MGM MIRAGE Retail Complince Guide

Transcription

RETAIL
LEGAL COMPLIANCE GUIDE
RETAIL COMPLIANCE GUIDE
We b Ve r s i o n
The web version of the MGM MIRAGE Retail Compliance Guide contains the following navigation features:
You can click on any topic in the Table of Contents to go directly to that portion of the guide.
You can click on any cross-reference to any web site or additional materials in this guide and go directly
to that resource on the Internet.
You can view and navigate through the Table of Contents by clicking on the “Bookmarks” tab in the
left margin when viewing the guide in Adobe Reader or Adobe Acrobat.
Acceptance and Acknowledgement
The undersigned vendor (“Vendor”) through its authorized representative, hereby accepts and acknowledges receipt of
the MGM MIRAGE RETAIL Legal Compliance Guide (“Guide”). Vendor agrees to comply with all of MGM MIRAGE
RETAIL’s requirements set forth in this Guide Vendor agrees that Vendor is solely responsible for complying with all
laws and regulations that may apply to Vendor’s supply of products to MGM MIRAGE RETAIL. Vendor has read and
accepts the disclaimer on page i. Vendor agrees to consult its own independent counsel to advise the Vendor on compliance with all laws and regulations.
Date: ___________________
___________________________________________________
Vendor’s Name
___________________________________________________
Signature of Principal
___________________________________________________
Printed Name of Principal
___________________________________________________
Title of Principal
IMPORTANT: VENDORS ARE REQUIRED TO SIGN AND RETURN THIS FORM TO:
MGM MIRAGE RETAIL
P.O. Box 98566
Las Vegas, Nevada 89193
F O R E WA R D
Dear Vendor:
MGM MIRAGE developed this Legal Compliance Guide to assist our vendors in complying with legal
requirements and MGM MIRAGE’s own requirements for retail products and to reduce the possibility that
vendors will supply products to MGM MIRAGE that may violate laws or the rights of others. The requirements in this manual, as well as applicable laws and regulations, are subject to change without notice.
MGM MIRAGE requires all vendors to comply with all applicable laws and regulations. Although
vendors are required to independently ensure that they comply with all legal requirements, we hope that this
guide will provide a valuable resource for you.
Please contact MGM MIRAGE Retail with any questions about these requirements. We look forward
to doing business with you.
Diane Guberti
Director of Brand Identity
MGM MIRAGE RETAIL
Page i
DISCLAIMER
MGM MIRAGE is providing this RETAIL COMPLIANCE GUIDE as a resource for the convenience of vendors that
supply retail products to MGM MIRAGE, its subsidiaries, affiliates, and related entities. This guide includes information
on laws or regulations that apply or may apply to products supplied to MGM MIRAGE, as well as MGM MIRAGE’s
own requirements for vendors.
MGM MIRAGE and its legal counsel, Lewis and Roca LLP, are providing this guide and all contents herein AS IS with
no express or implied warranties or representations as to the contents of this guide, including, but not limited to, its accuracy or completeness. This guide does not contain or purport to contain a complete statement of laws or regulations
relating to retail products or the subject matters addressed in this guide. Although Lewis and Roca LLP has attempted
to create an accurate statement of various legal principles that may apply to retail products, many applicable legal requirements have been omitted, paraphrased, or generalized, and some laws and regulations may change from time to
time.
Vendors should consult independent counsel to advise them on compliance with all federal, state and local laws and regulations and should not rely solely or primarily on this guide for that purpose.
This guide is not intended to and shall not be construed to constitute legal advice. No attorney-client relationship shall
arise between any person or entity and Lewis and Roca LLP based on the provision of this guide.
Please direct any comments on or errors in this guide to MGM MIRAGE RETAIL.
Page ii
DECISION TREE
yes
Is the product you are supplying a Private Label
Product or Co-Branded Product to MGM MIRAGE?
Obtain MGM MIRAGE’s authorization
to use its trademarks on the product
Does the product use a photograph of
any MGM MIRAGE properties?
Clear rights to your mark or obtain
a license to use another’s trademark
no
Does the product use any copyrighted
works (images, photos, art work, etc.)?
yes
Use only photos from the
MGM MIRAGE images web site
Follow this decision tree to
assist you in determining which
sections of this guide apply to
the products that you are
supplying to MGM MIRAGE.
no
no
Does the product contain the name,
image or likeness of any person?
yes
no
Is the product clothing, food,
jewelry, bath/body or for kids?
yes
no
Is the product imported
into the United States?
yes
yes
If you did not create the
work, obtain a license
Obtain the written consent
of the person depicted
Follow the laws and regulations
for the type of product
Follow the laws and regulations
for imported goods
Page iii
TA B L E O F C O N T E N T S
INTRODUCTION
Laws, Regulations & Policies
Product Definitions
TRADEMARKS
Trademark Terminology
Private Label Products
MGM MIRAGE Marks
Branded Products
Avoiding Infringement
Trade Dress
COPYRIGHTS & OTHER
INTELLECTUAL PROPERTY
Copyright Basics
Private Label Products
Copyright Notices
Form of Copyright Notices
Copyright Myths
Patents and Trade Secrets
Rights of Publicity
Page iv
APPAREL
1
2
3
4
5
7
8
9
Overview
18
Products Covered
19
Country of Origin
20
Company Name or RN
21
Fiber Content
22
Format of Labels
24
Examples of Correct Labels
25
Mechanics of Labeling
26
JE Flammability
10
11
12
13
14
16
17
27
JEWELRY
Overview
28
Deceptive Acts
29
Quality Marks
30
FOOD
PRODUCT SAFETY
Overview
31
Overview
47
Basic Labeling Elements
32
Labeling for Small Parts
48
Name of Food
33
Age Guidelines
49
Nutrient Claims
34
Banned Toys
50
Health Claims
35
Children’s Sleepwear
51
Food Labeling Format
36
Allergens
38
Imported Foods
39
COSMETICS, BATH & BODY
IMPORTS
Marking
52
APPENDIX
Overview
40
Misbranded and Adulterated
41
Prohibited Ingredients
42
Warnings
43
Labeling & Packaging
45
Page v
Laws, Regulations & Policies
INTRODUCTION
Vendors must comply with all federal, state and local laws and regulations, as well as MGM MIRAGE policies.
1. Federal Laws and Regulations: Many of the rules set forth in this compliance guide are based on federal statutes or
regulations that implement federal statutes. The federal government can enforce many of these laws and regulations
through civil lawsuits, administrative actions, and/or criminal proceedings. In some cases, private parties can sue to
enforce their rights under these laws. Accordingly, it is critical that vendors comply with all federal statutes and
regulations. State and local laws and regulations may also apply, but these are beyond the scope of this guide.
2. MGM MIRAGE Policies: MGM MIRAGE requires vendors to comply with all federal, state and local laws and
regulations that may apply to vendors’ businesses and products. In addition, this guide sets forth requirements that
vendors must comply with in supplying products to MGM MIRAGE. If vendors fail to adhere to all applicable laws
and regulations or MGM MIRAGE’s requirements, MGM MIRAGE has the right to exercise various remedies, including rejecting the goods.
3. Recommended Practices: This guide also contains some recommended practices that are not required by law, regulations or MGM MIRAGE requirements, but are intended to assist the vendor and MGM MIRAGE in avoiding legal issues relating to retail goods. Vendors are encouraged to comply with the recommended practices, subject to advice of the vendor’s legal counsel.
4. Special Notice Regarding Apparel Products Made in California: Purchasing apparel products manufactured in
California can expose retailers and MGM MIRAGE to potential labor claims.
Vendors are prohibited from supplying to MGM MIRAGE any MGM MIRAGE branded apparel manufactured, assembled, packaged, ticketed, embellished, or otherwise processed in the State of California.
Page 1
Introduction: Product Definitions
Some requirements in this guide differ depending on whether the product is a Private Label Product, a Branded
Product, or a Co-Branded Product. This section defines these terms.
1. Private Label Products: “Private Label Products” are products that vendors
supply for MGM MIRAGE that are branded ONLY with the trademarks or
names of MGM MIRAGE properties on the product packaging, labels, or on
the product itself . Many of the requirements in this manual differ depending
on whether the product is a Private Label Product.
Do not put the vendor or manufacturer’s name on Private Label Products.
Example: BELLAGIO brand plush bears
2. Branded Products: “Branded products” are products that vendors supply for
MGM MIRAGE that are branded ONLY with the trademarks of non-MGM
MIRAGE companies.
Example: STARBUCKS coffee products
3. Co-Branded Products: “Co-branded products” are products that vendors supply for MGM MIRAGE that are branded with BOTH the trademarks or names
of MGM MIRAGE properties and the companies from which the product
originated.
Example: Products that bear both the WORLD POKER TOUR
and MGM GRAND logos
Page 2
Trademark Terminology
TRADEMARKS
The section explains basic principles of trademark law, including defining trademarks, identifying MGM MIRAGE
trademarks, explaining proper trademark usage, distinguishing trademarks from terms that cannot function as
trademarks, tips on avoiding trademark infringement, and principles regarding trade dress.
1. What is a trademark? A trademark (or “mark” for short) is anything that serves to
identify the source or origin of goods or services, including, but not limited to, words,
slogans, logos, scents, and sounds, or combinations thereof. A trademark answers the
question of who is a product or service from? See the text box at the right for 3 different trademarks used by the Mirage.
2. What is a service mark? A “service mark” is sometimes used to refer to marks for
services, while “trademark” is sometimes used to refer to marks for goods. We will use
the term “trademark” to apply to both goods and services.
Examples of
Trademarks
Mirage & design
3. What is a trade name?: A trade name refers to the name of a business entity, such as
a corporation, partnership or limited liability company. Trade names are sometimes
different from a business’ trademarks.
Example: Ramparts, Inc. is the trade name of the corporation that
owns and operates the LUXOR resort hotel and casino.
However, LUXOR is one of the trademarks used by the
corporation as the brand name for its resort hotel and casino services.
Page 3
Design only
Mirage only
TRADEMARKS: Private Label Products
Follow these MGM MIRAGE policies for all Private Label Products (i.e., products that you supply to MGM
MIRAGE that bear only MGM MIRAGE’s trademarks).
1. Obtain MGM MIRAGE’s authorization for Private Label Products: Do not place
any MGM MIRAGE trademarks on any products (including samples) without MGM
MIRAGE’s prior approval. MGM MIRAGE may not use its marks on certain types
of products. Also, do not supply any private label products bearing any MGM MIRAGE trademarks to anyone other than MGM MIRAGE.
Right
Official logo
Use of ®
No change in format
2. Use only MGM MIRAGE’s official trademarks: Use only official MGM MIRAGE
trademarks on Private Label Products that you supply to MGM MIRAGE. Many of
the official trademarks are shown on pages 5-6. MGM MIRAGE reserves the right
to change these logos at any time.
3. Do not modify MGM MIRAGE’s trademarks: Do not modify the official MGM
MIRAGE marks in any way without MGM MIRAGE’s prior approval. Examples of
modifications include changing the color of the marks, changing the aspect ratio
(proportion between the height and width), or adding or subtracting words or design
elements.
Wrong
Modified logo (change
of color and aspect ratio)
4. Use ® or tm: Use ® in connection with registered marks. Use tm for unregistered
marks. Most of the MGM MIRAGE marks are registered, as indicated on pages 5-6.
MGM MIRAGE may, in its discretion, omit ® and tm on some products for aesthetic
purposes.
Page 4
TRADEMARKS: MGM MIRAGE Marks
This section shows MGM MIRAGE’s official trademarks for retail products. You should generally use ® in
connection with all of these marks except MONTE CARLO, THE HOTEL, and TI TREASURE ISLAND, unless
otherwise instructed by MGM MIRAGE. Use tm in connection with MONTE CARLO, THE HOTEL and TI
TREASURE ISLAND marks.
Page 5
TRADEMARKS: MGM MIRAGE Marks
Page 6
TRADEMARKS: Branded Products
For products that you supply to MGM MIRAGE that are not branded with MGM MIRAGE marks and that bear
your own trademark or trademarks of others, you must ensure that you have the right to use the trademarks that
appear on the product.
1. Do not use marks that are confusingly similar to marks owned by others: If you
adopt a brand or mark for your product, you should ensure that the mark is not the
same as or similar to existing marks used by others for the same or related goods or
services. In addition, you cannot use famous marks of others even in connection with
unrelated products.
Example: Do not use STARBUCKS for a coffee product that is not
a genuine Starbucks brand product. Do not use a similar
mark, such as STARBUXX or TARBUC, for a similar
product. Do not use a famous mark such as STARBUCKS
for products that are unrelated to coffee, such as cigars.
2. Generic terms are always safe to use. A generic term identifies what the product is,
such as coffee, t-shirt, or glass. Generic terms cannot be protected as trademarks.
Therefore, they are free for anyone to use.
3. Descriptive terms are generally safe to use. A descriptive term identifies some element or characteristic of a product and are generally safe to use. Examples are decaffeinated, wrinkle-free, and tempered. Note that companies that exclusively use a
descriptive term as a trademark over an extensive period of time can acquire trademark rights in the mark. Thus, ensure that you are using the mark to describe your
product, not as the trademark or name for your product.
Page 7
Additional Resources
on Trademarks
For additional informaton
on trademark law, visit the
following web sites:
United States Patent
and Trademark Office
<uspto.gov>
International Trademark Association
<inta.org>
TRADEMARKS: Avoiding Infringement
If you violate the trademark rights of others, you may be liable for damages, attorneys’ fees, and costs, and you may be
enjoined from selling products under the infringing mark. Follow these rules to reduce the risk of trademark
violations.
1. Do not use trademarks (including word marks, logos, slogans, etc.) that are similar to
those used by others.
2. Do not remove or obscure the trademarks of others on any products and then re-brand and
sell the products.
3. Do not use packaging, unique product shapes, and other “trade dress” that is the same or
similar to those of others.
The Cost of
Infringement
The infringer risks liability
for:
Damages (which can be
tripled)
4. Do not make any false statements or claims on your product about the origin, approval or
sponsorship of the product.
Attorneys’ fees and costs of both
parties
5. Do not purchase branded goods from unauthorized distributors.
Seizure of infringing products
6. Do not import branded goods unless you have determined that the goods are genuine and
that you are not violating any rights of an exclusive distributor for the product in the U.S.
Injunctive relief
7. Do not supply private label products made specially for MGM MIRAGE to anyone other
than MGM MIRAGE or use MGM MIRAGE’s trademarks without their permission.
Page 8
TRADEMARKS: Trade Dress
Do not copy the distinctive, non-functional aspects of the product packaging or design of others.
1. What is trade dress? In the context of goods, “trade dress” refers to the distinctive elements of product packaging
or design that serve to identify the source of origin of the product. Trade dress can include the shape, texture, color,
size, and other distinctive elements of a product.
Example:
The shape of a Coke bottle
The packaging for Wonder Bread
The color of Post-It notes
2. What does trade dress law protect? Trade dress law is intended to protect consumers from confusion in the marketplace. If companies other than Coca-Cola were allowed to use the famous Coke bottle shape for other drinks, consumers may be confused into believing that the product is Coke or originated with the Coca-Cola Company.
3. What is excluded from trade dress protection? Trade dress law does not protect the functional aspects of a product’s design. Trade dress is considered functional if it is essential to the use or purpose of the product.
4. Do not copy the distinctive, non-functional elements of product packaging or characteristics of other products. You can reduce the risk of liability for trade dress infringement by ensuring that your products do not use packaging or non-functional elements that are the same as or similar to those of other products.
Page 9
COPYRIGHT
Copyright Basics
Many products incorporate some form of material protected by copyright, such as photographs, artwork, and logos.
This section discusses what is protected under copyright law, as well as who owns the copyrights in a work.
1. Works Protected by Copyright Law: When someone creates an original “work of
authorship” (see text box) in some tangible form of expression (such as on paper, canvas, etc.), the work is automatically protected by copyright. No copyright registration
is required.
2. Author = Owner: The “author” of a work owns the copyrights. The author is the
person(s) who created the work. Exception: for “works made for hire,” the author is
the employer or person who commissioned the work.
3. Ownership of Article ≠ Right to Use Work: If you own a physical object protected
by copyright law (such as a photograph or painting), this does not give you the copyrights in the work. For example, if you purchase a painting, you cannot reproduce
the painting, such as on t-shirts, without the copyright owner’s permission.
4. Exclusive Rights of the Copyright Owner: The owner of the copyright owns the
exclusive rights to: (1) reproduce the work; (2) distribute the work; (3) create derivative works based on the copyrighted work; (4) publicly display the work; and (5)
publicly perform the work.
5. Violation of the Exclusive Rights = Copyright Infringement: If you violate one
or more of the copyright owner’s exclusive rights, then you have committed infringement. It does not matter whether you knew the work was protected by copyright
when you used it. It does not matter whether someone erroneously told you that you
could use the work. Mistake or lack of intent does not affect liability, only damages.
Examples of Works
Protected by
Copyright Law
Artwork
Audio-visual works
Photographs
Logos
Web sites
Maps
Stickers
Fabric designs
Games and puzzles
Toys
Jewelry designs
Sculptures
Books
Poems
Cartoons
Periodicals
Musical works
Sound recordings
Page 10
COPYRIGHT: Private Label Products
MGM MIRAGE guards against liability for copyright infringement based on its sale of private label products by: (1)
requiring vendors to assign copyrights in all works to MGM MIRAGE; and (2) requiring vendors to use only
photographs provided by MGM MIRAGE.
1. Assignment of copyrighted works to MGM MIRAGE: One way in which MGM
MIRAGE protects itself from copyright infringement claims is to require vendors to:
Provide a written statement verifying that they are the owner of the copyrights
in any works that they use on, or in connection with, or that comprise, private
label products supplied to MGM MIRAGE.
Assign the rights in such copyrighted works to MGM MIRAGE.
Agree not to supply products custom-made for MGM MIRAGE to any other
customers.
These terms are in the INTELLECTUAL PROPERTY AGREEMENT in the Appendix and are part of the purchase price of the goods. Thus, MGM MIRAGE will not pay
any additional fee for assignment of the copyrights.
2. MGM MIRAGE licensed photos: Another way in which MGM MIRAGE protects
itself from copyright infringement claims is to restrict use of photos on private-label
products to photos supplied by MGM MIRAGE. We have a library of hundreds of
high-quality photos for use in connection with retail products on our web site at
<mgmmirageimages.com>. You can request permission to access this web site by registering on the site. Vendors are not permitted to use photographs that they have shot
or obtained from others on any private label retail products.
Page 11
Samples Licensed
Photos
COPYRIGHT: Copyright Notices
To deter copyright infringement of MGM MIRAGE works, MGM MIRAGE requires vendors to place copyright
notices on all private label products identifying the appropriate MGM MIRAGE entity as the copyright owner. On all
other products, MGM MIRAGE recommends using copyright notices to identify the copyright owner.
1. Copyright notice required on Private Label Products: MGM MIRAGE requires
vendors to include copyright notices on all private label products supplied to MGM
MIRAGE, except that, for some products, MGM MIRAGE may waive this requirement or require an abbreviated notice for aesthetic reasons. However, the copyright
notice should refer to an MGM MIRAGE entity, not the vendor.
2. Copyright notice not required on Branded Products: For non-private label products, MGM MIRAGE does not require the vendor to include copyright notices, but
strongly prefers such notices. For works published after March 1, 1989, omitting the
notice does not affect copyright protection. However, using the notice will preclude
infringers from claiming “innocent infringement” and may deter infringement.
3. Form of copyright notice: The copyright notice includes three components:
© , “Copyright” or abbreviation “Copr.”
The year of first publication
The name of the copyright owner
See next page
for examples
4. Placement of Copyright Notice: The notice should be placed on goods in such a
way as to give reasonable notice of the copyright claim. The notice should be permanently legible. There are specific regulations regarding the placement of copyright
notices for various types of products. See the text box.
Placement of
Copyright Notice
Clothing: in order of
preference: (1) adjacent to
the artwork; (2) on the
sewn-in labels; (3) on the
hang tags
2-dimensional works:
on the front or back or on
backing, mounting or
framing that is durably
attached
3-dimensional works:
on any visible portion of
the work or on any base,
mounting, or framing that
is durably attached
Page 12
COPYRIGHT: Form of Copyright Notice
The following are the short forms of copyright notices to be used on all Private Label Products supplied to MGM
MIRAGE. MGM MIRAGE may sometimes require inclusion of “hotel and casino” or some other identifier at the end
of the notice to ensure that the notice specifically identifies the copyright claimant. MGM MIRAGE may sometimes
require reference to the year after the © symbol in the copyright notice.
© Beau Rivage
© Bellagio
© Buffalo Bill’s
© Circus Circus
© Colorado Belle
© Edgewater
© Excalibur
© Gold Strike
© Luxor
© Mandalay Bay
© MGM Grand Detroit
© MGM Grand
© Monte Carlo (Las Vegas)
© Nevada Landing
© New York-New York
© Primm Valley
© Railroad Pass
© Shadow Creek
© Silver Legacy
© TI Treasure Island
© The Mirage
Page 13
Example of a
Copyright Notice
This is an example of how a
copyright notice appears on the
back of a hang tag for a Bellagio
branded product.
COPYRIGHT: Copyright Myths
There are several common myths about copyright law that are often cited by those accused of copyright infringement.
It is important to ensure that vendors and their employees and contractors recognize these myths.
1. Anything on the Internet is in the public domain and free to use. FALSE
The fact that a work is on the Internet does not affect whether it is protected by copyright.
2. I bought the photo, image, etc., so I can use it anyway I want. FALSE
Purchase of the physical copyrighted work does not include permission to copy, distribute, publicly display, or make
derivative works based on the copyrighted work.
3. I paid someone to create the work, so I own the copyrights. FALSE
The person who created the work is the owner of the copyright, unless the person assigned the rights to you or it was
a work made for hire. See the INTELLECTUAL PROPERTY AGREEMENT in the Appendix.
4. I can use someone’s copyrighted work as long as I give them credit. FALSE
Copying, distributing, performing or publicly displaying a copyrighted work constitutes infringement regardless of
whether the owner or author is credited.
5. I can use someone’s copyrighted work as long as I change it 10%. FALSE
The copyright owner has the right to control creation of derivative works (i.e., works based on the copyrighted
work). You cannot create derivative works without the copyright owner’s consent.
6. A work that does not include a copyright notice is not protected by copyright law. FALSE
The absence of a copyright notice does not mean that the work is not protected by copyright law. Use of a copyright
notice is not required.
Page 14
COPYRIGHT: Myths (continued)
7. I can use a small portion of the copyrighted work without committing infringement. FALSE
Liability for copyright infringement does not depend on how much of the copyrighted material was not copied. However, as a practical matter, the less the amount of the copyrighted work that is used, the lower the risk that the copyright owner will detect the use or bring an infringement action. Moreover, the less the amount of the copyrighted
work that is used, the more difficult it will be for the copyright owner to prove substantial similarity.
8. Photographs are not protected by copyright. FALSE
Photographs are protected under copyright law, because they are original works of authorship fixed in a tangible
form of expression. However, ownership of the copyrights in the photograph merely prevents others from using the
photograph without the copyright owner’s permission. The copyright owner cannot stop others from independently
taking photos of the same object.
9. I am not liable for copyright infringement, because I did not know that the work was copyrighted.
FALSE Knowledge and intent are not relevant to liability for copyright infringement. However, intent is considered
in determining damages for infringement.
10. I am not liable for copyright infringement if someone who falsely claims to own the copyright authorizes me
to use the work. FALSE
If you violate the copyright owner’s exclusive rights, you are liable for infringement. It is no defense that you relied
on false claims of copyright ownership of another. However, intent is considered in determining damages for infringement.
Page 15
Patents and Trade Secrets
When you supply products to MGM MIRAGE, you warrant that the product does not infringe any patents or
misappropriate any trade secrets. Patents are limited monopolies granted by the U.S. Government that provides the
inventor with the right to exclude others from making, selling, using or importing products that are covered by the
patent, without the patent owner’s consent. Trade secrets refer to information that is not generally known or readily
ascertainable by proper means that is of economic value to the owner.
1. Do not supply any products to MGM MIRAGE that infringe any patents. Vendors must not supply products to
MGM MIRAGE that they know or should know infringe patents owned by others. These products may include
“counterfeit” products or products that simply embody some invention that is protected by a patent.
2. Be careful about design patents. Design patents are patents that protect the ornamental, non-functional aspects of
a product. For example, Louis Viutton owns numerous design patents to protect the look and shape of its products,
such as handbags, eyeglasses, key chains, and fabric. Vendors should be careful not to supply “knockoffs” or products
that are designed based on other products that they have seen without consulting legal counsel to ensure that doing
so would not infringe any patents or other intellectual property rights.
3. Do not supply any products to MGM MIRAGE that are based on misappropriation of trade secrets of others.
Vendors must not supply products to MGM MIRAGE that they know or should have known were developed based
on trade secrets of others. Thus, if you acquire through improper means or use secret formulas or manufacturing
processes of others, you may be liable for misappropriation of trade secrets.
4. You must provide a license to MGM MIRAGE to manufacture, offer to sell and sell any products embodying
a patent. See the Intellectual Property Agreement in the Appendix for more information.
Page 16
Rights of Publicity
Rights of publicity refer to the right of every person to control the commercial use of their name, image or likeness. If
you use the name, likeness or image of any person in connection with your retail products, make sure that you ensure
that you check and follow rights of publicity laws, which vary from state to state. This section discusses a few basics.
1. Do not use the name, image or likeness of any person on a product without their permission: Rights of publicity laws generally prohibit others from making commercial use of the name, voice, signature, photograph or likeness
of a person absent their consent. “Commercial use” includes use on any product.
2. Even deceased persons may have rights of publicity: Several states recognize “post-mortem” rights of publicity.
For example, the estates of many deceased celebrities, such as Elvis Presley, aggressively enforce Elvis’ rights of publicity. Thus, you should not use the name, likeness or image of a deceased celebrity without obtaining the written permission of their estate.
3. Get it in writing: Several states, including Nevada, require that the person’s consent to use of their name, likeness
and image, must be in writing and signed by the person.
4. Not only for the famous: Every person has rights of publicity, not just celebrities. Thus, using the rights of publicity of any employee, customer, or stranger without their written consent is risky.
5. Use of rights of publicity on Private Label Products: The vendor is responsible for providing documentation to
MGM MIRAGE of the written consent of any person whose rights of publicity are used on any private-label product
supplied to MGM MIRAGE.
Page 17
A P PA R E L
Overview
If you manufacture, import, sell, offer to sell, distribute, or advertise apparel and textile products in the United States,
you must comply with federal labeling requirements. This chapter will provide an overview of federal labeling
requirements for various apparel and textile products.
1. What laws apply to apparel and textiles? Various federal statutes require labeling of apparel and textiles imported
into or sold in the United States, including the Tariff Act, the Textile Fiber Products Identification Act and Rules
and Regulations, the Wool Products Labeling Act and Rules and Regulations, the Fur Products Labeling Act and
Rules and Regulations, and the Care Labeling of Textile Wearing Apparel and Certain Piece Goods to name a few.
2. Who enforces these laws? Both the Federal Trade Commission (“FTC”) and the United States Customs Service
(“Customs”) enforce these laws. Both agencies have adopted regulations for labeling apparel and textiles in compliance with these various federal statutes.
3. What are the key components of apparel labels? All apparel covered by regulations must bear labels with the following information:
Country of origin (see page 20)
Company name or Registered Number (see page 21)
Fiber content (see page 22)
Product care: Care instructions must provide information about regular care for the garment and provide
warnings about certain procedures that would harm the garment. You must have a reasonable basis for all
care instructions and warnings
4. Will MGM MIRAGE require re-labeling of apparel? Yes, MGM MIRAGE may require re-labeling of apparel to
comply with these requirements and to comply with property-specific requirements.
Page 18
Apparel: Products Covered
The apparel and textile labeling requirements apply to all clothing and some types of related products.
Products Covered by
Labeling Requirements
Clothing
Handkerchiefs, scarves
Bedding, towels
Umbrellas
Page 19
Products Not Covered Unless Statement Made About Fiber Content
Products Not Covered by
Labeling Requirements
Belts, suspenders, garters, permanently Linings, interlinings, filling, or padding
knotted neckties
used for structural purposes (unless used
for warmth)
Coated fabrics and those parts of textile
products made of coated fabrics (coated Products subject to the Food, Drug and
fabric is coated, filled, impregnated, or Cosmetic Act
laminated with a continuous-filmforming polymeric composition, and the Shoes, slippers and other outer footwear;
weight added to the base fabric is at headwear
least 35 percent of the weight of the fabric before coating)
Textiles used in handbags or luggage,
brushes, lampshades, toys, feminine hygiene products, adhesive tapes and adhesive
sheets, cleaning cloths impregnated with
chemicals, or diapers
Apparel: Country of Origin
Products covered by federal statutes and rules and regulations must be labeled to show the country of origin. U.S.
Customs and Border Protection has country of origin labeling requirements separate from those under the Textile and
Wool Acts and Rules. Manufacturers and importers must comply with both FTC and Customs requirements.
1. Identify the country of origin: The general rule is that the label must identify the country in which the product
was manufactured.
2. Comply with the rules for “Made in the U.S.A.” claims: A label may say “Made in U.S.A.” only if the product is
made completely in the U.S. of materials that were made in the U.S. If a U.S. manufacturer uses imported goods
that are dyed, printed, and finished in the U.S., for example, they may not be labeled “Made in U.S.A.” without
qualification. The origin of parts of the product exempt from content disclosure (such as zippers, buttons, etc.) does
not have to be considered in determining the product’s country of origin.
3. Products made in the U.S.A. of imported materials: If your product is made in the U.S. but contains imported
materials, you are required to disclose this fact. This disclosure must appear as a single statement, without separating the “Made in U.S.A.” and “imported” references. This disclosure must appear as a single statement, without
separating the “Made in U.S.A.” and “imported” references.
Examples:
Made in U.S.A. of imported fabric
Knitted in U.S.A. of imported yarn
4. Products made in the U.S.A. and in other countries: If processing or manufacturing takes place in the U.S. and
another county, the label must identify both aspects of production.
Examples:
Made in Sri Lanka, finished in the U.S.A.
Assembled in the U.S.A. of imported components
Page 20
Apparel: Company Name or RN
In addition to identifying fiber content and country of origin, labels must identify either the company name or
Registered Identification Number (RN) of the manufacturer, importer, or another firm marketing, distributing, or
otherwise handling the product.
1. What is an RN? An RN is a number issued and registered by the FTC. An RN may be issued to any firm in the U.S.
that manufacturers, imports, markets, distributes, or otherwise handles textile, wool, or fur products. RNs are not
issued to businesses outside of the U.S.
2. Identify the company name or RN for imported apparel: If the product is imported, the label must identify at
least one of the following:
the name of the foreign manufacturer,
the name or RN of the importer,
the name or RN of the wholesaler, or
the name or RN of the ultimate retailer if the retailer has consented.
Consult with MGM MIRAGE RETAIL regarding what name to use on imported Private Label Products.
3. Identifying the company name: If using a company name, the name must be the full name under which the company
is doing business. This is the name that appears on business documents, such as purchase orders and invoices. It
cannot be a trademark, trade name, brand, label, or designer name unless that name is also the name under which the
company is doing business.
4. Changing the RN: If the textiles are labeled with the name or RN of the retailer, and for any reason the intended
retailer does not receive the goods and they are sold to someone else, the retailer’s name or RN must be removed or
obliterated, and the products relabeled with the RN or name of a company that is the actual line of distribution.
Page 21
Apparel: Fiber Content
Apparel must be labeled to show the fiber content.
1. List the fiber names and percentages in descending order: The generic fiber names
and percentages by weight of each constituent fiber must be listed in descending order
of predominance. If the product is made from one fiber, you may use the word “All” instead of “100%.”
2. Do not list non-fibrous material: This disclosure requirement applies only to fibers
contained in yarns, fabrics, clothing, and other household items. If part of the product
is made from a non-fibrous material such as plastic, glass, wood, paint, metal or leather,
you do not have to include that on your label. For example, you do not have to disclose the contents of zippers, buttons, beads, sequins, leather patches, painted designs,
or any other parts that are not made from fiber, yarn, or fabric.
3. The 5% Rule: In general, you are only required to disclose fibers that comprise 5% or
more of the fiber weight. Fibers of less than 5% should be disclosed as “other fiber” or
“other fibers,” as the case may be, and not by their generic name or fiber trademark.
Exceptions:
wool or recycled wool must always be disclosed by name and percentage
weight
the fiber has functional significance at the <5% level (such as elasticity)
if there are multiple, non-functionally significant fibers in amounts of less
than 5% each, they should be designated with their aggregate %
Examples of Fiber
Content Disclosure
Correct
65% rayon
35% polyester
All wool
92% Cotton
8% Other Fibers
Incorrect
85% Cotton
15% Other
(where “other” refers to a
single fiber)
85% Cotton
(total does not equal 100%)
Page 22
Apparel: Fiber Content (continued)
4. Not all parts of the product count: There are also exceptions to the fiber disclosure requirement. Some parts of a
textile or wool product do not have to be counted for labeling purposes even if they are made of a fibrous material.
These include trim, linings (unless used for warmth), small amounts of ornamentation, and the threads that hold the
garment together.
5. +3% Tolerance: There is a 3% tolerance for fiber content claims on labels. For example, if the label indicates that a
product contains 40 percent cotton, the actual amount of cotton present may vary form 37 percent to 43 percent of
the total fiber weight. This does not mean you can knowingly misrepresent fiber amounts. If you know that the
product contains 37 percent cotton, the label should state “37% cotton.” The tolerance simply allows for a small
amount of unintended inconsistency in the manufacturing process. Deviations larger than 3% constitute mislabeling,
unless the company can prove that it was the result of unavoidable variations in manufacturing, despite the exercise
of due care.
Exception:
No tolerance is allowed if the label states that a product contains one fiber (exclusive of
allowed amounts of ornamentation or decorative trim). For example, if a blouse contains 97 percent silk and three percent polyester, you cannot label it “100% silk” based
on the three percent tolerance. The 3% polyester was intentionally added to the fabric.
Therefore, labeling the blouse “100% silk” would be intentional mislabeling.
6. Round to the nearest whole number: Fiber percentages may be rounded to the nearest whole number.
Example:
Page 23
60.4% Polyester, 39.6% Cotton can be labeled 60% Polyester, 40% Cotton.
Apparel: Format of Labels
Generally, a label must be affixed to each apparel and textile product and must be of such durability as to remain
attached to the products and its package throughout any distribution, sale, resale and until sold and delivered to the
ultimate consumer. Additionally, the labels must be legible and sufficiently permanent so that they will remain on the
article until it reaches the ultimate purchaser unless deliberately removed.
1. English: Label disclosures regarding country of origin, fiber content, and company name or RN must be made in
English.
2. Legibility: Label disclosures regarding country of origin, fiber content, and company name or RN must be clearly
legible, conspicuous, and in a readily accessible format. The words of required label disclosures cannot be abbreviated, designated by ditto marks, or placed in footnotes.
3. Placement on Label: The country of origin must always be on the front side of the label, while fiber content and the
identity of the manufacturer or dealer may appear on the back of a label. Note: Do not identify the manufacturer on
the label of any Private Label Product; instead, you must identify the appropriate MGM MIRAGE entity.
4. Fiber Disclosure: All parts of the fiber content information must be in type or lettering of equal size and conspicuousness and must appear in immediate proximity to each other. For example, your label cannot say” 80% polyester,
20% SILK,” because silk is emphasized by using capital letters.
5. Addition of Other Information: Other non-required information also may appear on the label with the required disclosures. This additional information cannot be deceptive or misleading and cannot minimize, detract from, or conflict with the required information.
Page 24
Apparel: Examples of Correct Labels
100% Lyocell
Made in Mexico
RN 00003
front
100% Cotton
Machine wash warm
Tumble dry medium
Warm iron
Made in New Zealand
Kangaroo Imports,
front
Page 25
55% polyester
45% cotton
Size 10
Made in USA
RN 00001
100% Silk
Made in USA
Dry clean only
front
Elegant Lines
Size 10
Made in USA of
imported fabric
front
front
Front/back of
same label
100% Silk
Dry clean only
RN00001
back
Apparel: Mechanics of Labeling
You must comply with regulations regarding where and how labels must be attached to apparel.
County of Origin/RN/Fiber Content Labels
Affixation
1. Garments with Necks: In a garment with a neck, the label disclosing the country of
origin (on the front) must be attached to the inside center of the neck, either midway
between the shoulder seams or very near another label attached to the inside center of
the neck. The fiber content and manufacturer or dealer identity can appear on the
same label (front or back) or on another conspicuous and readily accessible label(s) on
the inside or outside of the garment.
A label is required to be
affixed to each textile
product.
2. Garments without Necks/Other Textiles: On products without necks, the required information must appear on a conspicuous and readily accessible label(s) on the
inside or outside of the product. For example, in a skirt or pair of slacks, a location on
the inside of the waistband would be conspicuous and accessible. The inside of a
pocket or pant leg would not be conspicuous or accessible.
Care Labels
The care instructions must be attached so they can be seen or easily found by consumers at the point of sale. If care labels cannot be seen easily because of packaging, additional care information must appear on the outside of the package or on a hang tag attached to the product.
Labels must be sewn in
or otherwise permanently affixed so that
they remain attached
throughout any distribution, sale, resale and
until sold and delivered
to the ultimate consumer.
The marking must be
legible and sufficiently
permanent so that it will
remain on the article
until it reaches the ultimate purchaser unless
deliberately removed.
Page 26
Apparel: Flammability
Ensure that clothing products you sell to MGM MIRAGE comply with the following flammability requirements. See
page 51 for information on flammability requirements for children’s sleepwear.
1. Supply Class 1 Textiles to MGM MIRAGE: All clothing products provided to
MGM MIRAGE must meet Class1 requirements for flammability. According to the
Consumer Product Safety Commission (“CPSC”), flammability testing has shown that
the following fabrics consistently pass as Class 1 textiles and are exempt from the reasonable and representative testing requirements for firms issuing a flammability guaranty on these fabrics: (1) plain surface fabrics, regardless of fiber content, weighing 2.6
ounces per square yard or more; and (2) all fabrics (both plain surface and raised-fiber
surface) regardless of weight, made entirely from any of the following fibers or entirely from a combination of these fibers: acrylic, modacrylic, nylon, olefin, polyester,
and wool.
2. Limitation on Supply of Class 2 Textiles to MGM MIRAGE: Class 2 products exhibit intermediate flammability. Do not supply Class 2 products to MGM MIRAGE
unless you disclose the fact that it is a Class 2 product and MGM MIRAGE consents.
3. Limitation on Supply of Class 3Textiles to MGM MIRAGE: Class 3 textiles ex-
hibit rapid and intense burning and are dangerously flammable. You cannot use Class
3 textiles in clothing. Never supply Class 3 textiles to MGM MIRAGE.
Note: Fabrics likely to be classified as Class 2 or Class 3 textiles include sheer rayon or
silk, rayon chenille, reverse fleece or sherpa of cotton or cotton blend, and certain cotton
terry cloth.
CPSC Classes
of Textiles
Class 1 flame spread time of
3.5 seconds or more for plain
surface fabrics, of more than 7
seconds for raised surface fabrics, or 0-7 seconds for raised
surface fabrics with no ignition
or melting of the base fabric.
Class 2 (for fabrics with raised
fiber surfaces) have a flame
spread time from 4 to 7 seconds inclusive, and a base fabric that ignites or melts.
Class 3 textiles have a flame
spread time of less than 3.5
seconds for smooth plain surface fabrics, and less than 4
seconds for raised surface fabrics with a base fabric that
melts or burns from other than
the igniting flame.
See CPSC web site for testing
methodology.
Page 27
JEWELRY
Jewelry: Overview
This section covers requirements for identifying, grading, manufacturing, supplying, distributing, selling and offering
for sale any jewelry products.
1. What laws apply to jewelry industry products? The “Guide for Jewelry, Precious Metals and Pewter Industries” sets forth regulations governing jewelry products. In addition, there are regulations for the watch industry and anti-laundering
for dealers in precious metals, stones and jewels. The National Stamping Act, 15
U.S.C. Chapter 8, sets forth rules on stamping gold or silver or manufactured
goods.
2. Who enforces these laws? The Federal Trade Commission (“FTC”) enforces the
laws and regulations applicable to jewelry industry products.
3. What are the key components of the regulations? The FTC regulations generally prohibit making any misrepresentations about the characteristics of jewelry
products and require certain disclosures regarding jewelry products. The regulations also contain specific requirements for use of certain terms, such as genuine,
flawless, synthetic, and “rust proof.” Thus, it is important to ensure that you use
each term in accordance with the regulations.
Do not supply any jewelry products bearing the BELLAGIO mark. Due to a
special circumstance, MGM MIRAGE will not purchase any jewelry products,
clocks or watches bearing the BELLAGIO trademark.
Products Covered
Gem stones (real and
imitation)
Pearls (natural, cultured
and imitation)
Optical frames, pens,
pencils, flatware, hollowware, watch bands
fabricated from precious
metals (gold, silver and
platinum group metals)
Precious metal alloys
(and imitations)
All articles made from
pewter
Page 28
Jewelry: Deceptive Acts
Do not make any express or implied misrepresentations of the characteristics of jewelry products.
1.
No express misrepresentations of product characteristics: It is illegal to misrepre-
sent the type, kind, grade, quality, quantity, metallic content, size, weight, cut, color,
character, treatment, substance, durability, serviceability, origin, price, value, preparation, production, manufacture, distribution, or any other material aspect of any jewelry product.
2. No implied misrepresentations of product characteristics: It is illegal to use any
illustration or depiction on product material, packaging, etc., which misrepresents any
of the characteristics identified in the preceding paragraph.
3. No misrepresentations regarding hand-processed products: It is illegal to falsely
represent that any industry product is hand-made, hand-wrought, hand-forged, handengraved, hand-finished or hand-polished.
4. Representations regarding grade: If you make any representation regarding the
grade assigned to a product, you should disclose the grading system used.
5. Representations regarding corrosion: Do not use the terms "corrosion proof,"
"non-corrosive," "rust proof," or similar terms to describe a product unless all parts of
the product will be immune from rust and other forms of corrosion during the life expectancy of the product. Similarly, do not use "corrosion resistant," "rust resistant," or
similar terms to describe a product unless all parts are not be subject to material damage by corrosion or rust during the major portion of the life expectancy of the product
under normal conditions of use.
Page 29
Federal Trade
Commission
<ftc.gov>
Gemological Institute
of America
<gia.edu>
American Gem
Society
<ags.com>
Jewelers of America
<jewelers.org>
Jewelry: Quality Marks
Follow these requirements for disclosing the composition of jewelry products.
1. What is a quality mark?: The term “quality mark” means any letter, numeral, symbol, word, or any combination thereof, that has been stamped, inscribed, or otherwise
placed on any jewelry product and which indicates that the product is composed
throughout of any precious metal or any precious metal alloy or has a surface or surfaces on which there has been plated or deposited any precious metal or precious metal
alloy.
2. No misleading quality marks: Do not place a quality mark on a product in which the
words or letters appear in greater size than other words or letters of the mark when
the impression would be misleading as to the metallic composition of all or part of the
product.
3.
Quality marks applicable to part of a product: Do not place a quality mark on an
industry product which is applicable to only part of the product, without disclosing
this fact.
4. Misuse of Descriptive Terms: Do not use "real," "genuine," "natural," "precious,"
"semi-precious," or similar terms to describe any industry product that is manufactured or produced artificially.
5. Specific Marking Requirements: The FTC Jewelry Guide provides specific requirements for marking gold, silver, vermeil, pewter, platinum group products, diamond,
gem stones, pearls, and watches. See the FTC Jewelry Guide at <http://
www.ftc.gov/bcp/guides/jewel-gd.htm> for specific requirements.
Examples
The following are quality marks whether used
alone or in conjunction
with "filled," "plated,"
"overlay," or
"electroplated":
Gold
Platinum group metals
(including Platinum,
Iridium, Palladium,
Ruthenium, Rhodium,
and Osmium)
Silver
Sterling
Vermeil
Page 30
Overview
FOOD
This section contains the requirements for all food products. The requirements for food labels, in particular, are very
specific. It is important to ensure that you review and comply with the requirements for each food product.
1. What laws apply to food products? There are several federal laws that apply to
food products including, most importantly: (1) the Federal Food, Drug, and Cosmetics Act (“FDCA”), which is intended to protect consumers from unsafe or deceptively
labeled or packaged products; and (2) the Nutrition Labeling and Education Act of
1990 (“NLEA”), which is designed to prevent deceptive and misleading claims on labels and to provide nutrient content and health claims to assist consumers in dietary
practices. Some states and local governments also regulate food.
2. Who enforces these laws? The Food and Drug Administration (“FDA”) enforces
the federal laws and regulations applicable to food products.
3. Are there exemptions? Yes, certain foods and certain businesses are exempt from
the FDA requirements. The text box at the right summarizes the exemptions. However, MGM MIRAGE expects that all of its vendors will comply with the FDA requirements, even if the vendor is exempt from the requirements.
4. What are the key components of the regulations? The key components of the
regulations are: (1) disclosure of certain information about the food product (such as
ingredients); (2) nutrition labeling; and (3) health claims.
Vendors must notify MGM MIRAGE at the time of purchase the shelf life of food
products supplied to MGM MIRAGE.
Page 31
Exempt Foods
• Served for immediate
consumption
• Ready-to-eat and prepared on site
• Plain coffee and tea,
some spices, foods with no
significant nutrients
Exempt Businesses
• Businesses with <100
FTE employees and U.S.
annual food sales of
<100,000 units
• U.S. companies (other
than importers) with <10
FTE employees and annual sales of <10,000
units of food
• Retailers with U.S.
annual gross sales of
<$500,000 or <$50,000 in
food sales to consumers
Food: Basic Labeling Elements
The name of the food and the net quantity must appear on the portion of the package most likely to be seen by
consumers. Other required information must be disclosed on the information panel.
1. Principal display panel (“PDP”): The PDP is the portion of the package that is
most likely to be seen by the consumer at the time of purchase. Many containers
are designed with two or more different surfaces that are suitable for display as
the PDP. These are alternate PDPs.
The following label statements must appear on the PDP:
• “Statement of identity,” which is the name of the food
• Net quantity statement or amount of product (in bottom 30% of PDP)
2. Information panel: The information panel is the label panel immediately to the
right of the PDP as displayed to the consumer. If this panel is not usable due to
package design and construction (e.g., folded flaps), then the information panel is
the next label panel immediately to the right.
3. Information panel labeling: This refers to the label statements that are generally required to be placed together, without any intervening material, on the information panel, if such labeling does not appear on the PDP. These statements
include the name and address of the manufacturer, packer or distributor (MGM
MIRAGE entities for Private Label Products), the ingredient list (in descending
order of prominence), and nutrition labeling.
4. Serving size reference: This is the amount of food customarily eaten at one
time. The serving sizes are based on the FDA-established list of “Reference
Amounts Customarily Consumed Per Eating Occasion.” See <http://
www.access.gpo.gov/nara/cfr/waisidx_99/21cfr101_99.html>
Page 32
Food: Name of Food
Put the name of the food on the PDP and on any alternative PDP.
1. Definition of “Statement of Identity”: The statement of identity means the name
of the food.
The common or usual name of the food, if the food has one, should be
used as the statement of identity.
Examples of
Common Names
of Foods
Candy
If there is no common or usual name, then an appropriate descriptive
name, that is not misleading, should be used.
Chocolate bar
Fanciful names (such as “Frito’s”) are permitted as the standard of
identity when the nature of the food is obvious and commonly used
and understood by the public.
Corn chips
2. Placement: The name of the food must appear on the PDP as well as on any alternate PDP. Place the statement of identity in lines generally parallel to the base of
the package.
3. Prominence: The statement of identity must be in bold type. The type size must be
reasonably related to the most prominent printed matter on the front panel and
should be one of the most important features on the PDP. Generally, this is considered to be at least 1/2 the size of the largest print on the label.
Cookies
Crackers
Fruit snacks
Ice cream
Mints
Mixed nuts
Peanuts
Popcorn
Pretzels
Potato chips
Page 33
Food: Nutrient Claims
Claims regarding the nutritional value of food products must follow these requirements.
1. Definition: A nutrient content claim is a claim on a food product that characterizes
the level of a nutrient in the food (e.g., “low fat” or “high in oat bran”).
2. Type-size requirement: A nutrient content claim may be no more than 2x the type
size of the statement of identity.
3. Disclosure statements: A disclosure statement calls the consumer’s attention to nutrients in the food that may increase the risk of a disease or health-related condition.
The statement is required when a nutrient in a food exceeds certain prescribed levels.
FDA Regulations
on Trans Fat
As of January 1, 2006, the
FDA requires disclosure of
trans fat on the Nutrition
Facts label directly below
the disclosure of Saturated
Fats.
4. Prominence and placement of disclosure statement: The disclosure statement
must be in legible boldface type, in distinct contrast to other printed or graphic matter, and in a type size at least as large as the net quantity of contents. It must be
placed immediately adjacent to the claim, with no intervening material.
5. Implied nutrient content claims: These claims describe the food or an ingredient
in a manner that suggests that a nutrient is absent or present in a certain amount
(e.g., “high in oat bran”) or suggests that the food, because of its nutrient content,
may be useful in maintaining healthy dietary practices and is made in association
with an explicit claim about nutrition (e.g., “healthy, contains 3 (g) of fat”).
6. Relative claims: For all relative claims, percent (or fraction) of change and identity
of reference food must be declared in immediate proximity to the most prominent
claim. Quantitative comparison of the amount of the nutrient in the product per labeled serving with that in reference food must be declared on information panel.
Note: There are special rules for size and placement, as well as what foods can be
used as reference foods.
Page 34
Food: Health Claims
Health claims on food labels refer to statements that characterize the relationship of the food product to a disease or
health-related condition. All health claims must meet certain general criteria. See <fda.gov> for information on
specific health claims.
1. Single location: All claims must be in one place without intervening material.
2. Relationship to disease: The claim must be limited to the value that intake or reduced intake may have on a disease
or health condition. The claim must use "may" or "might" to express the relationship between substance and disease.
3. Simplicity: The claim must enable the public to understand the information provided and the significance of the information in the context of a total daily diet. The claim must not quantify any degree of risk reduction in disease. The
claim must indicate that disease depends on many factors.
4. Not for infants: The claim must not be represented for infants less than 2 years of age.
5. Nutrient requirements: The food must contain, without fortification, 10% or more of the Daily Value for at least one
of six nutrients (dietary supplements excepted): Vitamin A (500 IU); Calcium (100 mg); Vitamin C (6 mg); Protein (5
g); Iron A(1.8 mg); and Fiber (2.5 g).
6. Disqualifying nutrients: The food must contain less than the specified
levels of four disqualifying nutrients identified in the table.
Disqualifying
Nutrients
Foods
Main
Dishes
Meal
Products
Fat
13 g
19.5 g
26 g
Saturated Fat
4g
6g
8g
Cholesterol
60 mg
90 mg
120 mg
Sodium
480 mg
720 mg
960 mg
7. Truthful: The claim must be complete, truthful, and not misleading.
Page 35
Food: Labeling Format
All food products must contain a nutritional facts label following either the nutritional format label shown below or,
where applicable, the simplified format. There are some format exemptions for small and medium sized packages.
1. General requirements: See the text
box for the recommended specifications for the nutrition facts. Minimum requirements are set forth in
the Code of Federal Regulations at
21 CFR Part 101.9(b).
Suggested typesetting specifications for “Nutrition Facts”
2. Simplified label format: The simplified format is allowed when the
food contains insignificant amounts
of 7 or more of the mandatory nutrients and total calories. The simplified format is: (1) show total calories,
total fat, total carbohydrate, protein,
and sodium; (2) identify other nutrients, along with calories from fat, if
they are present in more than insignificant amounts.
Note: “Insignificant” means that a
declaration of zero could be made in
nutrition labeling, or, for total carbohydrate, dietary fiber, and protein,
the declaration states “less than 1 g.”
Page 36
Food: Labeling Format (continued)
FDA regulations provide for the following exemptions for packages of a certain size or with formatting issues.
Exemptions
Packages with <12 sq. inches of labeling space
do not have to carry nutrition information unless a
nutrient content or health claim is made. However,
an address or telephone number for consumers to
obtain the nutrition information must be provided.
Linear format
Packages with <40 sq. inches of labeling space
and insufficient space for the full vertical format can
use the tabular format or linear format.
Packages with >40 sq. inches of labeling space
but insufficient space for the vertical format can use
the “side-by-side” format, in which the bottom part
of the Nutrition Facts label is placed immediately to
the right and separated with a line.
Tabular format
Packages with insufficient vertical space (i.e.,
about 3 inches) can use the tabular format.
Single Serving Containers may omit the "servings
per container" declaration and the metric equivalent
portion. The serving size must be a description of
the container, i.e., 1 can, 1 bag, etc.
Page 37
Single serving format
Food: Allergens
The Food Allergen Labeling and Consumer Protection Act of 2004 (“FALCPA”) was enacted in August 2004, and
addresses, among other issues, the labeling of foods that contain certain food allergens. FALCPA requires that all
packaged foods that are labeled on or after January 1, 2006 must comply with allergen labeling requirements.
1. Definition of “Major Food Allergen”: A "major food allergen" means any of the following foods (or any protein derived from any of the following foods):
Milk
Egg
Fish
Crustacean shellfish
Tree nuts
Wheat
Peanuts
Soybeans
2. Disclosure of Major Food Allergens: All food products that contain major food allergens must make this disclosure
on the food label.
3. Wording of the Disclosure: The disclosure must state the word "contains" followed by the names of the food
sources of all major food allergens that either are used, or are contained in ingredients used, to make the packaged
product. Alternatively, additional wording may be used for a "contains" statement to more accurately describe the
presence of any major food allergens, provided that the following three conditions are met:
(1)
(2)
(3)
The word "Contains" with a capital "C" must be the first word used to begin a "Contains" statement.
The names of the food sources of the major food allergens declared on the food label must be the same as
those specified in the FALCPA, except that the names of food sources may be expressed using singular
terms and the synonyms "soy" and "soya" may be substituted for "soybeans."
If included on a food label, the "Contains" statement must identify the names of the food sources for
major food allergens that either are in the food or are contained in ingredients of the food.
Page 38
Food: Imported Foods
Foods imported into the United States must contain required labels in English and identify the country of origin.
1. Required language: All required label statements
must appear both in English and in the foreign language if any representations appear in a foreign language.
2. Country of origin: The law requires the country of
origin of the product to be disclosed in a conspicuous
manner. It does not need to be placed on the PDP. If
a domestic firm's name and address is declared as the
firm responsible for distributing the product, then the
country of origin statement must appear in close
proximity to the name and address and be at least
comparable in size of lettering. For Private Label
Products, you must identify an MGM MIRAGE entity.
3. Nutrition labeling: When nutrition labeling must
be presented in a second language, the nutrition information may be presented in separate nutrition labels for each language or in one label with the second
language, translating all required information, following that in English. See the example to the right. Numeric characters that are identical in both languages
need not be repeated.
Page 39
COSMETICS
Overview
This section covers the requirements for “cosmetic” products, which include bath and body products.
1. What are “cosmetics”? Cosmetics are products intended to be applied to the human
body for cleansing, beautifying, promoting attractiveness, or altering the appearance
without affecting the body's structure or functions. Soap products consisting primarily
of an alkali salt or fatty acid and making no label claim other than cleansing of the human body are not considered cosmetics under the law. However, if cosmetic claims
(e.g., moisturizing, deodorizing, skin softening, etc.) are made on the label, the product
is a cosmetic. Synthetic detergent bars are also considered cosmetics, although they
may be labeled “soap.”
Examples of
Cosmetics
Deodorants
Eye and facial make-up
Fingernail polish
2. What laws apply to cosmetics? Two major laws apply to cosmetics: (1) the Federal
Food, Drug, and Cosmetics Act (“FDCA”), which is intended to protect consumers
from unsafe or deceptively labeled or packaged products; and (2) the Fair Packaging &
Labeling Act (“FP&L”), which ensures that packages and their labels provide consumers with accurate information about the quantity of contents and facilitate value comparisons.
Lipsticks
3. Who enforces these laws? The Food and Drug Administration (“FDA”) enforces the
federal laws and regulations applicable to food products. State and local agencies enforce applicable state and local laws and regulations.
Sunscreens
Lotions
Perfumes
Shampoos
Skin creams
Toothpastes
Page 40
Cosmetics: Misbranded & Adulterated
Cosmetic products must not be misbranded, mislabeled, or adulterated.
1. A cosmetic product is considered misbranded or mislabeled in violation of federal
law if:
The labeling is false or misleading.
The labeling does not state: (1) the name and address of the manufacturer,
packer or distributor (for Private Label Products, this must be an MGM
MIRAGE entity); and (2) the net quantity of contents.
The required information is not stated prominently, with conspicuousness
and in such terms that it is understandable by consumers under customary
conditions of purchase and use.
The container or its fill is misleading.
A material fact is not revealed on the label.
2. A cosmetic product is adulterated if:
It may be injurious to users under conditions of customary use because it contains, or its container is composed of, a potentially harmful substance.
It contains filth.
It contains a non-permitted, or in some instances non-certified, color additive.
It is manufactured or held under unsanitary conditions whereby it may have
become injurious to users or contaminated with filth.
Page 41
Note on
Expiration Dates
There are no regulations or requirements
under federal law that
require cosmetic manufacturers to print expiration dates on the labels of cosmetic products. Manufacturers
have the responsibility
to determine shelf life
for products as part of
their responsibility to
substantiate product
safety. However, the
FDA contends that failure to do so may cause a
product to be adulterated or misbranded.
Cosmetics: Prohibited Ingredients
Certain ingredients are prohibited or restricted from use in cosmetic products. MGM MIRAGE also discourages
vendors from using other ingredients that have been identified as unsafe or potentially unsafe.
1. Prohibited and restricted ingredients: Federal regulations specifically prohibit or
restrict the use of certain ingredients in cosmetics. These ingredients are listed in the
text box at the right.
2. Other ingredients of concern: Cosmetic and fragrance trade associations have recommended eliminating or limiting maximum levels of certain ingredients associated
with health risks. For example, the Cosmetic Ingredient Review (“CIR”) Expert Panel,
an independent panel of scientific experts, has found certain ingredients unsafe. Similarly, the International Fragrance Association (“IFRA”) Code of Practice currently
recommends against the use of more than 30 substances as fragrance materials and
advises limiting the use of many more. Check with the CIR and IFRA for a complete
list.
3. Contaminants: The risk of introducing contaminants into a product is always a concern in cosmetic manufacture, whether they are introduced through contaminated raw
ingredients or form during the manufacturing process. Nitrosamines and dioxane are
among those contaminants that may form during the manufacturing process and raise
safety issues. The FDA has expressed its concern about the contamination of cosmetics with nitrosamines. Cosmetics containing nitrosamines may be considered adulterated.
Prohibited and
Restricted Ingredients
Hexachlorophene
Halogenated salicylanilides
Mercury compounds
Chloroform
Chlorofluorocarbon propellants
Zirconium complexes
Bithionol
Methylene chloride
Page 42
Cosmetics: Warnings
FDA regulations require that the label of a cosmetic product shall bear a warning statement in certain cases.
1. Warning statements required: The label of a cosmetic product shall bear a warning statement whenever “necessary
or appropriate” to prevent a health hazard that may be associated with the product.
2. Placement of warning statements: Warning statements must appear on the label prominently and conspicuously
as compared to other words, statements or designs so that it is likely to be read by ordinary consumers at the time of
purchase and use. The lettering must be in bold type on contrasting background and at least 1/16 inch in height.
3. Ingredient and product safety: Each ingredient used in a cosmetic product and each finished cosmetic product
must be adequately substantiated for safety prior to marketing. Ingredients and products that are not adequately substantiated prior to marketing must contain the following warning:
Warning--The safety of this product has not been determined.
This warning is not required for such an ingredient or product if: (1) the safety of the ingredient or product had been
adequately substantiated prior to development of new information; (2) the new information does not demonstrate a
hazard to human health; and (3) adequate studies are to determine the safety of the ingredient or product.
4.
Self-pressurized containers: Include the following warning: “Warning--Avoid spraying in eyes. Contents under
pressure. Do not puncture or incinerate. Do not store at temperature above 120 deg. F. Keep out of reach of children.” If the propellant includes a halocarbon or a hydrocarbon, the container must have the following warning:
“Warning--Use only as directed. Intentional misuse by deliberately concentrating and inhaling the contents can be
harmful or fatal.”
Page 45
Cosmetics: Warnings (continued)
5. Detergent bubble bath products: Include the following warning: “Caution — Use only as directed. Excessive use
or prolonged exposure may cause irritation to skin and urinary tract. Discontinue use if rash, redness, or itching occurs. Consult your physician if irritation persists. Keep out of reach of children.”
6. Feminine deodorant sprays intended for use in the genital area: Include the following warning: “Caution — For external use only. Spray at least 8 inches from skin. Do not apply to broken, irritated, or itching skin. Persistent, unusual odor or discharge may indicate conditions for which a physician should be consulted. Discontinue use immediately if rash, irritation, or discomfort develops.”
7. Sun tanning products: Sun tanning products that do not contain sunscreen must include the following warning on
the product packaging: “Warning — This product does not contain a sunscreen and does not protect against sunburn. Repeated exposure of unprotected skin while tanning may increase the risk of skin aging, skin cancer, and other
harmful effects to the skin even if you do not burn.” Note that lotions and pills marketed as "tanning accelerators"
often contain tyrosine (an amino acid). Tanning accelerators may be marketed with the claim that they enhance tanning by stimulating and increasing melanin formation. FDA has concluded that these "tanning accelerators" are actually unapproved drugs, and the agency has issued warning letters to several manufacturers of these products.
8. Other products: Other products may require warnings but no specific language is provided by regulation: (1) flammable products such as aerosol hair sprays containing alcohol and isobutane propellant (include caution statements
on the label, including avoiding heat, fire and smoking during use until the product is fully dry); (2) shampoos, rinses
and conditioners can cause eye problems that range from irritation to permanent damage, thus, appropriate warnings
should be made; (3) nail builders (elongators, extenders, hardeners, and enamels) can cause irritation, inflammation
and infection of the nail bed and nail fold, allergic reactions, brittle nails, and may be flammable.
Page 46
Cosmetics: Labeling & Packaging
All packaging of cosmetics must comply with FDA regulations.
1. Contents of the “Principal Display Panel”: The PDP must be large enough to accommodate all required label information with clarity and conspicuousness. The PDP must state:
The name of the product
The nature or use of the product
Product safety warning
An accurate statement of the net quantity of contents of the cosmetic in the package in terms of weight,
measure, numerical count, or a combination of numerical count and weight or measure.
2. Size of the PDP: The area of the PDP is for a:
Rectangular package: One entire side.
Cylindrical package: 40% of height x circumference.
Any other shape of container: 40% of total container surface, excluding top, bottom, neck, shoulder, flanges.
The PDP of a "boudoir-type" or decorative cosmetic container, e.g., cartridge, pill box, compact or special variety,
and those containing 1/4 oz or less may be a tear-away tag or tape affixed to the container. It may also be the display
panel of a card to which the immediate container is affixed.
3. Information panel: The information panel must contain directions for safe use, other product warnings, name and
place of the business marketing the product, ingredient declaration and any other required information. If the distributor is not the manufacturer or packer, this fact must be stated on the label by the qualifying phrase
"manufactured for " or "distributed by" or similar, appropriate wording. Note: Only refer to MGM MIRAGE entities
on Private Label Products.
Page 47
Cosmetics: Labeling (continued)
4. Inner-container labeling: The name of the product must appear on the front panel
of the inner container labeling. Directions for safe use, name and place of business,
net quantity of contents, any other required information must also appear on the inner container.
5. Net contents of quantity: If the cosmetic is sold at retail in an outer container, the
net contents statement must appear (1) within the bottom 30% of the PDP of the
outer container, generally parallel in line to the base on which the package rests, and
(2) on an information panel of the inner container. The bottom location requirement
is waived for PDPs of 5 square inches or less. The declaration must be:
A distinct item, separated from other printed matter by a space equal to at
least the height of the lettering used in the declaration and twice the width
of the letter "N".
The print must be in legible bold face type.
The letter height must be at least that of the lower case letter "o" and the
aspect ratio of height to width must not exceed 3:1.
6. Tamper-resistant packages: Liquid oral hygiene products (e.g., mouthwashes,
fresheners) and all cosmetic vaginal products (e.g., douches, tablets) must be packaged in tamper-resistant packages. A package is considered tamper resistant if it has
an indicator or barrier to entry (e.g., shrink or tape seal, sealed carton, tube or pouch,
aerosol container) which, if breached or missing, alerts a consumer that tampering
has occurred. The indicator must be distinctive by design (breakable cap, blister) or
appearance (logo, vignette, other illustration) to preclude substitution. The tamperresistant feature may involve the immediate or outer container or both. The package
must also bear a prominently placed statement alerting the consumer to the tamperresistant feature.
Type Size
Requirements
__________
Ingredients:
1/16” or 1/32” if the labeling surface is less than 12
sq. in.
Net Contents
1/16” if PDP <5 sq. in.
1/8” ‘if PDP 5-25 sq. in.
3/16” if PDP 25-100 sq.in.
Warnings
1/16”
All other information
Reasonably related
to panel size
Page 48
Overview
PRODUCT SAFETY
Vendors must not supply any products to MGM MIRAGE that: (a) fail to comply with any applicable consumer
product safety standard; (b) have been declared a banned hazardous product; (c) fail to comply with an order issued by
the CPSC relating to notification, repair, replacement, refund, or a prohibited act; (d) are not accompanied by a
certificate attesting the products’ conformity to safety standards; or (e) fail to comply with any labeling requirements.
1. What laws apply to ensure the safety of products, including children’s products?
The Consumer Products Safety Act, Federal Hazardous Substances Act, Flammable
Fabrics Act and Poison Prevention Packaging Act.
2. Who enforces these laws? The Consumer Product Safety Commission (“CPSC”) enforces these laws and the applicable regulations.
3. Who must comply? Manufacturers and importers are legally responsible for assuring
that the toys and other products they import, distribute and sell comply with the regulations. Accordingly, MGM MIRAGE requires vendors to ensure that toys and other
products that they supply to MGM MIRAGE comply with all applicable safety requirements.
4. Product Certification: Regulations require that, for each product subject to a consumer product safety standard, the vendor must provide a certificate attesting that the
product conforms to all applicable safety standards and shall specify any standard
which is applicable. Certificates must be based on tests of each product or upon a reasonable testing program. They must also state the name of the manufacturer or private labeler issuing the certificate and include the date and place of manufacture of the
product. Vendors must provide product certifications to MGM MIRAGE upon request.
Page 49
on Product Safety
The Consumer Products
Safety Commission web
site at <cpsc.gov> has
extensive resources on
compliance with safety
regulations, including
general requirements
and requirements by
product type.
Product Safety: Labeling for Small Parts
Federal law bans small part toys intended for children under age 3 and requires disclosures for toys intended for
children between ages 3 and 6.
1. Toys with small parts are banned for children under 3 years old: CPSC regulations ban toys and other articles
that are intended for use by children under three and that are or have small parts or that produce small parts when
broken. A small part is any object that fits completely into a specially designed test cylinder 2.25 inches long by 1.25
inches wide that approximates the size of the fully expanded throat of a child under three years old.
2. Toys with small parts intended for 3-6 year olds: The packaging of any toy or game intended for use by children
who are at least 3 years old but not older than 6 years old, any descriptive material that accompanies the toy or game,
must include the cautionary statement shown in the text box.
3. Special warnings: CPSC regulations provide for special warnings for products intended for 3-6 year olds that contain latex balloons, small balls, or marbles.
4. General labeling requirements: The warning label must appear in a box or rectangular shape on the principal display panel and comply with the size requirements provided by CPSC regulations.
5. Electric toys: There are extensive regulations for manufacturing, testing and labeling electrically operated toys intended for use by children. See the Code of Federal Regulations, 16 CFR 1505.
Page 50
Product Safety: Age Guidelines
The CPSC provides detailed guidelines on determining the appropriate age category for toys.
1. What is age labeling? Age labeling refers to the specification on toys and other childrens’ products identifying the
range of ages that the product is suited for. The labeling provides parents and other consumers with guidance for selecting proper toys for children.
2. Identify the appropriate age category: It is important to accurately determine the appropriate age category for
toys, and to label, promote, and market those toys to that age group. The CPSC publishes a 313-page guide entitled
“AGE DETERMINATION GUIDELINES: Relating Child’s Ages to Toy Characteristics and Play Behavior.” The
guide is available on the CPSC web site. The guide provides detailed information on determining age guidelines based
on the type of product.
3. Err on the side of safety: Ensure that your toys and other childrens’ products comply with the requirements for the
lowest age group for which the product is intended:
If a toy being tested for small parts is not clearly and conspicuously age labeled, or is inappropriately age labeled,
CPSC performs the most stringent test from the two age groups for children under 3 years of age.
The CPSC subjects toys that are appropriately age labeled for children of ages spanning more than one age group
to the most stringent tests specified for the age groups involved. For example, if a toy is intended for children 12
to 24 months of age, CPSC staff subjects it to the most stringent use and abuse tests for the 0 through 18 month
and 19 through 36 month age groups.
If CPSC staff determines that a toy is intended for children under 3 years of age, the toy is subject to the Small
Parts Regulation regardless of its age labeling.
Page 43
Product Safety: Banned Toys
The CPSC has banned the following toys.
1. Toy rattles: Any toy rattle containing, either internally or externally, rigid wires, sharp protrusions, or loose small
objects that have the potential for causing lacerations, puncture wound injury, aspiration, ingestion, or other injury.
2. Toys with noisemaking components: Any toy with noisemaking components or attachments capable of being dislodged that could cause laceration, puncture wound injury, aspiration, ingestion, or other injury.
3. Dolls and stuffed animals: Any doll or stuffed animal having internal or external components that have the potential
for causing laceration, puncture wound injury, or other similar injury.
4. Toys with small parts for kids under 3 years of age: Any toy or other article intended for use by children under 3
years of age which presents a choking, aspiration, or ingestion hazard because of small parts.
5. Small balls: Any ball intended for children under three years of age that can pass through a circular hole with a diameter of 1.75 inches (44.4 mm.).
6. Electrically operated toys and other electrical operated children’s articles presenting electrical, thermal, and/or certain mechanical hazards:
7. Toys with lead paint: Toys and other articles intended for use by children that bear “lead-containing paint.”
Page 44
Product Safety: Children’s Sleepwear
Children’s sleepwear must comply with flammability requirements or be “tight fitting.”
1. Products covered: The rules cover all children’s sleepwear above size 9 months
and up to size 14. Diapers, underwear, “infant garments” sized for a child nine
months of age or younger, and “tight-fitting garments” that meet specific maximum
dimensions are exempt from the requirements of this rule, but must still meet the
flammability requirements for clothing textiles in general.
2. Flammability requirements: CPSC regulations set forth the methodology for testing children’s sleepwear for flammability. See the CPSC publication on Children’s
Sleepwear for more information at <http://www.cpsc.gov/businfo/
regsumsleepewear.pdf>.
3. Tight-fitting garments: Tight-fitting garments need not be flame resistant because they are made to fit closely against a child’s body. Tight-fitting sleepwear
does not ignite easily and, even if ignited, does not burn readily because there is little oxygen to feed a fire. See Children’s Sleepwear Regulations in the Code of Federal Regulations at 16 CFR Part 1615 and 1616 for detailed requirements establishing that a product is “tight fitting” within the meaning of the regulations.
4. Labeling: Each article of children’s sleepwear must have a permanent label with
instructions on how to take care of the garment to protect it from chemicals or
other treatments that can reduce its flame resistance. Children’s sleepwear must
have a permanent label with a unit identification (number, letter, date, or combination thereof) so manufacturers can track the garment’s associated fabric and garment production lots in the event of a recall. In addition, tight-fitting clothing
should utilize the warnings labels to the right.
Page 51
Warning Labels for
Tight-Fitting Garments
IMPORTS
Imports: Marking
Vendors who import products into the U.S. for supply to MGM MIRAGE are required to comply with all applicable
import requirements and procedures, including clearing customs, paying duties, and marking requirements, etc.
Every product of foreign origin entering the United States must be legibly marked with the English name of the
country of origin (unless an exception from marking is provided for in the law) to inform the ultimate purchaser in the
U.S. of the country of origin. See labeling requirements for imported apparel (page 20) and imported foods (page 39).
1. What is the “Country of Origin”?
duced, or grown.
The country of origin is the nature where the product was manufactured, pro-
2. Use of “Made In”: The phrase “made in” is required only if the name of any locality other than the country or locality in which the article was manufactured appears on the article or its container and may mislead or deceive the ultimate purchaser. The marking “made in (country)” or other words of similar meaning must appear in close proximity
to, and in comparable size letters of, the other locality to avoid possible confusion.
3. Use of “Assembled In”: Use of the words “assembled in” may be used to indicate the country of origin of an article
where the country of origin of the article is the country in which the article was finally assembled. “Assembled in”
may be followed by the statement “from components of (the name of the country or countries of origin of all the components).”
4. Legibility: The marking must be legible. This means it must be of an adequate size, and clear enough, to be read
easily by a person of normal vision.
5. Location: The marking should be located in a conspicuous place. It need not be in the most conspicuous place, but it
must be where it can be seen with a casual handling of the article. Markings must be in a position where they will not
be covered or concealed by subsequent attachments or additions. The marking must be visible without disassembling
the item or removing or changing the position of any parts.
Page 52
Imports: Marking (continued)
6. Abbreviations and variant spellings: Abbreviations that unmistakably indicate the name of a country, such as “Gt.
Britain” for Great Britain , are acceptable. Variant spellings which clearly indicate the English name of the country of
origin, such as “Brasil” for Brazil, are acceptable. However, it is always preferable to spell out the country’s name in
full, because any abbreviation may be a cause for confusion.
7. Permanence: The article should be marked as indelibly and permanently as the nature of the product will permit.
Marking that will not remain on the article during handling or for any other reason except deliberate removal is not
a proper marking.
8. Methods of marking: The best form of marking is one which becomes a part of the article itself, such as branding,
stenciling, stamping, printing, molding, and similar methods. Other forms of marking will also be acceptable if it is
certain that the marking will remain legible and conspicuous until the article reaches the ultimate purchaser in the
U.S. It is important that this marking withstand handling. This means it must be of a type that can be defaced, destroyed, removed, altered, obliterated, or obscured only by a deliberate act.
9. Exceptions to marking requirements: Certain goods are exempt form marking requirements, such as playing
cards, cigars, cigarettes, medicines, certain coffee and tea products, certain spice products, and silk scarves. However,
for such products, the immediate container must usually be marked.
10. Special marking requirements: Certain goods have special marking requirements, including apparel and textiles,
jewelry, gold, and watches and clocks. See Apparel and Jewelry sections of this manual.
Page 53
APPENDIX
All vendors are required to execute the Intellectual Property
Agreement shown on the following two pages. For your convenience, we duplicated the agreement and included it in this
manual for easy reference.
Intellectual Property Agreement
This Intellectual Property Agreement is entered into between MGM MIRAGE RETAIL (“MMR”) and Vendor (as identified below) on the Effective Date set forth below.
1.
DEFINITIONS OF “WORKS”: “Works” refers to all artwork, images, ornamental designs, drawings, renderings,
photographs, video, audio, and other copyrightable works regardless of their form that the Vendor authors, produces, designs, creates, conceives, makes for or supplies to MMR for use on or in connection with goods supplied by Vendor to
MMR at any time either before or after the Effective Date and including, but not limited to, those materials identified in
the attachment, if any, to this Agreement (collectively, “Works”).
2.
GRANT OF RIGHTS: Vendor acknowledges that the Works are works made for hire specially ordered or commissioned by MMR. If, for any reason, the Works are not deemed to be works made for hire, then Vendor hereby irrevocably and perpetually assigns all right, title and interest in and to the copyrights in the Works to MMR. Vendor hereby
waives any and all moral rights in and to the Works. Vendor hereby appoints MMR as the Vendor’s authorized agent to
execute any agreements or other documents on behalf of Vendor that MMR believes are reasonably necessary to establish, protect, or enforce MMR’s rights in the Works. Vendor agrees that MMR and its successors, assignees, licensees,
and agents own the right to display, distribute, make, use, sell, offer for sale, market, license, reproduce, modify, adapt,
revise and publish any and all of the Works alone or in connection with any goods or services worldwide in any and all
media now known or hereafter known, and without attribution or additional compensation to Vendor. Vendor shall not
use the Works or sell goods embodying the Works unless expressly permitted in writing by MMR.
3.
LICENSE OF OTHER IP RIGHTS: In the event that Vendor supplies any goods to MMR that are covered by
or embody any patented invention or utilize any other intellectual property and the goods utilize any of the Works or
any trademarks owned by MGM MIRAGE or its subsidiaries and affiliates, Vendor hereby grants to MMR and its successors, assignees, and licensees, a non-exclusive, irrevocable, perpetual and fully paid license to make, use, offer for sale,
and sell such goods.
4.
DELIVERY OF WORKS: Upon demand by MMR, Vendor shall deliver all Works to MMR within three (3)
days of the date of the demand at the address designated by MMR and in the form directed by MMR. Vendor shall not
fail or refuse to comply with this requirement for any reason (including, but not limited to, the existence of a dispute between MMR and the Vendor or monies owed to the Vendor).
5.
WARRANTIES: Vendor warrants that the Works and any products supplied by Vendor to MMR do not infringe, violate or impair any copyrights, trademarks, patents, trade secrets, rights of publicity or other rights of any person or entity. Vendor warrants that it is the owner of all right, title and interest in any intellectual property assigned or
licensed under this Agreement or otherwise conveyed to MMR.
6.
CONSIDERATION: Vendor acknowledges that MMR has provided adequate consideration for this Agreement
by purchasing goods from Vendor pursuant to one or more purchase orders.
7.
PRE-EXISTING WORKS: Vendor shall not acquire or claim any rights whatsoever in any intellectual property
provided by or for MMR or MGM MIRAGE or its subsidiaries or affiliates to the Vendor in connection with Vendor’s
supply of goods to MMR. Vendor shall not have the right to use any such intellectual property of unless MMR consents
in writing.
8.
CHOICE OF LAW AND VENUE: This Agreement shall be governed by the laws of the State of Nevada, except
to the extent governed by federal law. Any dispute or lawsuit arising out of or relating to the subject matter of this
agreement shall be resolved in a state or federal court of competent jurisdiction in Clark County, Nevada.
EXECUTED ON ______________ (“Effective Date”)
________________________________
Name of Vendor
________________________________
Signature of Principal of Vendor
MGM MIRAGE RETAIL
__________________________________
Signature
IMPORTANT: VENDORS ARE REQUIRED TO SIGN AND RETURN THIS FORM TO:
MGM MIRAGE RETAIL
P.O. Box 98566
Las Vegas, Nevada 89193
Additional Resources on the Internet
Federal Trade Commission <ftc.gov>
United States Custom Service <customs.ustreas.gov>
United States Patent and Trademark Office <uspto.gov>
United States Copyright Office <copyright.gov>
Food and Drug Administration <fda.gov>
Consumer Product Safety Commission <cpsc.gov>
Prepared for MGM MIRAGE
by Lewis and Roca LLP:
Michael J. McCue, Partner
Flavia Campbell, Associate
Lizette Almeda Zubey, Associate
Christopher M. Law, Associate
Carlene Arnold, Paralegal
Tenesa Houdek, Paralegal

MGM MIRAGE Retail Complince Guide

Transcription

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