Encore nightclub’s name at center of trademark lawsuit

By Steve Green

Tuesday, July 14, 2009 | 12:44 p.m.

A dispute has erupted over rights to the trademark "XS" -- the name of a luxury nightclub at Steve Wynn's Encore casino resort in Las Vegas.

Wynn Resorts Holdings LLC filed suit Monday against NYLO Hotels of Atlanta, an operator of boutique hotels, after NYLO asserted rights to the trademark and offered to let Wynn pay a licensing fee for use of the XS name at Encore.

"Wynn has spent a significant amount of time, resources and money in developing and promoting a restaurant, bar, nightclub and indoor and outdoor entertainment venue at Encore under the XS mark," said the lawsuit, filed in U.S. District Court in Las Vegas.

"Wynn maintains that its use of the XS mark is lawful and does not infringe upon the rights of NYLO," said the suit.

Correspondence between attorneys for Wynn and NYLO attached to the lawsuit indicates NYLO intends to offer services using the XS mark, and begin franchising on the mark, including in Las Vegas.

"Please note that although an 'XS' hotel has not yet opened, NYLO is extremely sensitive to the use of the 'XS' mark because of the time, resources, money and public discussions it has had concerning the brand," said a May 28 letter to one of Wynn's attorneys from NYLO attorney David Rogers.

Rogers indicated a willingness by NYLO to license the name to Wynn for use at the club. Encore describes it as a "decadent vibe" poolside nightclub.

A request for comment on the lawsuit was placed Tuesday with NYLO, which says it operates two boutique hotels in the Dallas area and a third in the Providence-Warwick, R.I., area.

Wynn's suit was filed by attorneys Mark Tratos and Peter Ajemian of the Las Vegas law firm Greenberg Traurig LLP.