Editorial: Scrutiny of slogan deal under way

Friday, July 15, 2005 | 9:32 a.m.

We are encouraged that the Las Vegas Convention and Visitors Authority's board has hired an internationally known law firm to investigate the tourism authority's policies governing trademark and intellectual property rights. The action by the board came after the Las Vegas Sun disclosed that LVCVA President Rossi Ralenkotter had sold to R&R Partners, for $1, the trademark rights to the popular slogan "What happens here, stays here" without the board's knowledge. The slogan is part of the advertising campaign that R&R has developed for the LVCVA. Assigning the trademark rights to R&R, by virtue of the agreement, provided the company with the authority to profit from the licensing of the slogan. But R&R says it had no intention to profit from its ownership of the slogan. Further, R&R and Ralenkotter say that assigning the trademark rights -- and their owners hip -- to R&R would simply allow the advertising firm, which has legal experience in protecting intellectual property right! s, to go to court to stop the unauthorized use of the slogan.

The LVCVA's board also decided this week that the law firm it has hired, San Francisco-based Morrison & Foerster, would represent the tourism authority if the LVCVA joins R&R as a plaintiff in a trademark infringement lawsuit, involving the "What happens here, stays here" slogan, against a clothing maker from California. The cleanest, simplest course to take, and the best one too, is for R&R to transfer the trademark rights back to the board. Indeed, it would have been far better for the LVCVA to have hired outside counsel in the first place instead of relying on R&R to prevent unauthorized use of the slogan. There very well may still be money to be made in licensing T-shirts and souvenirs with the "What happens here, stays here" slogan, an extraordinarily popular catchphrase that is now known worldwide. Any proceeds from such merchandising, which we belie ve the board should explore, could be used to offset some of the $66.5 million that the taxpayer-funded tourism authority p! ays to R&R to promote Las Vegas.