From the V&T 1976 list:

V&T RRtrademark stuck in negotiation

Businesses have until the end of today to apply to operate
reconstructed rail line

Becky Bosshart
Appeal Staff Writer, bbosshart@nevadaappeal.com
August 22, 2006

Two different Virginia City business owners want the federal
trademark to sell souvenirs for the famous Comstock-era railroad.

The parties are negotiating and, in the end, both of them could win,
said Joe Curtis, one of the applicants and a bookstore owner in the
small tourist community. He has a state corporation and state
trademark for the name "Virginia & Truckee Railway."

"We're trying to figure out how to make it work so that we both have
access to the same logo, but they use railroad and I use railway,"
Curtis said Monday.

The Gray family own and operate the Virginia & Truckee Railroad that
runs from the historic mining town to Gold Hill, which is a two-mile
trip down the hill. They've been making souvenirs for more than 30
years, but have never filed for a federal trademark.

Curtis beat them by about a month, said George Wasson, the Gray
family's trademark attorney. He filed in mid-June a notice in of
opposition to Curtis' application for his trademark. He alleges
that "railway" is too close to their "railroad" and could confuse
customers. The notice halted Curtis' registration of his mark.

When the $40 million tourism project is completed by 2010, the
souvenir income could be substantial. The project is expected to
bolster regional tourism by attracting more than 160,000 visitors a
year.

Though he has never operated a railroad, Curtis has said that his
family's intention has been to sell souvenirs in connection with the
reconstructed rail line. He's used a mark, which is a drawing of the
original corporate logo of the V&T Railroad, on some souvenirs that
he has sold in his Mark Twain Bookstore in Virginia City. Curtis
said he has not yet used it on T-shirts or cups, which is what his
application specifies.

The Gray family has used the railroad name and the original logo for
souvenirs since 1972, according to the notice of opposition filed
with the U.S. Patent and Trademark Office.

If the railroad has been using the mark continuously to sell
souvenirs, then it has rights superior to Curtis' application, said
intellectual property attorney Lara Pearson. Legal battles over
trademarks can be long and costly, she said.

"Under U.S. trademark law, the first one to use the mark wins," she
said.

If Curtis wants to use it, he would have to renounce a legal claim
to 'Virginia & Truckee' and to the logo, except as it appears on his
proposed mark, Wasson said. Essentially, Curtis would have to admit
that he doesn't have exclusive rights to either. An agreement must
be reached by mid-September, or Curtis' application goes into
default.

This decision will ultimately affect the Nevada Commission for the
Reconstruction of the V&T Railway, which is building the 16-mile
track from Gold Hill to Carson City using public and private funds.

Bob Hadfield, chairman of the commission, said the board is trying
to juggle the acquisition of both real and intellectual property
connected to the project. He's counting on the future rail operator
to distinguish priorities for the reconstruction.

Rail operators have until today to submit their qualifications to a
consultant working on the selection process. At a Sept. 11
commission meeting the board will decide which operators are
eligible to submit a full proposal and business plan, which is due
in October.

"(The operator) would probably have more success in creating
agreements that are good for everybody," Hadfield said. "We're
looking for a win-win for everybody. We don't want to be creating
unhappy people to build this thing. We want people to say this is
the best thing to happen in this region."

By Monday, three operators had submitted their qualifications for
consideration: American Heritage, the V&T Railroad and Sierra
Railroad, according to a consultant involved in the project.

• Contact reporter Becky Bosshart at bbosshart@nevadaappeal.com or
881-1212.