweiser or Nike."

"We got into it a long time ago when Las Vegas was promoting it as family time," Varasteh said. "When we did it nobody wanted anything we were selling ... When we picked up Sin City we were the only ones doing it. Vegas had a nickname that was used, but it wasn't exploited."

Either way, one of the city's top cheerleaders isn't interested.

"Sin City no, but Sun City maybe," Las Vegas Mayor Oscar Goodman said.

Varasteh, president and majority owner of AKA Sportswear, and his business partner David Babiarz registered the name Sin City for use on clothes with the U.S. Patent and Trademark Office in 2002. Varasteh said his Tuscon, Ariz.-based company has contracts with 12 to 14 companies that they have given permission to use "Sin City" on T-Shirts and other clothes. His company, which also produces some clothes bearing the nickname, brings in about $110,000 to $140,000 a year thanks to the Sin City trademark, Varasteh said.

Varasteh said they paid $325 or $425 for the trademark, and now want to sell it to raise money for a planned launch of trademarked merchandise with a college or university theme, such as nicknames for a school's fans or sports team.

The company, on the Internet at www.akasportswear.com, already deals in several sports-related clothing lines, and Varasteh said they have more than 100 registered trademarks.

If Sin City doesn't sell on eBay, Varasteh said he will try to sell the trademark through trade magazines. As of late Monday no one had bid on the Sin City trademark in the auction set to end Friday.

Robert Morishita, a Las Vegas attorney who specializes in trademarks, copyrights and patents, said the Sin City trademark probably doesn't legally prevent others from putting Sin City on the front of T-Shirts and hats.

"If you went out and put Nike on T-shirts you'd be in trouble because that's associated with a specific company," Morishita said.

But he said Sin City is descriptive, it's a nickname for Las Vegas, and is a common phrase.

"What he's really got a right to is to put Sin City on the tag, but not the front of the shirt. The front of a shirt is decoration," he said.

Lambertsen said if the case went to court, the owner of the trademark registration would be at an advantage because those arguing the trademark didn't apply would have to show the trademark shouldn't apply to what's on the outside of clothing.

"They have a big stick, but it's not a complete shield," Lambertsen said about the trademark owners' power to prevent -- or scare -- others from using Sin City.