Crains New York - July 8, 2013 - (Page 11)

Manhattan beep issues are debatable I f it weren’t for Brooklyn Borough President Marty Markowitz, there wouldn’t be a Barclays Center or Atlantic Yards.Not only did he prompt Bruce Ratner to undertake the project, he provided unstinting support and political cover during the years-long struggle to overcome opposition. If Adolfo Carrión had been Bronx borough president in late 2009, the long-vacant Kingsbridge Armory today would be a retail center with hundreds of jobs, a modern supermarket and other outlets. Because the borough president was Ruben Diaz Jr., who doesn’t like low-wage retail jobs, the plan was blocked. Ultimately, the one he backed—a skating rink with fewer but higher-paying jobs—advanced. Borough presidents can make a difference, which is why on Wednesday, July 10, Crain’s will sponsor a debate among the four candidates for Manhattan borough president that will focus on important business and economic issues. You can still register by clicking on “events” at crainsnewyork.com. The Manhattan borough president’s race is different from the contests in other boroughs, which tend to be fights among the various factions of political insiders,and attracts more interest. It historically has been seen as a stepping-stone to a mayoral run—successful for David Dinkins, GREG DAVID unsuccessful for Ruth Messinger and helpful,in a way,for incumbent Scott Stringer.He withdrew from the 2013 mayoral race when he couldn’t get traction, but is now cruising toward a victory for city comptroller.The borough president race is up for grabs, with the only poll made public showing 48% of the voters are undecided. The four candidates include three politicians and one community activist. The front-runner is Upper West Side Councilwoman Gale Brewer—at least according to a poll she commissioned.Ms.Brewer is the sponsor of the paid-sick-leave bill just enacted, which is anathema to small business, and a zoning proposal to protect small retailers,which angered the real estate community. The two other council members seeking higher office are West Harlem Councilman Robert Jackson, who chairs the education committee, and Upper East Side Councilwoman Jessica Lappin. A former community board chairwoman from lower Manhattan, Julie Menin, rounds out the field, although she desperately needs to raise her profile and basement poll numbers. As in the other campaign debates, the candidates will be asked how they will improve the city’s economy and how they intend to help—and to regulate—business. Because of their advisory roles on zoning decisions and their political influence,borough presidents tend to make their biggest impact on development issues. As a result, many of the questions will focus on whether they are pro- or anti-development, as well as where they stand on key controversies: the midtown east rezoning and landmarking, to name only two. The unhappiness of the borough’s small businesses will be in the spotlight with sick leave, plans to limit tobacco sales and the perennial problems of fines and harassment. To suggest questions, just email me at gregdavid49@gmail.com. NICOLE GLAROS Patent trolls plague city’s tech startups I have worked with technology startups my entire career, and I know what entrepreneurs look like. All are tireless and passionate, and they have the courage to create something new and start a business. Collectively, America’s entrepreneurs are rebuilding our economy. In 2012, the app economy in New York state generated about $2.3 billion in wages. But every day, New York’s burgeoning tech sector is threatened as entrepreneurs face extortion by patent trolls. “Patent troll” is the fitting, common name for a “patent assertion entity.” These are companies that generally purchase patents solely for the purpose of extracting money from other companies. The patents—particularly for software—are often vague, outdated and overly broad. For example, one troll is relying on a patent granted for a fax machine to demand royalties from developers that offer inapp purchasing options to smartphone users. When the U.S. Patent and Trademark Office approves bad patents, thereby granting so-called inventors a 20-year monopoly, it’s an invitation to trolls to make a buck by taking advantage of the system. One recent graduate of TechStars, a mentorship-driven startup accelerator in New York, is an example. The founder did everything right, including getting funding and customers and hiring several employees.But he crossed onto a patent troll’s radar and was sued for patent infringement because his app presented consumers with data that were offered by the startup’s business customers (just as eBay and CarsDirect.com do every day). It is preposterous that this basic business activity is patentable, and outrageous that the troll chose to bully a startup because the settlement payment might be easier to obtain. Several months later, the startup is paying lawyers with capital that otherwise would pay for three more employees. And legal fees keep mounting. By letting patent trolls abuse a flawed system, we discourage our best innovators from becoming entrepreneurs, and we discourage investors from financing software startups. We’re slowing the pace of innovation and restraining jobs and economic growth. Sen. Charles Schumer recently introduced a bill that would help startups fight trolls by allowing more patents to be challenged in a streamlined Patent and Trademark Office proceeding, instead of waiting to be dragged into expensive federal litigation. Mr. Schumer’s bill will not solve the problem, but it is a big step in the right direction. Patent trolls are a tax on innovation, a brake on job creation and dead weight dragging on Silicon Alley. I like to think they are called trolls because they hide under a bridge that someone else designed and built, then demand outrageous tolls when real inventors cross. I am pleased that Mr. Schumer and some of his colleagues are standing up for real innovators, but we need more leaders and more job creators to put patent trolls out of the misery business. Nicole Glaros is a managing director for TechStars and co-managed TechStars NYC this spring. She is a board member of the Application Developers Alliance. BRAND NEW RETAIL 3 WEST 36TH STREET 3,600 SF Ground 1,500 SF all windowed 2nd ﬂr 1,000 SF Bsmnt at base of new luxury residential tower Vented, Ideal Restaurant, any use Adjacent Setai, Empire State Bldg, Lord & Taylor Neil Polon · 212-686-5252 · neilempiremgt@hotmail.com Empire Management July 8, 2013 | Crain’s New York Business | 11 http://www.crainsnewyork.com http://www.crainsnewyork.com/events-lawksy http://www.crainsnewyork.com/events-lawksy http://www.CarsDirect.com

Table of Contents for the Digital Edition of Crains New York - July 8, 2013

Crains New York - July 8, 2013
IN THE MARKETS
BUSINESS PEOPLE
SMALL BUSINESS
INSIDER
REAL ESTATE DEALS
OPINION
GREG DAVID
NICOLE GLAROS
IN THE BOROUGHS
TOURISM REPORT
CLASSIFIEDS
FOR THE RECORD
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - July 8, 2013