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Surf City Feud - Surfing at its Finest in the USA

Press Release October 12, 2006

Townsend Files Suit Against Huntington Beach Conference and Visitors Bureau Over Claimed "SURF CITY USA" Trademark

Noland's on the Wharf and Shoreline Surf Shop Seek to Invalidate the Bureau's claimed trademark for the Benefit of all Merchants in Santa Cruz

PALO ALTO, Calif., Oct. 12 /PRNewswire/ -- Townsend and Townsend and Crew LLP announced today the filing of a lawsuit in California Superior Court for the City and County of Santa Cruz in an effort to resolve an ongoing legal battle over use of the mark "Surf City USA" on apparel, gifts and other items.

Townsend has filed suit on behalf of Santa Cruz-based Noland's on the Wharf and Shoreline Surf Shop, both of which sell T-shirts emblazoned with the logo "Surf City Santa Cruz California USA," asking the court to declare the Surf City USA trademark obtained by the Huntington Beach Conference and Visitors Bureau to be both invalid and not infringed by Noland's and
Shoreline, as well as cancellation of the Bureau's pending trademark applications.

The suit was filed in response to a "cease and desist" letter and
follow- on demands made by the Bureau to Noland's and Shoreline as part of an orchestrated campaign to prevent Santa Cruz and local merchants from using or referring to the phrase "Surf City USA" in conjunction with the sale of any goods or services.

"Huntington Beach is attempting to co-opt a moniker that was given to Santa Cruz in the media and popular culture as far back as 1927 and to claim it exclusively as their own," remarked Townsend partner Ted Herhold.

"While our primary goal is to allow the Nolands to continue to sell their T-shirts without fear of legal action, this case is also about telling the Huntington Beach Conference and Visitor's Bureau to leave all Santa Cruz businesses alone."

Herhold also points out that the Nolands are not contending that
Huntington Beach or the residents and merchants of Huntington Beach should be precluded from using the phrase "Surf City" or "Surf City USA." "This case is not about which city has the most legitimate claim to be called the true Surf City USA; rather, this is about the freedom of individuals and merchants to conduct their business free from spurious claims of trademark
infringement," Herhold said.

"I think of 'Surf City USA' more as a state of mind, not some kind of enforceable trademark or official title," remarked Bruce Noland, who, along with his mother Ginger Noland, owns Noland's on the Wharf and Shoreline Surf Shop. "Anyone should be free to use this name in any way they choose."

Townsend will be representing Noland's on the Wharf and Shoreline Surf Shop on a pro bono basis. "We are deeply grateful to Townsend for taking this case for us. There is no way we could have afforded to fight Huntington
Beach on our own," said Noland.

The public and members of the media are invited to a press conference to be held in front of the surfer statue on Steamer Lane (about 500 feet from the Santa Cruz Lighthouse and Surfing Museum located at 701 West Cliff Drive) at 9 a.m. on Friday, October 13, to learn more about the case and to hear the opinions of other interested parties.

A copy of the complaint filed today is available on Townsend's Web site, at

Townsend teams with businesses, inventors, entrepreneurs, scientists and investors to protect their innovative products and ideas. The firm offers a full range of intellectual property services, including patent, copyright and trademark litigation, prosecution and licensing, with additional expertise in antitrust; and other complex business litigation. With offices in, San Diego, San Francisco, Palo Alto, Walnut Creek, Denver,
Seattle and Tokyo, Townsend has more than 170 attorneys, many with advanced technical degrees and extensive scientific and business experience.