STAFF REPORT Date: January 15, 2014 To: Mayor and City Council Thru: Andrew Clinger, City Manager Subject: Staff Report (For Possible Action): Update, discussion and potential direction to staff regarding licensing program for the use of "The Biggest Little City in the World" slogan and the Reno Arch. From: Alexis Hill, Special Events Program Manager Summary: In 1999, the City of Reno registered the slogan “The Biggest Little City in the World” as a service mark with the State of Nevada. In the 14 years of maintaining this protection, the slogan has been requested and licensed correctly just four times. Nevertheless, the mark is being utilized in a greater capacity by merchandisers, souvenir shops and other businesses throughout the City without permission from the City of Reno. Per Council direction, staff was asked to research the best practices on how other cities control their brand (e.g. New York Apple, Dallas Big D) and whether the Council should set parameters regarding the cost and use of the City's mark. After researching best practices and evaluating our brand value, staff recommends that the City Council create a licensing program. By protecting and managing the use of the brand, the City can defend itself against “Trademark Dilution”, a legal concept giving the owner of a trademark standing to forbid others from using that mark in a way that would lessen its uniqueness or bring a negative perception association. The recommended licensing program initiatives are: The recommended program should not dissuade businesses from utilizing the mark with exorbitant fees or difficult applications. The recommended program gives the City the flexibility to correct any debasing of the brand and is not envisioned to require an exorbitant amount of time enforcing the use of the mark. The overall intent of the program is to protect the brand in the best interest of the residents of the City of Reno. Previous Council Action: In September 1999, a service mark for “The Biggest Little City in the World” slogan and logo was secured with the State of Nevada, per Council direction. The City of Reno has renewed this service mark protection annually ever since. (Attachment C) On April 3, 2013, the Council approved a License Agreement between the City of Reno and Circus Casinos, Inc. regarding the licensing and sale of plastic drinking containers featuring the Reno Arch and the slogan, "RENO-THE BIGGEST LITTLE CITY IN THE WORLD". Council also gave staff direction to look at what other cities have done to allow commercial interests to utilize their services marks and put together a service mark program. Background: The City of Reno has not had a formal process to issue permissions to utilize the mark in the past. However, there are records of the City administratively issuing permission for the mark in 2007 and in 2009. In June 2007, the City of Reno licensed an image of the Reno Arch and The Biggest Little City in the World to Corbis, Inc. for $50.00. The agreement authorized the image to be used in one full page advertisement displayed in the Reno-Gazette Journal Newspaper and 500 ATM screens in the Northern Nevada region for a period of thirty calendar days. In August 2009, the City of Reno licensed the use of the Reno Arch image on a medallion created by the Reno Coin Club for $50.00. At the direction of Council, staff researched various jurisdictions around the country to see what type of programs they had for their iconic images or phrases. Research of Jurisdictional Authorities with Service Mark Licensing Programs: The Las Vegas Conventions and Visitors Authority, NV does not allow licensing of “What Happens Here, Stays Here” and “What Happens In Vegas, Stays in Vegas” for any purpose other than marketing the destination. The reason they do not allow licensing the mark is because they believe it diminishes the effectiveness and would eventually create oversaturation. The City of New York, NY, does not license “The Big Apple" to others but they do license their other municipal brands NYPD, NYFD, DSNY, etc. for merchandising. Their licensing program is run by a Licensing Director. The program has a two tiered system. It starts all licensees’ at an under $8,500 gross revenues plan, which is free from fees and royalties. If they exceed $8,500 in profits from the licensed product(s), they will be moved into a contract with fees and royalties. The City of Austin, TX unofficially uses “Keep Austin Weird.” The mark is owned by a business alliance group; the group allows merchandisers to use “Keep it Weird in Austin” without agreements. The City government isn’t involved in the mark. The Dallas Convention and Visitors Bureau has registered the “Big D” logo and “Big Things Happen Here” tagline. Licensing the use of the registered marks is handled on a case-by-case basis. Since they are promoting the destination, they welcome opportunities that expand their reach. They do monitor and restrict the use of their marks when it doesn’t benefit the bureau or the destination. They do not currently license the marks for commercial use. For example, they would permit an event use “Big Things Happen Here” to bring people to Dallas, but would not permit entities to utilize the logo on a tshirt. Discussion: After researching various jurisdictions around the country and considering the available administrative, legal and departmental resources at the City, it is our recommendation that the City of Reno adopt a service mark program. It is designed as a three-year phased program. Staff recommends this approach because it gives the City a starting point to protect the City brand but it isn’t overly aggressive. The program requests fees for commercial use however, it does not charge for nonprofit use. The program also allows for the City to grow the program and potentially look at replicating the City of New York model that monitors the commercial use of the mark and generates revenue. Year one – 2014: Businesses currently utilizing the City of Reno’s service mark will be identified. They will be sent a letter to register their use of the City’s mark with the City by filling out an application. The application (Attachment A) and agreement (Attachment B) will be free for the first year (2014) and will give the City’s Office of Communications and Community Engagement, the City Manager’s designee an opportunity to review the use and require consistency with our brand standards (Attachment D). Year two – 2015: Once a database of businesses has been collected, staff will begin to charge an annual application fee of $50 for commercial use. Non-commercial (nonprofits) will continue to have no fees for the use. Year three – 2016 and beyond: Staff will reserve the right to collect additional fees and or royalties on businesses utilizing the service mark as the value increases. Financial Implications: None at this time. Legal Implications: The City Attorney’s Office is reviewing the requirements to apply for trademark, copyright, and/or other federal protections. Depending on voluntary compliance, there may be an increase of litigation to enforce protection. Recommendation: Staff recommends that Council approve the licensing program as listed below. In addition, staff recommends that Council support the pursuit of a trademark, copyright, and/or other federal protections for the slogan “The Biggest Little City in the World” and the image of the Reno Arch, to include past Reno Arches and the present ones located on Virginia Street and the image of the Reno Arch located on Lake Street. Proposed Motions: 1) To approve the implementation of a service mark licensing program concerning the use of the signature identity of the “Reno Arch” and slogan “The Biggest Little City in the World” for commercial and non-commercial use. 2) To approve the pursuit of a trademark, copyright, and/or other federal protections for “The Biggest Little City in the World” and the image of the Reno Arches. Attachments: Attachment A - License Application (PDF) Attachment B - License Agreement (PDF) Attachment C - State of Nevada Service Mark (PDF) Attachment D - Brand Style Guide for the City of Reno (PDF)
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