Mirage Las Vegas Hotel

In October, 1985, Robert Mayer registered, with the Secretary of State, the tradename "La Mirage Hotel and Casino" for his business, previously known as the Ambassador Inn. At that point, Rosoffs' tradename "Mirage Motel" was not registered with the Secretary of State. Appellant A.L.M.N. apparently began leasing "La Mirage" from Mayer's trust and refurbished the business, ordering signs, chips, stationary, and hotel supplies bearing the name "La Mirage." By January 1, 1986, A.L.M.N. had entered into contracts for such goods and services and had invested a significant amount of money in items bearing the name La Mirage. The La Mirage Hotel and Casino is a 320-room hotel and casino, employing approximately 250 people.

In early January 1986, the Rosoffs began noticing that some people, including customers, were confusing the two businesses. They sent a letter to A.L.M.N., suggesting it cease using the name La Mirage, but A.L.M.N. declined the suggestion. On January 14, 1986, the Rosoffs registered their tradename "Mirage Motel/Mirage Hotel" with the Secretary of State. In February, they sued appellants, alleging, among other causes of action, common law tradename infringement.

The Rosoffs sought summary judgment on their infringement claim. The district court granted the motion, concluding appellants were liable for damages because they had infringed the Rosoffs' tradename. After filing its initial order, the court amended it, adding a permanent injunction enjoining appellants from using the word "Mirage" in any advertising. Appellants obtained a stay of this injunction and appealed the order.