the May 2008 Issue in PDF Format - Trade Show Executive

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Continued from page 21 M&A Issues Merger and acquisition activity has directly affected trade show organizers and publications. In the First Quarter of 2008 alone, there were 202 transactions announced totaling $13.4 billion in value, across the 11 media and information sectors tracked by The Jordan, Edmiston Group, Inc. (JEGI). How those companies integrate their trade show businesses into smooth-running engines can impact future shows. Most organizations have non-compete clauses in their venue contracts to prevent competitive shows in close proximity or timing. But these clauses could be at risk if a merger creates a conflict after the contract is signed. Trade show companies involved in such transactions should review existing contracts to head off potential problems. Trade show organizers also need to pay attention to M&A activity among hotel companies. A robust hotel market has resulted in numerous sales and acquisitions. The net result is that more hotels are owned by private equity groups with little experience in the hospitality field. As a result, acquisitions might affect contracts signed by show organizers years before the merger. That’s one reason why changes of ownership and/or management should be addressed in the original contract, Schaffer said. For instance: • If a Marriott Hotel converts to a Renaissance Hotel — also a Marriott business brand — there may be no significant impact for your group. But if the conversion also brings extensive renovations during your event, it might be reasonable to ask to relocate to another hotel owned or managed by the same parent company in markets where that’s possible, Schaffer said. Thus, this contingency should be addressed in the hotel contract, requiring the hotel to inform the group of extensive construction or renovation, and the group must be able to cancel or transfer if this activity could jeopardize a successful event. • If a hotel converts from a well-known upscale brand to one of lower quality, organizers may have reason to question whether service levels will be adequate, Schaffer said. By including minimum service levels in the contract, an inability to meet those requirements might be enough to cancel the contract, if this option is included in the contract. The caveat, Schaffer said, is that there are no hard and fast rules governing events resulting from M&A activity. “It’s a challenge to anticipate and deal with industry changes,” he said. Reach Henry Schaffer at (312) 840-7673 or hschaffer@jenner.com Can Attendees Be Held Liable for Organizer’s Unpaid Balance? A Look at What Happened at the Westin Casuarina Hotel in Las Vegas By Sandi Cain, News Editor Attendees of a small dental conference in Las Vegas last fall got a post-conference surprise: a bill for their ‘share’ of the organizer’s unpaid balance of $57,000 owed to the Westin Casuarina Las Vegas Hotel, Casino & Spa. The hotel billed attendee’s credit cards for approximately $665 each after the organizer failed to pay the bill for food and beverage and other services related to the conference. The event, Dental Boot Kamp, was organized by The Coaching Center of Austin, TX and held October 5-6. The organizer said in news reports that she was working on a payment plan. Henry Schaffer, an attorney who specializes in the meeting and trade show industry, expressed surprise at the hotel’s action. “Contracts generally hold the event organizer responsible,” Schaffer said. However, the 815-room Westin Casuarina hotel said its registration folio has a clause that reads: “I agree that my bill liability for this bill is not waived and agree to be held personally liable in the event that the indicated person, company, or third party fails to pay for any part or all of these charges.” A hotel guest might presume that clause refers to charges related to a given guest room. In this case, the hotel was using it as the basis to recoup other charges as well. IAEE President Steven Hacker called the action a total aberration. “Unless there is a contractual relationship between the attendees and the organizer, the failure of an organization to meet its financial obligations does not give the hotel the right to bill those obligations to attendees,” he said. Westin Later Rescinds Action On April 10, the Westin reversed its decision and said it would refund any charges made to the attendees’ credit cards to recoup the unpaid bills. In a letter to attendees, Amy Ashton Shaw, assistant corporate general counsel for Columbia-Sussex, owner of the Westin Causarina and 67 other U.S. hotels, said the decision to refund the charges is an “effort to show our good faith” but recognizes that the organizer “is truly at fault for the expenses incurred by all the parties.” Columbia Sussex spokesman Hud Englehart said, “We’ve decided as a matter of customer relations to issue the refunds while continuing to pursue payment from The Coaching Center.” “I think it will be interesting to hear other hotels’ perceptions about this business decision made by the Westin Casuarina,” she said Tyra Hilliard, an Arlington, VA-based consultant on legal and risk management issues for the meetings industry. “Their attitudes will probably be the most significant indicator of whether this will be an ongoing contract issue.” Schaffer said the moral to the story is that people should read what they sign — even at hotel check-in. Reach Henry Schaffer at (312) 840-7673 or hschaffer@jenner.com; Steven Hacker at (972) 458-8002 or shacker@iaee.com; Tyra Hilliard at (202)640-1843 or tyra.hilliard@gmail.com; Amy Ashton Shaw and Hud Englehart at (859) 578-1100. 22 May 2008 Trade Show Executive www.TradeShowExecutive.com
From Nuisance to Necessity Protecting the Intellectual Property Rights of Exhibitors By Sandi Cain, news editor As we move into a more digital and global marketplace, protecting Intellectual Property Rights (IPR) at trade shows is a hot issue that has gained momentum. While IPR issues have been at the forefront in a number of industries in the U.S. and Europe for more than a decade, that’s not the case in other parts of the world. Therein lies the rub. Emerging economies may not yet place the same value on IPR as do more established countries. Yet no one wants to see a knock-off of their product on the show floor. But when police in Hannover raided the CeBIT trade and technology fair earlier this year as part of an investigation into suspected patent violations, it brought the issue to a head and set tongues wagging across the globe. The police in Hannover said the investigations stemmed from a rising number of criminal complaints about patent infringement surrounding CeBIT. Police filled dozens of boxes with various electronic devices, documents and advertising materials. A total of 51 exhibitors were affected – 24 from mainland China, 3 from Hong Kong and 12 from Taiwan. The rest were from Germany, Poland, the Netherlands and Korea, clearly illustrating that the problem exists worldwide. Cliff Wallace, president of UFI, The Global Association of the Exhibition Industry and managing director of the Hong Kong Convention & Cliff Wallace Exhibition Center, wrote in an April article for UFI that IPR violators should have expected the raids because organizers in Germany inform exhibitors in advance about IPR protection. Taking the Bull by its Horns The move to stop IPR violators extends beyond Germany. The trade show industry is taking the bull by the horns, setting forth some of its own guidelines. In 2006, UFI signed a joint Intellectual Property Rights agreement with the China Council for the Promotion of International Trade (CCPIT). The same year, officials with the International Association of Exhibitions and Events (IAEE) reached an agreement with China that recognized the importance of IPR and the need to protect those rights. “At UFI, our position is that violations simply have to stop,” Wallace said. “Enforcement is growing and will continue to grow as people take legal means to enforce the rules and prevent the damages that can result from IP violations,” he said. UFI also developed a brochure with recommendations for IP protection and rights at trade shows. It is available as a free download on its website www.ufi.org (see sidebar, page 24 for an excerpt from this document). Organizers are Not Judges Such moves are a good first step, but more is needed, said Jochen Witt, CEO of JWC Consultancy and executive vice president of UFI. The Jochen Witt Continued on page 24 www.TradeShowExecutive.com Trade Show Executive May 2008 23
Page 1 and 2: Trade Show Executive® News, Views
Page 3 and 4: Job Title: ___LVCVA______Publicatio
Page 5 and 6: I CHALLENGE YOU to put Boston to th
Page 7 and 8: A modern update of the archetypal f
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