Thursday, August 10, 2006

The Las Vegas Convention and Visitors Authority board said Tuesday it will
formally oppose a local drug company's quest to trademark the phrase "What
happens in Vegas does not always stay in Vegas." Samaritan Pharmaceuticals
last summer applied to federally register the phrase to promote its
research-stage medical products, as well as Southern Nevada's biotech
industry. Because Samaritan's phrase is similar to the "What happens here,
stays here" slogan used by the authority, however, board members authorized
legal counsel Luke Puschnig to take action against Samaritan. The authority
has spent nearly $115 million to promote "What happens here, stays here" on
a national level, and several board members were incensed last month when
told of Samaritan's application, largely because the company's research
reportedly involves treatment for AIDS patients. Authority leaders worried
that widespread public exposure to Samaritan's slogan could imply that
visitors who indulge in sexual activities in Las Vegas will be infected with
a deadly disease. Samaritan Chief Financial Officer Eugene Boyle contends
his company's trademark applications would highlight that efforts are under
way to develop life-saving drugs in a place known largely for its casinos.
Authority executives recently met with Samaritan to discuss potential
compromises, but Puschnig said Tuesday the company refused to withdraw its
applications. In a written statement, Samaritan president Janet Greeson said
her company offered to assign its trademark, if federally approved, to the
authority in exchange for a license to use "What happens in Vegas does not
always stay in Vegas" in upcoming ads.
But Puschnig told the board his staff believes any outside uses would be
"detrimental to the destination."

The fight will now shift to the United States Patent and Trademark Office in
Washington, D.C., where Puschnig said legal costs associated with the
trademark challenge could approach $100,000.

Samaritan was formed 12 years ago and became a public company in October
1997. It employs 10 people locally at its headquarters on Convention Center
Drive, less than a mile from the authority's offices at the Las Vegas
Convention Center.

Multiple local critics dismissed Samaritan's application as a publicity
stunt by a company that has reported losses of nearly $35 million since its
inception, according to documents filed in May with the Securities and
Exchange Commission.

No Samaritan product has been approved for commercial production, SEC
documents show.