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Palin's Favorite Store, Alaska's 'Out of the Closet' to Change Name by Year's End

Business Wire - November 10, 2008


-- Alaska Consignment Store Will Honor AIDS Healthcare Foundation's Federally Registered 'Out of the Closet' Trademark for its Fundraising Non-profit Thrift Stores

-- AHF Renews Call on RNC to Donate Governor's Campaign Wardrobe to AHF's Out of the Closet Chain; Since 1990, US' Largest AIDS Group Has Run Popular and Award Winning Fundraising Out of the Closet Thrift Stores to Benefit Fight Against HIV/AIDS

LOS ANGELES--AIDS Healthcare Foundation (AHF) the largest AIDS organization in the US and operator of the popular and award winning fundraising 'Out of the Closet' thrift store chain in California and Florida, has reached agreement to resolve the issue of trademark infringement with the operator of a private, for-profit Alaska consignment shop of the same name that was cited by Republican Vice Presidential candidate Governor Sarah Palin during the presidential campaign as her favorite store. The Alaska consignment store, and the trademark infringement issue, came to national attention following revelations that the Republican National Committee (RNC) spent over $150,000 on a campaign wardrobe and other clothing for Governor Palin and her family. That news drew widespread and highly critical media coverage. During a subsequent television interview on the FOX network in which she tried to put the wardrobe controversy in perspective, Governor Palin noted that she and her family were, in fact, quite frugal shoppers who favor Alaska's 'Out of the Closet' for-profit resale store.

The Alaska store had apparently been operating for five years under the same 'Out of the Closet' name as AHF's fundraising chain-which first opened in 1990-and under the same name for which AHF has had registered federal trademark since 1997. Upon learning of the trademark infringement, AHF announced its intention to pursue trademark protection by demanding that Ellen Arvold, the proprietor of the Alaska store, immediately change the name of her store and stop using AHF's federally registered trademark for all business purposes. In an October 27th press teleconference announcing AHF's plans to protect its 'Out of the Closet' trademark, the Foundation also invited Governor Palin and the Republican National Committee (RNC) to donate the candidate's campaign wardrobe to AIDS Healthcare Foundation's 'Out of the Closet' thrift store chain following the election. Revenues generated by AHF's 'Out of the Closet' contribute to caring for AIDS patients in the US and abroad, as well as supporting AHF's innovative HIV prevention and testing programs worldwide.

On October 27th, AHF General Counsel Tom Myers also sent a formal 'cease and desist' letter to Ms. Arvold regarding use of the trademarked 'Out of the Closet' name by her for-profit resale clothing store in Anchorage. Both in media interviews-notably in interviews with the website, www.tmz.com and in a November 7th Los Angeles Times article, and in a formal written response to AHF's 'cease and desist' request, Ms. Arvold indicated she would, indeed, honor AIDS Healthcare Foundation's trademark for 'Out of the Closet' and change the name of her store.

In a written reply dated October 31st, Ms. Arvold pledged to honor and fully comply with AHF's federal trademark by changing the name of her own store; however, in her reply, she cited several practical and logistical reasons-replacing store signage, changing bank account names and bank card receipts-while asking for time to make the needed changes. In her letter, Arvold asked:

"In light of the above, I am respectfully requesting that AIDS Healthcare Foundation give me until the end of this year, December 31st to effectuate the change of the name of my business."

"We thank Ms. Arvold for so graciously honoring AIDS Healthcare Foundation's trademark on our eighteen year-old 'Out of the Closet' store name, and will certainly grant her the time she has requested in order to make the necessary changes to her signage and business paperwork by year's end," said Michael Weinstein, President of AIDS Healthcare Foundation. "As a non-profit organization, we have spent considerable time and energy building 'Out of the Closet' as a signature brand supporting our lifesaving mission in the fight against HIV and AIDS worldwide."

In addition to raising funds for the care and treatment of thousands of people with AIDS in the US and around the globe, several AHF 'Out of the Closet' sites also serve as free HIV and STD testing centers. A growing number are now partnered with or placed alongside full service AHF Pharmacy stores, which are open to everyone, but offer clients specific expertise in HIV/AIDS medications. AHF's 'Out of the Closet' chain and related services at these sites provide the community a unique opportunity to give back.

"We also renew our invitation to the Republican National Committee to give back to the community by donating Governor Palin's campaign wardrobe to AIDS Healthcare Foundation's 'Out of the Closet'," added AHF's Weinstein. "Ninety-six cents of every dollar raised goes directly to care and services provided to HIV/AIDS patients and clients at AHF facilities in the US and around the world."

In California, AHF's Out of the Closet chain has benefited from high profile donations including props and clothing from Director Tim Burton's film Mars Attacks! items from Selena, the film biography on the late Tejana superstar, and clothing and props from the television shows Buffy, the Vampire Slayer and The X Files, as well as clothing from the former ABC-TV sitcom, Grace Under Fire. In August, 1997, Producer Aaron Spelling donated over $100,000 worth of merchandise (sets from his cancelled series, Pacific Palisades) to AIDS Healthcare Foundation's Out of the Closet chain. AHF's Out of the Closet stores frequently benefit from proximity to, and the generosity of donations from Los Angeles' numerous celebrities. Past donors include Elizabeth Taylor, Carol Burnett and Ellen DeGeneres, and film and television production companies including Warner Bros.

About AHF

AIDS Healthcare Foundation (AHF) is the nation's largest non-profit HIV/AIDS organization. AHF currently provides medical care and/or services to more than 83,000 individuals in 22 countries worldwide in the US, Africa, Latin America/Caribbean and Asia. Additional information is available at www.aidshealth.org

Contacts

AIDS Healthcare Foundation
Ged Kenslea, Communications Director
Work: 323-860-5225
Mobile: 323-791-5526
gedk@aidshealth.org

or

Lori Yeghiayan, Associate Director, Communications
Work: 323-860-5227
Mobile: 323-377-4312
lori.yeghiayan@aidshealth.org


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