'Best' settlement to provide brand with new identity

Hotel & Motel Management, July 5, 2004 by jeff Higley

Phoenix -- Best Western International and Thirty Eight Street, the parent company of Best Value Inns, have reached an out-of-court settlement for a lawsuit filed by BWI in July 2002. The suit, filed in the U.S. District Court in Arizona, alleged trademark infringement, trademark dilution and unfair competition.

The settlement was reached in mid-June, and was scheduled to be filed with the Court during the week of June 14. It will require Best Value Inns to change its name and the color blue in its logo, among other things. It also sets up a fund for educational opportunities in the lodging industry.

Roger Bloss, president and c.e.o. of Best Value Inns, said the settlement is a significant show of faith from both parties. Bloss said the two companies could have fought it out in court, but elected to reach a settlement rather than to line the pockets of lawyers.

"We wanted to prove to the world that not everything has to be fought in court to settle differences," Bloss said.

"A brand name is one of the most important assets of a global hotel chain," said Tom Higgins, Best Western's president and c.e.o., in a press statement. "We believe the terms of the settlement are equitable and we are satisfied that the agreement is in the best interest of both companies."

After disclosing to members that the executive team signed the settlement, the BVI management team will proceed with a name change. It already received, through a nonbinding vote during the brand's annual convention last December, some ideas for the new name.

Bernie Moyle, chief operating officer, applied for several trademarks with the U.S. Patent and Trademark Registration Office, including: Americas Best Value Inn; Value Inn of America; Americas Value Inn; AmeriValue Inn; and Value Inn Worldwide. In addition, Value Inn by Vantage and all of the other trademarks with the "by Vantage" tagline have been applied for. Vantage is used because it gives the brand a nondescriptive word in its name, Bloss said. They already used the tagline in commerce, he said. Bloss said there is no apostrophe in the names that include "Americas" because that is better suited for Internet commerce.

The group received an objection to Value Inn of America, Moyle and Bloss said.

"[The new name] is going to depend on the trademark situation," Bloss said.

"You could do a name change overnight," Moyle said. "But to have the name approved by the trademark office takes time. It could be anywhere from nine to 15 months if things go well."

Each of the names has been disclosed to Best Western, which approved all of them, Bloss said.

Bloss said the company had no opposition from US Franchise Systems over the possible use of Americas Best Value Inn. About a year ago, USFS president Mike Leven said that company would change the name of its Best Inns brand to either America's Best Inns or USA's Best Inns to avoid further litigation in a lawsuit by Best Western, which was similar to the one filed against Thirty Eight Street.

At the time of the convention, members clearly favored Americas Best Value Inn. Many of them said they preferred that because it would lead to better exposure in alphabetical listings of hotels.

"We have a gentlemens' agreement with USFS not to contest it," Bloss said. "USFS is fully aware of the possibility. Mike Leven's gentlemens' agreement is worth more than any document a lawyer could produce."

BVI executives hope to have at least three names approved, and a complete discussion with its members about the new name at their annual convention, which will be held Dec. 7-9 in Las Vegas.

If Americas Best Value Inn is the new name, it will have an extra meaning, Bloss said.

"Changing to 'Americas' sends a huge message about the growth we've experienced," Bloss said.

Best Value Inns, which will turn 5 years old later this month, recently signed its 400th property.

Bloss said the BVI executive team disclosed the existence of the lawsuit to members and potential members from the day they found out it was filed.

"We changed our membership agreement to have full disclosure, and Bernie followed up with them with another letter after they agreed to become members to make sure they knew about the lawsuit," Bloss said.

"We've exceeded 90-percent growth rate since the lawsuit was filed and we started including the disclosure in our membership agreements," Bloss said.

The reaction from members has been positive, executives said.

After the name change is finalized, new signage will be adopted at all properties.

"We plan on [offering] financial assistance," Bloss said.

BVI will be able to tweak its logo, including the check mark that emerges from the sunburst in its logo, he said.

Thirty Eight Street was granted a trademark registration for Best Value Inn on July 14, 1998. It filed for trademark registrations for trademarks for Best Value Inn Hotel, Best Value Inn Extended Stay and Best Value Inn Brand Membership, and Best Western filed a notice of opposition to those requests on August 29, 2001.

jhigley@advanstar.com