Goodman to attend settlement conference

Dan Kulin

Friday, July 15, 2005 | 10:55 a.m.

Las Vegas Mayor Oscar Goodman and attorneys for the Las Vegas Convention and Visitors Authority plan to attend a July 27 settlement conference for a lawsuit pitting R&R Partners against a California woman accused of infringing on the trademark for the "What happens here, stays here" slogan.

The LVCVA, of which Goodman is chairman, is not a party in the lawsuit, but R&R has filed a motion to add the Convention Authority as a plaintiff in the case against clothier Dorothy Tovar of Placerville, Calif.

Tovar used the slogan "What happens in Vegas stays in Vegas," on risque clothing and has filed motions in the case challenging R&R's standing to bring the lawsuit.

The LVCVA and R&R have come under scrutiny recently over the handling of the transfer of the rights to the slogan, which was developed by R&R for the LVCVA.

In November LVCVA President Rossi Ralenkotter and R&R Chief Executive Billy Vassiliadis signed an agreement that transferred the rights to the slogan to R& R. The agreement was signed the same day the LVCVA board gave Ralenkotter the authority to transfer intellectual property rights, but the agreement with R&R was signed without the board's knowledge.

The agreement gave R&R the rights to any profit or damage awards from litigation involving the slogan. Ralenkotter and Vassiliadis both have said that the agreement was not done for profit but to give R&R better standing to defend the slogan in court.

Goodman has promised a full inquiry into the agreement. Earlier this week the LVCVA board hired the law firm Morrison & Foerster to investigate the tourism bureau's trademark and intellectual property policies, and represent the LVCVA if it became a party in the Tovar case.

The mayor said his understanding is that the judge for the Tovar case has advised that the LVCVA should have representation at the settlement conference. However, it is unclear whether the LVCVA representatives will be allowed to participate in the conference.

The court order lists the case as being R&R vs. Tovar, and does not specifically mention the LVCVA. But the order does say that "If board approval is required to authorize settlement, the attendance of at least one sitting member of the board (preferably the chairperson) is absolutely required."

Tovar's attorney Daniel Ballard said the order does not invite LVCVA representatives to the conference, and said he thinks the reference to a board representative in the document refers to R&R's board of directors.

However, Ballard added that he has not yet decided whether he would want LVCVA representatives to attend the settlement conference, although he said a final decision on the LVCVA's participation would come from the judge.

Goodman and Morrison & Foerster attorney Zane Gresham both said Thursday that they had no comment on the implications of their possible participation in the settlement conference, which will be held in Reno.

Vassiliadis said he thinks the LVCVA will certainly be viewed as an interested party in the case and thinks the mayor will be allowed into the conference. But Vassiliadis said his opinion is based on the fact that Goodman, who is an attorney, and the LVCVA's attorney over this matter plan to attend and so must expect they will be allowed to participate in the conference.

Goodman also said that he will not let the lawsuit further delay an LVCVA board public hearing on the trademark transfer agreement.

On Tuesday Goodman said the hearing will take place after the law firm's investigation into the agreement is complete, but no deadline was given.