The Enterprise - Utah's Business Journal by Vaughn Taylor

DesignMatters Matters Legal

UTAH’S BUSINESS JOURNAL www.slenterprise.com

THIS WEEK • Industry Briefs • Begin on page 6.

• Calendar • See page 10.

Legal Matters See page 11.

Focus U T A HW

a sat c h Fr o n t

Oil, Gas & Energy In this edition.

Oct. 10-16, 2011

Volume 41, Number 11

Brooks Arcade building sold to Celtic Bank

$1.44

Utah group inks joint venture with major U.S. meeting planning firm

Executive Lifestyle Executive Lifestyle Legal Matters

Hunt will act as president By Barbara Rattle of McVeigh Performance Group, The Enterprise ThirdRock Travel Group, while Frank McVeigh will serve private equity and management as CEO. Hunt is a 30-year veteran firm co-founded by Utah travel of the so-called MICE (meetings, conferences and industry veteran Randy Hunt, has incentives, exhibitions) industry. formed a joint-venture with Hunt is a former owner New York-based McVeigh of Utah-based Morris Associates, the 10th largest Travel and co-founder meeting planning firm in of Morris Air, which North America, to create was sold to Southwest McVeigh Performance Airlines in the 1990s. It Group, which will have has not yet been decided operations in Long Island whether Hunt will retain and Salt Lake City. Hunt his current position as The newly created vice president of sales firm will focus on incentive and service at Columbus Groups program management and fulfillment, including group + Incentives, Bountiful. In June, Hunt co-founded and individual incentive travel, merchandise awards, stored value ThirdRock Travel Group with cards, recognition programs, Richard Nord, who owns travel tracking and ROI measurement, companies in California in addition strategic planning and state- to some boutique hotel holdings of-the-art event management and an Internet commerce site that technology. see McVEIGH page 2

Legal Matters Legal Matters Matters Legal AlphaGraphics, the seller, will remain in the building; Celtic is expected to take the third floor next year. level, probably sometime next By Barbara Rattle year. Celtic Bank’s current headThe Enterprise The historic Brooks Arcade quarters building at 340 E. 400 Building at 268 S. State St. in S. is under contract to be sold to downtown Salt Lake City has Salt Lake City, which is building a been sold by its anchor tenant, major new public safety complex AlphaGraphics, to Salt Lake City- nearby. Reese Howell, CEO of Celtic based Celtic Bank. AlphaGraphics, which Bank, said the top floor of the acquired the 68,000 square foot Brooks Arcade building, measurstructure in 2000 when it moved ing about 24,000 square feet, will its headquarters to Salt Lake City be substantially larger than the from Tucson, will consolidate its company’s current location on operations on the second floor 400 South, which measures about of the building, allowing Celtic 12,000 square feet. Bank to occupy to the top, third see BROOKS page 5

StaffingMatters Matters Legal

Real Estate Matters Legal Matters

Fulfillment firm Molding Box to move to 50,000 sq. foot facility By Brad Fullmer The Enterprise Molding Box, a nearly sixyear-old company specializing in helping firms with fulfillment, shipping, printing and CD/DVD duplication, among other services, signed a lease recently to move in December from its 10,000 square foot operations in Draper to a 50,000 square foot facility at 2625 S. 600 W. in Salt Lake City. “We’ve had a really good year and needed a bigger space so this will be a great facility for us,” said founder/CEO Jordan Guernsey, whose firm will spend approximately $300,000 in tenant improvement finishes on the building.

Molding Box has made great strides in diversifying its business and expanding its marketing presence in the past year and has seen revenues more than double, Guernsey said, from just under $3 million in 2010 to what he estimates will be between $7 million and $8 million in 2011. He expects revenues to continue climbing next year, with goals in the $12 million to $15 million range. “We’re a lot more diversified and we make it easy for people to work with us,” said Guernsey. “Our clients’ experience is driving everything. People hear that and want the same experience. For us,

HR Matters Legal Matters see MOLDING page 4

National retail chain buybuy BABY will open an approximately 33,000 square foot store in the Salt Lake market in the first quarter of 2012, according to media relations spokesperson Rachael Risinger of parent company Bed, Bath & Beyond. The store will be located in Sandy near the South Towne Center, which fits the demographic characteristics the firm is looking for, said Risinger. The building is located next to an Old Navy store, and formerly housed Linens and Things. buybuy BABY was founded in 1996 and acquired by Bed Bath & Beyond in 2007. The chain operates more than 50 stores in 24 states nationwide; stores range in size from 28,000 to 60,000 square feet. buybuy BABY’s shopping environment offers customers an extensive selection of infant and toddler merchandise in categories including furniture, car seats, strollers, feeding, bedding, bath, health and safety essentials, toys, learning and development products, clothing and a unique selection of seasonal and holiday products. — Brad Fullmer

Oct. 10-16, 2011

The Enterprise

Action sports retailer to open first Utah store Tilly’s, a specialty retailer in the action sports industry that sells clothing, shoes and accessories, will open its first store in Utah in late October or early November at the Station Park development in Farmington. A $350,000 tenant improvement is under way at 180 N. Station Parkway #1100, an approximately 10,000 square foot space. “We’ve set out on a nationwide expansion and I know the Utah market was at the top of our mind,” said Monica Fernandes,

marketing manager for Tilly’s. “We’re opening stores in the right places with the right demographics and wanting to continue to expand.” Fernandes said the company focuses on areas with a young demographic makeup. “We look for areas that are rooted in action sports, fashion, general lifestyle look. Anything for the youthfocused market.” Tilly’s opened its first store in Southern California in 1982 and has grown to more than 120

stores in 11 states. The company is known for staying on the cutting edge of ever-evolving trends and has access to a large assortment of brands and merchandise from top manufacturers in the surf, skate, motocross and lifestyle apparel industries, including clothing/ apparel brands such as Volcom, Hurley, Billabong, Zoo York, Nike and TapouT, along with gear like Beach Feet Boots, Reef Sandals, Skullcandy Headphones and Goldcoast Longboards.

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McVEIGH from page 1

sells hotel rooms. “We sent out about 300 [jointventure announcement] e-mails over the weekend to suppliers like vice presidents of sales for cruise lines, Four Seasons Hotels, big global suppliers of travel, and I’ve probably gotten no less than 150 e-mails back in one day saying ‘fantastic, congratulations, great deal, someone needed to do this,” Hunt said on Oct. 5. “McVeigh has such a great reputation in the large conferences and meetings and Rich [Nord] and I have such a great reputation on the incentive side of things. Everyone looks at it as kind of a marriage made in heaven. For executive officers with cruise lines and major global hotel companies and tour operators, it’s probably a frustrating time for them right now because this industry is so highly fragmented, but at the other end there are some huge, huge companies like American Express and Carlson. In between, their sales force has to spend a ton of time calling on all the fragmented smaller guys just to keep their pipeline full. We’re a major player in their eyes at this point. As far as buying power, as far as deals that they’ll have to offer, we’ll have the very best of those for our clients.” Operations of McVeigh Performance Group will be handled in New York, with sales, marketing and client relations based in Utah. Hunt said the eight-member Utah staff is currently looking for Salt Lake City office space, either in the Cottonwood area, downtown or near the airport. “The fun thing is we’re really not going to have to knock on doors for about two years because between McVeigh and what we’re bringing and what Rich is bringing, we’ve got several big, big companies out there that basically said, ‘when you put this thing together just

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give us a call and you’ve got our business.’ It’s not even going to be a bidding situation. It’s just relationships that we’ve had over the years. We’ve got low-hanging fruit out there that’s going to take us probably 18 months to bring in and it’s not even knocking on a cold door. Plus we’re going to do more M&A. We’re going to actually go out and enroll some of these other incentive companies into McVeigh; I would say within about 18 months. We’re in nondisclosure with about six of the 12 companies right now that are trying to do the same thing, so there’s a lot of interest that way too.” Hunt said McVeigh has 80 full-time employees in Long Island, and that, since its formation, the firm has managed more than 12,000 meetings on six continents. “They book about 120,000 hotel room nights a year; in our industry that’s huge,” he said. According to Hunt, the new joint-venture has two main objectives — bringing younger people into the travel industry and bringing travelers to Utah. “This industry is dominated by the baby boomer generation, I’m part of that,” he said. “A lot of young people perceive this industry as one where there’s not a lot of money to be made. But there are some real aggressive compensation opportunities out there for younger people. Another objective is to bring big conferences and meetings and incentives into Utah. We want to show off our state. We’re going to have a huge influence on driving business to Utah.”

THE ENTERPRISE [USPS 891-300] Published weekly by Enterprise Newspaper Group Inc. 825 N. 300 W., Suite C309, Salt Lake City, UT 84103 Telephone: (801) 533-0556 Fax: (801) 533-0684 Website: www.slenterprise.com. For advertising inquiries, e-mail david@slenterprise.com. To contact the newsroom, e-mail barbara@slenterprise.com. Subscriptions are $55 per year for online only, $65 per year for print only and $75 per year for both the print and online versions. or $1.25 per copy. Opinions expressed by columnists are not necessarily the opinion or policy of The Enterprise Copyright 2011 Enterprise Newspaper Group Inc. All rights reserved Periodicals postage paid at Salt Lake City, UT 84199. POSTMASTER: Send address corrections to P.O. Box 11778, Downtown Station Salt Lake City, UT 84147

Snowbird restaurant getting $1.58 million renovation The Aerie Restaurant at Snowbird Ski and Summer Resort in Little Cottonwood Canyon is undergoing a $1.58 million renovation, slated for completion in early December 2011. The demolition process of the 10,500 square foot restaurant was begun Sept. 19 by Garff Construction of Salt Lake City. Garff estimated the construction cost at approximately $1 million. “It needed a refresh to keep in step with what our guests expect; this is a great opportunity for us,” said Bret Johnson, director of food and beverage at Snowbird. “We have a great hotel with amazing views. It’s not easy in this day and age to make this investment in our property; we’re doing something unique and exciting.” Recognized as Snowbird’s flagship restaurant, The Aerie is located on the 10th floor of The Cliff Lodge. In addition to increased capacity – the restaurant/bar area will be able to accommodate 280 people – a second private dining space for up to 90 people is being planned, one that faces the mountainside and will be used as a breakfast area during the winter ski season, said Johnson. The design of the restaurant, according to Louis Ulrich, principal of Luna Design Studio of Salt Lake City, is “comfortable modern.” “The idea is to keep an

The Enterprise

Oct. 10-16, 2011

ongoing feel of the original Cliff Lodge. It was important to have original continuity and we wanted to bring a certain comfort level for guests. I wanted to breathe a new energy into the restaurant,” Ulrich said. Design elements will include custom glass, wood paneling, custom millwork, new lighting fixtures and the use of fins in the ceiling as a component to warm up the space. A new clear, frosted white bar that sparkles was designed by 3Form and will accentuate the restaurant. The bar will feature a state-of-the-art beer tap system designed by Australian company Lancer Beverage Systems and Japan-based Hoshizaki Ice Machines that Johnson said will be the first of its kind in the U.S. The 12-tap system will feature six locally crafted beers from Utahbased microbreweries. Snowbird also hired a new manager and chef for The Aerie, part of its overall plan to reinvent itself. Johnson said the menu is also being revamped, from a series of various menus down to one, so that guests can enjoy whatever they’d like at virtually any time of the day. “We’re trying to appeal to a wider market of people,” said Johnson. “We want the restaurant to not seem as big as it is, try and give it a more comfortable, cozy feel. Not many restaurants have the type of views we have here.”

Utah County emissions testing to be upgraded Connecticut-based Environmental Systems Products Holdings Inc. (ESP) will begin a $1.5 million upgrade of vehicle emissions testing equipment at approximately 200 testing centers in Utah County beginning in January. The REDeploy program will provide several upgrades to Utah County’s existing vehicle emissions testing program, including real-time data retrieval, increased fraud protection, enhanced parts and labor agreements and cost and time savings for testing center owners and program administrators. ESP’s REDeploy program offers testing centers an upgrade of their existing emissions analyzer at approximately one-third of the purchase price of a new analyzer. Currently, analyzers at vehicle emissions testing centers are only able to upload data to the Utah County Vehicle Inspection Database (VID) overnight, via a dial-up modem. The REDeploy program will replace these modems with a network

card, allowing analyzers to upload real-time data to the VID. By immediately linking the vehicle identification number (VIN) to the make and model of the automobile, REDeploy nearly eliminates the possibility of improperly passing a vehicle by substituting another. All data is housed on two ESP servers in Wisconsin and Connecticut, in the event of a power outage at one location. Beginning in January, the parts and service agreement will be included in the cost of the $1,550 system upgrade. Under ESP’s REDeploy program, vehicle emissions testing center owners will no longer have to choose between an annual service contract and the cost of parts and labor, should their equipment require repairs. “By retrofitting our existing analyzers instead of replacing them, ESP is saving us time and money,” said Seth Vermillion, owner of Utah Safety & Emissions Testing, with locations in Provo and American Fork. “We’ll have the benefit of new technology without the hassle of training tech-

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nicians on new equipment, which could potentially cause delays for customers.” “In speaking with Utah County program administrators and the owners of local vehicle emissions testing centers, we’ve identified several challenges, such as a lag in data retrieval time, the cost of analyzer repairs and the need for increased fraud detection,” said John Bradley, vice president of sales for ESP. “The REDeploy program removes these obstacles, providing a low-cost, low-impact and low-risk transfer of information from testing stations to program administrator.”

PROJECT HIGHLIGHTS TENANT IMPROVEMENTS

Law firm moving headquarters from Alpine to Salt Lake City The law firm of Shumway Van & Hansen is moving its headquarters from Alpine to downtown Salt Lake City. Founded in September 2008, the firm has leased roughly 4,900 square feet in the Judge Building, 8 E. Broadway, where it should be operational by the end of the year, said principal Doug Shumway. Operations in Alpine will be scaled back while an approximately 7,000 square foot Las Vegas operation will remain in place, he said. Five associates will work from the downtown location and more employees will be hired. “I anticipate employing another five people within six months; we have a pretty desperate need to find good talent,” Shumway said. Other partners in the firm are Michael Van and Kevin Hansen. All told, the practice now employs 33 people, Shumway said, noting the company’s practice, while leaning toward real property and transactional law, also includes

“just about everything” — injury cases, litigation, securities, construction matters, family law, bankruptcy and even a small criminal law aspect. The firm leased its Judge Building space with the assistance of Commerce Real Estate Solutions.

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The Enterprise

Martin Plaehn to lead Draper-based Control4 Control4, a Draper-based provider of IP-based home control systems, has appointed Martin Plaehn as its president and CEO. Throughout his 30-year career, Plaehn has held numerous executive management and CEO positions. Before joining Control4, Plaehn was senior vice president of product and service development at RealNetworks. Prior to that, he served as CEO at Bungee Labs, an early leader in the cloud computing and

platform-as-a-service industry. He also served as CEO of Viewpoint Digital, a creator and licensor of premium 3D digital content for digital animators. Effective immediately, Will West will move into the role of chairman of the board and chief strategy officer. Control4 has approximately 2,000 dealers in North America and distribution in more than 70 countries.

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MOLDING from page 1

a lot of [our success] is relationships.” “Our relationship with them is very good,” said Brett Bell, a member with Yknot Holdings, a Salt Lake-based firm that sells hard-good products to various distribution channels and has been a Molding Box client since it started operating its business in February 2010. “They keep us very informed on changes in the industry, changes in shipping rates; they track all our inventory and help with forecasting. They have a very hands-on relationship with us and we can communicate at the top with Jordan.” “It’s been amazing working with them,” added Noah Rasheta, president of iStabilizer, a Kamas-based company that sells primarily portable tripods for smartphones and mobile camera devices through the Internet. “We started out very small, selling just a couple of items a day. What’s nice about Molding Box is there is no minimum or maximum of what we need to sell each day – it’s never been an issue with them. We had one day where we sold 1,500 tripods and they got everything packaged and shipped out in two days. There is no way I could have done that by myself. It’s a great resource for a small company like mine.” Guernsey started Molding Box in November 2005 shortly after turning 21. A native of Pleasant Grove, Guernsey moved to the Salt Lake area at 18 and was working 60 hours a week doing

Jordan Guernsey is the founder/CEO of Molding Box. He started the company in November 2005 at the age of 21.

credit card processing before moving into product development. After a couple of years of working for other people, he decided to test his entrepreneurial spirit and started Molding Box, which he ran that first year out of his mother’s basement, pulling in $300,000 in revenues. “I just got sick of working for other people and figured I could just as easily do something on my own,” said Guernsey. He had developed a friendship dating back to 2003 with Matt Roberts, owner of printing/ graphics company Systematic (founded in 1999), and by 2009 the pair decided to merge the two companies under the same umbrella, which boosted Molding Box’s services and client base considerably. “We were one of the primary vendors for Molding Box and had established a friendship a few years before and just decided to form a strategic partnership and merge our forces together,” said Roberts. “It was a seamless transition.” Guernsey said the company took a major revenue hit at the end of 2009 when the Federal Trade Commission started cracking down on the nutraceutical trade industry, which saw a influx of companies offering “free trial products.” “The FTC basically shut down everyone in that industry, but we’ve diversified out of that market and we’re not in as volatile

a space,” said Guernsey, adding that Molding Box lost roughly 80 percent of its revenue potential in the space of a week at the end of 2009. “It definitely hurt – I won’t lie. But we’ve gotten through it and have turned a new leaf, so that’s exciting.” Part of that overall company transformation has been an emphasis on attending trade shows and exhibits related to the fulfillment industry, along with a major marketing push to get the Molding Box name out there. The company is a significant sponsor for the Real Salt Lake (RSL) soccer team, with various Molding Box signs in RSL’s stadium in Sandy. On Oct. 22, Molding Box will be the featured sponsor when RSL hosts the Portland Timbers. “We were all season ticket holders and members of RSL’s Lion’s Club, which is 100 percent business owners, and decided to try and drum up more local business,” Roberts said of the RSL sponsorship. “We also attend conventions like AdTech and the Electronic Retailers Association, which offer huge networking opportunities.” “We’re trying to gain traction on local and national competitors – we’re taking over the world,” Guernsey said, rather tonguein-cheek. “We’ll start to look at picking up competitors and doing strategic mergers where it makes sense. We’re just trying to get out to different places and broaden our base.” Molding Box currently employs 28 people, and may add up to 10 or 15 more, Guernsey said, once the firm moves to its leased facility in December and based on how business continues to grow in 2012. “Having more space will allow for more growth and more efficiency,” said Roberts. “Being confined to a small space, we’ve had to live on top of each other. It will help us expand our sales force and hopefully offer more services.” Some of the firm’s more notable local clients include Prosper, a personal coaching firm in Provo, the Larry H. Miller Companies, Media One of Utah, and Prudential.

The Enterprise

Oct. 10-16, 2011

Partners to bring 'Dailey Method' Bicycle parts e-tailer to expand in North SL BikeWagon, a Salt Lake City international,” Major said, noting for BikeWagon since its formation. workout concept to Utah firm that sells bicycle parts and sales are made utilizing the firm’s Majors attributed the firm’s success Guests will be offered a variety of membership options, although there is no charge for someone who simply wants to drop in for a single class session ($20) or purchase discounted multiple class packages. Newclient specials include one month of unlimited visits for $100 or a three-class package for $45. The facility will have a main studio with three ballet barres, a secondary overflow studio, a spa-like locker room/shower area, and a retail space for high-end health/wellness products. A stall bar – a series of rungs attached to a wall – will allow clients to hang, helping create space between vertebra and discs. Classroom sizes will average 15 to 20 people per session. The studio will be open seven days a week, with up to six sessions per day during weekdays. The Dailey Method was founded in 2000 in the San Francisco Marina District by Jill Dailey McIntosh. There are currently 27 Dailey Method studios in locations including California, Arizona, Illinois, Canada, and Paris, France. Carpenter Stringham of Salt Lake City is the architect on the tenant improvement project. A contractor was slated to be selected late last week.

BROOKS

right to sell the building. “Our core business is being a franchisor, and in 2000 when the company moved to Salt Lake City there was an opportunity to help develop a blighted corner in Salt Lake as well as have the opportunity to own their headquarters,” Cushing said. “So we were in the development business for a period of time. We’ve accomplished our goal of bringing the building to a mature state, so it was a proper time for us to take our resources out of the building and use them to support our core business. We’ve always had more space than we needed to use so we’re keeping our headquarters here and the same number of folks, we’re just reorganizing it to have a more efficient use of our space and to get our occupancy costs in line with the size of business that we are. “We saw the great opportunity for a candidate to own the building as someone that was much like we

from page 1

“It’s kind of a culmination of a series of transactions that are in everyone’s best interests,” Howell said. “We end up with some additional space in what we believe is a good location and a nice building, and I think it works for AlphaGraphics and I think it works for the city,” Celtic Bank anticipates renaming the structure the Celtic Bank building. “We haven’t made any specific plans but did do due diligence with both the city as far as their sign ordinances go and the Utah Historical Society to make sure we can do some type of signage if and when we move in there, but it’s pretty certain we’d move in at some point,” Howell said. “We’re pretty patient.” Kevin Cushing, CEO of AlphaGraphics, said the time was

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accessories online, is preparing to expand. Currently located in about 15,000 square feet at 2100 N. Redwood Road, the company has purchased a 25,300 square foot building at 680 W. 200 N., North Salt Lake, where it should be up and operating by early November, said George Majors, who owns the company in partnership with his son, Dale. “We’ve grown enough that we need to be in our own building,” Majors said. “It was time to get on our own piece of property.” The larger space will allow the company, founded in 2004, to stock more inventory and enjoy additional office space, he said. The firm, which employs roughly 25 people, currently ships about 400 packages per day via the U.S. Postal Service and FedEx. “We sell all over the world; about 15 percent or so is

own website in addition to eBay and Amazon. The new location will feature a retail shop measuring between 3,000 and 4,000 square feet. This will be the fourth move

to “having a plan as to where we wanted to be in 10 years.” BikeWagon purchased its new location with the assistance of Anne Smart of Commerce Real Estate Solutions.

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The Dailey Method Salt Lake City is slated to open a 2,230 square foot studio at the end of November in the Highland Place Shopping Center at 6910 Highland Dr., one door down from flagship tenant Whole Foods Market in Cottonwood Heights. According to co-owners Daralyn Christensen and Lauren McKay, the pair has been working on this venture for the past year. Christensen learned of The Dailey Method when she lived in the San Francisco Bay area before moving to Salt Lake four years ago. “I had a college friend who opened a Dailey Method studio, and watched her success,” she said. “When Lauren and I worked together at a previous company we discussed opening up a business and thought this was a good opportunity.” “I grew up dancing and was hoping to work in this field,” added McKay. “This is a perfect idea for us to partner and work together. It’s a very modern, upscale environment, which I think people will embrace.” The Dailey Method offers a combination of ballet barre work, core conditioning, stretching and orthopedic exercises in one-hour classes that are aimed to strengthen, tone and lengthen the entire body. Light weights are utilized to define the upper body, while mat and ballet barre work target the thighs, seat and abdominals. “It is designed to provide quick physical results while creating balance in one’s body,” said Christensen. “We hear all the time from people that they have tried many different forms of exercise, and nothing has changed their body like The Dailey Method.”

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were, which was someone that would own the building and also be an occupant of a significant part of it. We’re delighted that Celtic was the group that was able to purchase the building and we, together, will continue to occupy the building for a long time to come.” Constructed in 1890, the Brooks Arcade building was fully renovated in 2001 into a multitenant office building with ground floor retail space. The original exterior facade, consisting of chiseled stone, was fully restored, making it one of Salt Lake City’s most unique and historical buildings. In addition to AlphaGraphics, tenants include Charles Schwab, Konica/Minolta and America First Credit Union. Sale of the building was brokered by Kip Paul and Jeff Rossi of Commerce Real Estate Solutions, and Tab Cornelison of CB Richard Ellis.

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The Enterprise

BANKING

• Scott Nicholls has joined Capital Community Bank as the Orem office manager and mortgage loan officer. He has been working in the financial and banking industry for the last 11 years. Nicholls graduated with a B.S. in business management from Utah Valley University and will be graduating from University of Phoenix with his Masters of Accountancy this month. • Philadelphia-based MultiFunding, a firm that works with small-business owners in more than 27 states to understand small business lending options has rated Salt Lake City’s Celtic Bank as one of the nation’s Most Committed SBA Lenders. The top 25 banks made $2.9 billion of SBA 7A loans in 2010, with their collective deposit base of $5.6 billion. Celtic Bank ranked fifth on the list. • HeritageWest Credit Union collected more than 9,000 pounds of paper waste for recycling at a recent “Shred-It” event in Tooele. Recycling one ton of paper saves 17 mature trees, 7,000 gallons of water, three cubic yards of landfill space, two barrels of oil, and 4,100 kilowatt hours of electricity. • Zions Bank has opened

• Industry Briefs •

a new resource center dedicated to the issues involved with home ownership. Called The Homeowner’s Café, the center is located at 7634 Union Park Ave. in Midvale. Homeowner’s Café will serve as an education center where clients and community members can receive homeownership guidance free of charge. • Ogden-based TAB Bank has hired Mark Myers as vice president of lease underwriting. He has more than 25 years experience in the commercial equipment finance/leasing and commercial banking industries. His previous experience includes working for JP Morgan Chase Bank, Key Equipment Finance, Banc One Leasing Corp. (formerly known as Chase Equipment Finance) and GTE Leasing Corp.

COMPUTERS/ SOFTWARE

• Upturn Solutions, a Layton-based developer of computerized maintenance management systems and asset and work management software solutions, has launched Sprocket 3.5. The newly enhanced software solution significantly reduces the time commitment maintenance managers and technicians need to perform daily work management

tasks by displaying more information on a consolidated dashboard — reducing mouse clicks and data searching time.

CONSTRUCTION

• Bill Ball of Salt Lake City-based Delta Fire Systems Inc. has earned the Leadership in Energy and Environmental Design (LEED) Accredited Professional for Building Design and Construction credential. Ball was hired as a project manager in July 2010. Prior to joining Delta Fire, he served nine years in the U.S. Army as an infantry and Special Forces officer. • The Association of

Independent Architectural Photographers, based in North Salt Lake, celebrated its 10-year anniversary in September. The organization was founded by Utah architectural photographer Alan Blakely on Sept. 10, 2001. Blakely currently serves as the organization’s director. • Dallin Pedersen, project engineer at BHB Consulting Engineers in Salt Lake City, has won the Structural Engineers Association of Utah Fresh Face of Engineering Award 2011. This award spotlights Pedersen as an outstanding contributor to America’s youngest professional engineers. • ARW Engineers, a consulting structural engineering firm located in Ogden, has been ranked by Structural Engineer magazine as the 2011 Best Structural Engineering Firm to Work For in the United States. This annual recognition honors firms that are dedicated to providing their staff with exceptional work environments.

FINANCE

• Integrated Lending Technologies LLC, entered into a strategic partnership with CO-OP Member Center, a wholly-owned subsidiary of CO-OP Financial

Oct. 10-16, 2011

Services, to enhance service to lender and dealer clients. ILT provides a complete Web-based system for managing indirect lending for vehicle and other equipment dealers and lenders known as Dealer Indirect Lending and Leasing System, or DILLS. CO-OP Member Center provides 24/7 loan underwriting services for automobile and real estate lenders. Through this partnership, CO-OP Member Center’s experienced lending professionals will have direct access to the DILLS system to underwrite indirect loans on behalf of ILT’s lender clients and respond to its dealers within minutes.

GOVERNMENT

• The Internal Revenue Service has launched a new program that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers. This new program will allow employers the opportunity to get into compliance by making a minimal payment covering past payroll tax obligations rather than waiting for an IRS audit. The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax

compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as nonemployees or independent contractors, and now want to correctly treat these workers as employees. Full details, including FAQs, are available on the Employment Tax pages of IRS. gov. • The Utah district office of the SBA is accepting Small Business Week nominations through Nov. 10. Awards will go to Small Business Person of the Year, Small Business Exporter of the Year, SBA Young Entrepreneur of the Year, Jeffrey Butland Family-Owned Business of the Year, Entrepreneurial Success Award, Phoenix Awards (for disaster recovery) and Small Business Champions (financial services, home-based, minority, veteran, women). For information regarding eligibility and evaluation criteria please visit www.sba.gov/ ut. All nominations must be postmarked or hand delivered to the Utah District Office no later than November 10 at 125 S. State St., Salt Lake City, UT 84138, attention Georgia Yoshida.

HOSPITALITY

The Enterprise

Oct. 10-16, 2011

• The Homestead and Zermatt resorts in Midway have

entered into a partnership with Gemstone Hotels and Resorts to provide hotel management services to both properties. Gemstone, based in Park City, specializes in managing complex resorts in unique destinations, as well as upscale luxury urban hotels. In addition, the Homestead and Zermatt Resorts will expand their offerings in the areas of arts, education, health, well-being, and recreation. To assist with this transformation, the resorts have partnered with Soul Centers, a premier content provider specializing in the delivery of inspirational, transformational and educational experiences.

HUMAN RESOURCES

• Sixty percent of Americans say they would take up to a 25 percent pay cut if it meant they could work from home. That’s according to data released by Arise Virtual Solutions, which provides at-home customer service job opportunities for approximately 17,000 Americans nationwide. A survey of 350 Americans also found that nearly 80 percent would prefer to work at least part of the time from home. In order to work at home, 34 percent of respondents would take a 5 percent pay cut, 20 percent would take a 10 percent pay cut and just over 7 percent would accept a 25 percent pay cut.

INSURANCE

• EMI Health, formerly Educators Mutual, a Salt Lakebased insurance company, has launched a new online Health Savings Account management tool for its members. The new

Web-based management solution is available from Tango Health Inc., a national provider of health care services. Through Tango Health’s technology, employees can manage and track healthrelated expenses, get reimbursed for health expenses and manage employer contributions and employee deductions. It also simplifies administrative duties for employers and insurance brokers.

LAW

• The law firm of Parr Brown Gee & Loveless has added Chase Manderino to the firm’s business and finance and corporate tax groups. Manderino graduated from the Marriott School of Management at Brigham Young University, with honors, earning both his master and bachelor of science in accounting with a tax emphasis in 2010. He also earned his juris doctor in 2010 from the J. Reuben Clark Law School at BYU, summa cum laude and Order of the Coif. • The Salt Lake City law firm of Jones Waldo has added two new associates and two new staff members. New associate Elizabeth M. Butler is a graduate of the S.J. Quinney College of Law at the University of Utah and holds two bachelor’s degrees from Hamilton College in Clinton, N.Y. Prior to joining Jones Waldo, she completed a clerkship in the Environmental Division of the Utah Attorney General’s Office. Butler’s practice focus is environmental law and litigation. Joseph B. Hinckley joined Jones Waldo as an associate after earning his juris doctor degree from the University of Kansas School

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of Law, where he was symposium editor for the Kansas Law Review, and his bachelor’s from Brigham Young University. Business law and litigation are the focus of Hinckley’s practice. Scott Allen joins Jones Waldo as human resources director. Allen graduated from the University of Utah and has 26 years of HR experience, including as HR director for Zions Bank and Proficio Bank in Salt Lake City. Travis Nicholson has been named services manager for Jones Waldo. Nicholson was formerly with SelectHealth, working in various departments including materials distribution, member services and large group sales. • C. Dan Black and Lena Cetvei have joined Durham Jones & Pinegar as associate attorneys in the firm’s Salt Lake City office. Black joins the firm after spending three years in Latham & Watkins’ San Diego office, where he represented financial institutions, technology companies and energy developers in all aspects of financing transactions, mergers and acquisitions, joint ventures and general corporate matters. He earned his J.D. from Gonzaga University School of Law in 2008, magna cum laude. Cetvei graduated from the S.J. Quinney College of Law at the University of Utah, magna cum laude, in April. She was a William H. Leary Scholar and a senior staff member of the Utah Law Review. She recently passed the Utah Bar and will be

sworn in on Oct. 31. • Jason Castor has been named business development director at Parsons Behle & Latimer. Castor will oversee the firm’s business development efforts, including business generation, advertising, client relations, communication and public relations. Previously, Castor was senior vice president of resource development for United Way of Salt Lake.

MANUFACTURING

• Salt Lake City-based Packsize LLC, an internationally known provider of lean packaging systems, has launched a new website, www.packsize.com, that better reflects the company’s vision, industry standing, green practices, operations and technology. The site was developed to provide users with a better understanding of the impact on-demand packaging is making across several vertical markets, including fulfillment, furniture, manufacturing, printing, windows and doors, and for mission critical packaging applications such as with health care. • MonaVie, a South Jordanbased purveyor of nutrition products, has named Arthur Sando vice president, corporate communications. For the past four years, Sando has been CEO of his Los Angeles–based communications consultancy. Previously, he was senior vice president, communicacontinued on next page

MSHR

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Leading People. Leading Strategy. Leading Organizations.

For additional information contact lisa.leishman@usu.edu or call (435) 797-9159 huntsman.usu.edu/mshr

Oct. 10-16, 2011

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tions, for CBS Enterprises, creating and executing publicity strategy and managing all day-to-day and long-range public and media relations activities for King World Productions, CBS Broadcast International and CBS Consumer Products, whose properties included “The Oprah Winfrey Show,” “Wheel of Fortune,” “Jeopardy!,” “Dr. Phil,” “Inside Edition,” “Everybody Loves Raymond” and the “CSI:” franchise. • Wasatch Brewing, the old-

est active brewery in Utah, is celebrating its 25th anniversary. The firm was established on Oct. 26, 1986 in Park City by Greg Schirf. Today, Wasatch Brewing boasts a broad spectrum of 14 current beers, distribution to 12 states and a vast array of gold, silver and bronze medals from the North American Brewers Association, Great American Beer Festival and the World Beer Cup. Wasatch will honor its birthday with a Beer Bash Oct. 15 from 11 a.m. to 6 p.m. at the City Park in Park City. Admission is free.

• Peter R. Huntsman, CEO of Salt Lake City-based Huntsman Corp., has been honored with the Distinguished Service Award from Brigham Young University’s David M. Kennedy Center for International Studies. Huntsman Corp. is a global manufacturer and marketer of differentiated chemicals for a variety of worldwide industries. With more than 15,000 employees and contractors, the corporation had revenues for the past 12 months of nearly $11 billion. Huntsman also helps direct a number of domestic and interna-

tional humanitarian projects funded by the Huntsman family and Huntsman companies. These projects include a multimillion dollar 20-year project to rebuild housing in the country of Armenia following an earthquake that killed more than 20,000 people; relief projects from the 2004 tsunami floods in India, Thailand and Indonesia; schools in Africa; and scores of initiatives in North America.

MEDIA/MARKETING • Love Communications,

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full-time employees dedicated to digital solutions. Sarah Nielson was formerly a senior Web marketing associate at Salt Lake-based Axis41, where has helped create digital campaigns for local clients Stein Eriksen Lodge and the Utah Jazz and nationally for the Ciena Corp. Devin Deaton formerly worked as digital marketing manager at Salt Lake’s Neutron Interactive and HyperX Media. While at HyperX, Deaton was key to building the HyperX Local Advertising Network, a tool used by many local agencies. • Richter7, a Salt Lake City-based advertising and online marketing agency, hired Craig Aramaki as chief digital officer. Most recently, Aramaki was the chief digital officer at the Salt Lake office of McCann Worldgroup for two years where he set the overall digital vision and strategy for clients such as American Airlines, Mastercard, Microsoft, Verizon, Exxon Mobile, Purina and Verisign. • Saxton | Horne Advertising, a Sandy firm that is part of the Larry H. Miller Group, named David Blain as vice president of client services. Blain is best known as a founder of Blain Olsen White Gurr, Salt Lake City, which was acquired by Rare Method, Calgary, in 2007. Saxton | Horne Advertising, which opened its doors in 1995 under the name LHM Advertising, has experienced unprecedented growth, both in billings and staff, over the past three years. Billings have grown more than 300 percent since 2008, and the agency staff has grown from 23 to 62 full-time employees during the same period. • JDHgroup, an Ogdenbased creative agency, is celebrating its 10th anniversary. Most of JDHgroup’s clients have been with the company for nearly the entire 10 years.

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• Continuing its tradition of providing free Tram and lift rides while helping Utah’s hungry, Snowbird Ski and Summer Resort will extend Customer Appreciation Days to four weekends. Beginning the weekend of Oct. 15-16, guests can receive a free Peruvian Express foot passenger ticket with the donation of a can of food, hygiene item or $3 donation to Wasatch Adaptive Sports. Due to Tram maintenance, guests will receive a Peruvian Express foot passenger ticket the first two weekends (Oct. 15, 16, 22, or 23). Guests will receive an Aerial Tram foot passenger ride the last two weekends (Oct. 29, 30 or Nov. 5, 6), weather permitting. The offer runs through Nov. 6 from 11 a.m. to 5 p.m. Donated goods continued on page 14

Oct. 10-16, 2011

What is networking really?

Here’s a question I often get: the start and meet as many people Where should I network to get the as possible. most leads? • Leave late. Maximize your Wrong question. time – especially if the room is Networking is not about get- full of decision-makers. ting. It’s about meeting, engaging, • Don’t drink. You don’t need establishing rapport, finding com- a beer. You need money. Beer and mon ground and giving. money don’t mix. And networking works IF • Have something of value to you make a strategic say. Play yourself down. plan, target people and Try to find out what they places, allocate the time, do. If they ask what you prepare before you go do, have a BRIEF explaand do it consistently. nation, and a GREAT busiThere are five types ness card. Your 30-second of networking: commercial needs to start 1. Attending and with a question. participating in events. • Talk about positive 2. Being in charge things and people. Jeffrey of an event and bringing OK, so I’ve networked Gitomer people together. and met someone I want 3. Being in charge of a group to get to know better ... or association. • Where is the best place to 4. Speaking at a local or meet? Starbucks or a coffee shop. national event, and being the star Someplace casual. Someplace of the show. inexpensive. Someplace with 5. Volunteering in your com- WiFi. Someplace where you can munity. sit and talk. Here are a few specific • When is the best time to examples of what you can do: meet them? Early – for breakfast. • Attend cultural events or You can avoid traffic and make a sporting events. They give you a powerful connection. chance to see old friends and meet • What do I say and how do new ones. I get to know this person better? • Lead a group at your local My good friend, Bob Littell, is the chamber of commerce. It’s much only person I have ever met who more powerful to lead than go to a totally gets networking. He has business after hours to meet other named his concept of networking salespeople and troll for leads. “netweaving” (www.netweaving. • Speak at a trade show. com). Bob is all about finding Don’t just exhibit and look for leads and opportunities for others. leads. Leaders attend workshops. Bob is all about giving for the By addressing attendees with a sake of giving, not giving with the value message, they will all stop intent to receive. by your booth, compliment you Imagine meeting someone on your speech and WANT to talk for morning coffee, and rather than to you. asking “what he does” (which you • Speak for a Rotary group. could have found out on Google You can be a member of Rotary or his website), you hand him two and basically see the same 50 peo- leads of people in your network ple every week, or you can give a that might be good candidates 20-minute speech at each Rotary for his business. WOW. That’s club (and all civic associations) netweaving. And it works. BUT: in your region. If you speak at a It requires work on the part of the civic organization once a week, referring person. YOU! and offer more information in But Jeffrey, what about my exchange for a business card, it’s 30-second personal commercial? likely you’ll get 50 leads a week What about my elevator speech? – of people who will be happy to How do I make a sale? NOTE take your call. WELL: Do what I have told you • Volunteer for Habitat or above, and people will want to Red Cross, attend charitable buy from you – no pitch needed. events, or even give out water at a local race. You’ll meet likeminded people, and you feel great Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction for helping. is Worthless Customer Loyalty is How do you choose which Priceless, The Little Red Book of events to attend? Three ways: Selling, The Little Red Book of Sales 1. Go where you love to go. Answers, The Little Black Book of 2. Go where your customers Connections, The Little Gold Book go. of YES! Attitude, The Little Green 3. Go where your prospects Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The might be. 4. Be ready when you get Little Teal Book of Trust, The Little Book of Leadership, and Social there, and arrive happy. Here are a few fundamental BOOM! His website, www.gitomer. ground rules to follow that will com, will lead you to more information about training and seminars, or ensure maximum enjoyment and e-mail him personally at salesman@ maximum benefit: gitomer.com. • Arrive early. Get there at © 2011 All Rights Reserved.

The Enterprise

Asset-based lending — a great financing solution for small business It’s well known that this previous two. Financial covenants has been selling and marketing down economy has strapped small are almost never associated with financial products for the last 20 businesses. The monthly optimism factoring so a company can have years. Myers can be reached eric. index from the National Federation a very poor balance sheet and still myers@tabbank.com. TAB Bank provides custom working capital of Independent Business (NFIB) obtain financing. The lender now solutions — accounts receivable illustrates the results of the econo- shifts its repayment focus to the financing, lines of credit, equipmy’s effect by reporting quality of the borrower’s ment loans and asset-based loans a continuing low level of customers and not so much — to transportation and non-transoptimism among small on the company or the portation companies in all stages business owners. The owners. The lender con- of business life cycles during any drop this past August trols the collateral (invoic- economic conditions. to 88.1 was the lowest es or purchase orders) by since July 2010 when the confirming the service has recovery last hit a soft been completed or product patch and was the sixth delivered and then has the consecutive decline — a borrower’s customer pay record string of declines Eric Myers the invoice directly to the in the index. lender. We also continue to These are a few examread reports how credit is tight ples of alternative lending that for small businesses. Couple the have and will continue to play a stagnated economic recovery with vital role in helping small busitightened credit markets and it nesses during this and any other is easy to see how difficult it economic storms that are encouncan be for small-business owners tered. The company’s need and to navigate these turbulent times. situation will determine which However, many small businesses lending program is the best fit. For have found a solution. They have more information regarding these obtained financing through lend- types of lending programs, one ers who provide asset based lend- can contact their local commercial ing and other alternative forms lender, the Commercial Finance of financing. These lending pro- Association http://www.cfa.com,) grams infuse immediate cash flow or the International Factoring into small businesses, enabling Association (www.factoring.org). them to make payroll, pay bills and continue operations. There are many forms of Eric Myers is the director of marasset based lending through many keting at TAB Bank, Ogden. He sources. It is also important to keep in mind that generally speaking lending is fairly simple. It can best be viewed as a continuum with the components of price, liquidity, control and sources of repayment. There are tradeoffs with each of these components based on the type of asset based loan the borrower has with the lender. A traditional line of credit will generally give the borrower the lowest rate, but only a finite amount of liquidity (borrower can only use as much as the line of credit allows). The lender will primarily rely on the company and Salt Lake City Executive Program the owners for repayment and will control through financial stateLeading People. Leading Strategy. Leading Organizations. ments and audits. An asset-based line will typiJoin us for an informational meeting cally be a low rate, but give liquidity based on the value of certain Thursday, October 13 assets such as accounts receivable, inventory and equipment. 5:30-7 p.m. The borrower submits a borrowing base certificate to the lender in Salt Lake at 2500 S. State St. – 5th floor periodically to show the change in also broadcast to Kaysville, Orem, and Tooele value of those assets. Most lenders impose financial covenants based on the company’s performance. This unique graduate business program centers on Not only is the lender relying leadership and engagement of people in organizations. on the company and owners for repayment, but also the value of the collateral. For additional information contact A factoring line is generlisa.leishman@usu.edu ally the highest-priced product but or call (435) 797-9159 gives more flexibility than the huntsman.usu.edu/mshr

MSHR

Master of Science in Human Resources

The Enterprise

NOV

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Oct. 10-16, 2011

• Calendar •

• Oct. 11, 3-5 p.m.: “Using Technology and Automation to Run Faster with Compliance,” a Utah Technology Council compliance clinic. Lane Hirning, a pharmacologist with MasterControl, will present. Hirning has extensive IT experience in the pharmaceutical industry. He started his career as a research scientist at NPS Pharmaceuticals Inc. After seven years, he moved into an IT function, serving over a span of 12 years as IT manager, IT director and senior director of research IT. Since joining MasterControl in 2006, Hirning has specialized in product development for the pharmaceutical industry, with emphasis on regulatory and other requirements for clinical teams. The co-chairs for the forum will be Sherri Robbins, director of regulatory affairs for Nelson Laboratories Inc., and Ken Peterson, director of quality solutions at MasterControl. Location is Nelson Labs, 6280 S. Redwood Road, Salt Lake City. Free for UTC members, nonmembers pay $30. Register at www. utahtech.org. • Oct. 11, 7-9 a.m.: October Breakfast Meeting of Association for Corporate Growth Utah. Guest speaker will be Spencer Eccles, executive director of the Governor’s Office of Economic Development. Location is the Little America Hotel, 500 S. Main St., Salt Lake City. Free for ACG members, nonmembers pay $30. Register at www.acg.org/utah or by calling Linda Blake at (801) 359-8613. • Oct. 12, 6-9 p.m.: Social Commerce Exchange. Participants will learn how to use social media to effectively grow their businesses. There will be interactive learning sessions with leading experts and networking opportunities with like-minded businesses. Location is the Miller Campus of Salt Lake Community College, 9750 S. 300 W., Sandy. Free. Register at http:// socialcommerceexchange-6428.eventbrite.com. • Oct. 12, 8:30 a.m.: Top of Utah Business Expo, presented by the Ogden/ Weber Chamber of Commerce. The western themed, all-day business symposium and expo will deliver concrete tips and strategies in an interactive, entertaining business format for those wanting to build their brand both professionally and personally. Exclusive networking opportunities will give attendees an opportunity to expand their prospects. Marketing and branding gurus, The Hired Guns, will host a one-hour breakfast seminar, “Ridin’ for the Brand” at 8:30 a.m., and free, fast and practical 15-minute seminars through the day from 10 a.m. to 4:30 p.m. For more information, visit http://www.ogdenweberchamber.com. • Oct. 13, 11:30 a.m.: The Building Owners and Managers Association (BOMA Utah) Monthly Luncheon. Representatives from the Utah Transit Authority will discuss UTA’s $2.8 billion dollar project to build 70-miles of rail in seven years. These projects include the recently completed Mid Jordan or Red Line and the West Valley or Green Line as well as yet to complete TRAX lines to Draper, the airport. Additionally FrontRunner commuter rail to Provo. They will also address the Sugar House streetcar, next steps for long-range plans and UTA’s involvement

in development surrounding UTA’s stations. Lunch will be followed by an 11:57 a.m.-departing FrontRunner. Location is the UTA Central Station, 600 W. 250 S., Salt Lake City. Free for BOMA members, $45.00 for nonmembers. Register at www. BOMAUtah.org. • Oct. 14, 9-10 a.m.: “Game Changing Technology,” sponsored by Synergy FDM and the Manufacturing Extension Partnership. Preston Carter, director of NASA’s Game Changing Technology Division, will introduce the public to the Game Changing Development Program. Attendees will learn how NASA utilizes American ingenuity and innovation to overcome complex technological issues, both now and in the future. Location is the UCCU Events Center, 800 W. University Parkway, Orem. Free, but registration is required. Register by e-mailing register@ synergyfdm.com or by calling Kabe Little at (801) 557-6321. • Oct. 21, 8-10 a.m.: Financial Leaders Business Breakfast, sponsored by Robert Half and Protiviti. Senior financial executives will host an interactive discussions about trends and best practices in financial reporting, both globally and in the U.S. Areas of focus will include key initiatives related to the convergence of U.S. GAAP and IFRS, a review of proposed changes to revenue recognition and lease reporting, and evaluation of potential impacts to business processes, systems and personnel. Location is the Garden Room at Thanksgiving Point, 3900 N. Garden Dr., Lehi. Free, but seating is limited. RSVP by Oct. 14 with Channing Galbraith at channing.galbraith@rhi.com or (801) 3645500. • Oct. 26, 11 a.m.-2:30 p.m.: The Building Owners and Managers Association (BOMA Utah) Medical Office Building Symposium. Attendees will explore the dynamic trends that emerge when health care and real estate intersect. Speakers will discuss the key trends and drivers of health care as an industry — from uncertainty about health care reform, to how the state of Utah is working to curb health care costs, to constant pressure on physician’s and health care system’s bottom lines. Location is The Tower at Rice Eccles Stadium, 451 S. 1400 E., Salt Lake City. Cost is $35 for BOMA members and their guests, $60 for nonmembers and visitors. Register at www.BOMAUtah.org. • Oct. 27, 8:30 a.m.-4:30 p.m.: InsideOut Coaching Workshop, presented by InsideOut Development. Attendees will learn how to implement a simple and repeatable coaching process which can be applied in a variety of situations; coach others to recognize their true talents and apply them towards greater performance; assist others to maximize potential by creating awareness, setting goals, and creating focused action; help others develop action plans to increase performance, establish accountability and increase productivity, navigate difficult conversations with more confidence and greater accountability; and communicate feedback in fast and effective ways. Location is the Grand America Hotel, 555 S. Main St., Salt Lake City. Cost is $449. Register at www.insideoutdev.com.

Executive Lifestyle Executive Lifestyle Legal Matters 11

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Oct. 10-16, 2011

Legal Matters Legal Matters Matters Legal Keep in legal: three mistakes to avoid in your advertisements

All-night brainstorming sessions; focus a. Trademarks. Trademarks can be group studies; last-minute decisions to add, any word, name, symbol or device, or then remove, and then add again a period at any combination thereof, used to distinthe end of a word. A lot of time and effort guish and identify the source of goods or go into your company’s advertisements, services. Examples of trademarks include but while you are considering everything brand names, logos, slogans, trade dress down to the kerning of the text, don’t forget and nontraditional marks like sounds, colors to consider the legal regulations and smells. Trademark rights are of your advertisement. This articreated through use of the mark in cle provides an overview of three commerce. The trademark owner common legal problems related to can register the trademark with the advertising that businesses should state or federal government (fedtake care to avoid failing to ideneral registration being the most tify and protect your intellectual common), which confers certain property, infringing someone else’s rights to the trademark owner, David J. intellectual property and using false such as additional remedies for Pacheco or misleading advertisements. infringement. Trademarks should 1. Failing to identify and/ be properly marked to let consumor protect your intellectual property. ers and competitors know that the owner is Intellectual property refers to patents, trade- using the mark to distinguish and identify marks, copyrights and other intangible the source of the products or services. The rights such as trade secrets and publicity ® symbol is reserved for use with federally rights. Intellectual property is at the core of registered trademarks. Unregistered tradeadvertising; businesses use advertisements marks should use TM (or SM for “service to increase goodwill with consumers, bol- mark” for marks used in connection with ster brand recognition and showcase their services). innovative products and services. Before Before launching a new brand or logo, publishing an advertisement, you should make sure no one else can claim prior rights ensure that any intellectual property used or to the mark by conducting a clearance referenced in the advertisement is properly search. Many companies have learned a protected and marked. tough lesson by investing considerable time

and money into a new brand only to abandon the brand and start from scratch after losing a fight with someone who had prior rights to the same or similar mark. b. Patents. A patent protects certain types of innovations by granting the holder the right to exclude others from making, using or selling the innovation described in the patent, thereby giving the holder a legal monopoly on the innovation. Patents are granted for useful innovations that are novel and non-obvious. In some instances, inventors can lose their right to patent an innovation by disclosing it to the public prior to seeking patent protection. Prior to advertising a product or business method that may incorporate a patentable innovation, you should consult with a patent attorney to ensure the patentable material is properly protected. c. Copyrights. A copyright is a bundle of rights granted to the author of a creative work as soon as the work is fixed in a tangible medium. Creative works can include photographs, illustrations, videos, audio recordings, sheet music and software code. Unlike patents, copyrights are granted automatically. Registration of the copyrighted work is advisable, however, because protecting the work from infringement is much easier if the work is registered. Companies

should register at least the key creative works used or referenced in an advertisement. d. Trade secrets. Trade secrets include any information or knowledge not publicly known or readily ascertainable that gives a company a competitive edge in the market. Trade secrets are typically protected with employment agreements, nondisclosure agreements and noncompete agreements. Companies should ensure that any person with access to trade secrets is bound by a written agreement to keep the trade secrets confidential. Companies must carefully balance the desire to market their goods and services by showcasing their innovative processes or knowledge with the need to protect their trade secrets. e. Publicity rights. An individual appearing in an advertisement may have rights to his or her image and likeness. Companies should be sure to have a written agreement with any person featured in an advertisement, especially when it is a celebrity or other public figure, which explicitly grants the company the right to use the person’s image and likeness. Using celebrity impersonators may also violate the celebrity’s rights, as was the case when

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from previous page a video store used a photograph of a Woody Allen look-a-like in an advertisement. 2. Infringing third-party intellectual property. At times your company may benefit from comparing your products or services with those of a competitor. While comparative advertising is a great way to show consumers the superiority of your product or service, it can also create legal problems. The most common claims arising from comparative advertising are claims of trademark and copyright infringement. Trademark infringement occurs when two marks are used in a way that is likely to confuse consumers as to the source of the goods or services on which the marks are used. Trademarks need not be identical to infringe. You should be cautious when using another entity’s trademark and be sure that your advertisement cannot be interpreted in a way that suggests that you are in some way affiliated with the entity or its products and services. If you are not careful, the trademark owner may sue for infringement and potentially win an injunction and/or damages. Using a third party’s copyrighted material in an advertisement is more problematic, as unauthorized use of another’s copyright for commercial use is generally prohibited. It is usually best to get a license to use the work from the copyright owner. Damages for copyright infringement can be substantial — up to $150,000 per work infringed. Before you decide to use another entity’s intellectual property, you should consult with an experienced intellectual

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Advertisers should make sure all intellectual property referenced in an advertisement is protected, that the advertisement does not in some way infringe another person’s intellectual property, and that all claims made in the advertisement are truthful, not deceptive or misleading, and backed up with legitimate evidence. property attorney to be sure you understand the risks involved. 3. False advertising. Federal law requires that advertisements be truthful and avoid misleading consumers. False advertising laws are enforced by the Federal Trade Commission (FTC) and by competitors and consumers. a. FTC enforcement. The FTC is the sole enforcer of the Truth-in-Advertising provisions of the Federal Trade Commission Act, which require that the advertiser have a reasonable basis for all its claims and that the advertisement be truthful, not deceptive, and fair. The FTC pays the closest attention to advertisements that make claims regarding consumers’ safety and health. The FTC can enforce the law by issuing injunctions, imposing fines and requiring corrective advertising. FTC enforcement actions can cost a company millions of dollars, as was the case when the makers of Airborne effervescent tablets settled a case brought by the FTC alleging false and misleading health claims in advertisements. A company should carefully evaluate the messages communicated to consumers and thoroughly document any evidence on which it bases a claim, especially if the claim involves the

health and safety of the consumer. The FTC has provided specific guidance to certain industries and companies utilizing certain types of advertising. For example, the FTC has provided specific guidance for companies making claims regarding the environmental friendliness of their products or services. This guidance, commonly referred to as the “Green Guides,” helps to identify specific practices that the FTC believes are in violation of advertising laws. The FTC also has specific guidance for dietary supplement companies, including guidance on the type and degree of substantiation required for health claims. b. Competitor and consumer enforcement. Consumers and competitors can sue a company for false advertising under Section 43 of the Lanham Act. Under the Act, any person that “misrepresents the nature, characteristics, qualities, or geographic origin of his or her or another person’s goods, services, or commercial activities [in commercial advertising or promotion]” is subject to civil liability. Note that not only is a company required to truthfully advertise its products and services, but it must also avoid misrepresenting another entity’s goods and

services. Class action lawsuits by consumers who feel that an advertisement is false or misleading can cost millions of dollars and substantially harm a company’s brand and reputation. In conclusion, there are a number of legal considerations to take into account when advertising your products or services. While this is not a thorough list of all legal aspects of advertising, it should provide some initial guidance for advertisers. The bottom line is that advertisers should make sure all intellectual property referenced in an advertisement is protected, that the advertisement does not in some way infringe another person’s intellectual property, and that all claims made in the advertisement are truthful, not deceptive or misleading, and backed up with legitimate evidence. Taking these steps with the assistance of experienced legal counsel should help your company avoid the most common legal mistakes in advertising. David Pacheco is an attorney in the Stoel Rives Technology and Intellectual Property practice group helping clients register, maintain and protect trademarks, copyrights and trade secrets. Pacheco has experience protecting clients’ intellectual property through proceedings in federal court, the Trademark Trial and Appeal Board and through other enforcement and protection avenues including arbitration under the Uniform Domain Name Resolution Policy. He can be reached at djpacheco@stoel.com and (801) 5786936. This column is not to be considered legal advice or a legal opinion on specific facts or circumstances. The contents are intended for informational purposes only. If you need legal advice or a legal opinion, please consult with your attorney.

Celebrates

the Arts This Fall

Fri. nights beginning Oct. 14 As part of its commitment to increasing access and participation in the arts, PBS presents the PBS Arts Fall Festival. The festival features artists and performances from nine different communities around the country, and celebrity hosts from each locale.

kued.org

KUED The University of Utah

The Enterprise

Oct. 10-16, 2011

Happy talk

The “dismal science” of eco- • Even as U.S. economic outnomics typically focuses on “bad” put (GDP) has climbed by more news. We clearly face many sig- than 210 percent since 1970, aggrenificant challenges. However, there gate emission of six principal air are also many favorable develop- pollutants has plunged by 60 perments taking place within the U.S. cent. economy. This is my semi-annual • Productivity of U.S. workers update focusing only on the “good” rose an average of 2.5 percent annunews ally during the past 10 years, some • Total U.S. retirement assets of the strongest gains in 40 years. rose to $17.5 trillion in • Women now make 2010, the most since the end up a record 46 percent of 2007. of global MBA candi • The U.S. accounted dates. More than 70 perfor 34 percent of the funds cent of students surveyed spent globally on research name the U.S. as the top and development during MBA study destination. 2010. • U.S. economic growth • The country’s net has now been positive for petroleum imports peaked at 60.3 percent in 2005 and Jeff Thredgold eight consecutive quarters. dropped to 49.3 percent in • Forty-two of the 50 2010. Within a year, North Dakota is expected to supply more states recorded net job gains during oil for domestic use than the 1.1 the most recent 12-month period. million barrels a day that Saudi Every state had previously dealt Arabia now exports to the U.S. with recession at some point during • Roughly 80 percent of com- the past three years. panies that suspended or reduced • U.S. exports to China have their 401(k) matches during the past risen roughly 24 percent per year two or three years reinstated them since 2001, making China the fastin 2010 or 2011. est growing market for U.S. goods. • Conventional 30-year fixed- • A recent poll of more than rate mortgages averaged 4.06 per- 12,000 global business figures cent in recent weeks, the lowest conducted by the World Economic level in 60 years. Forum ranked the U.S. as the • Energy-efficient appliances, world’s most competitive economy. cars, buildings, and other technolo • Total U.S. workplace fataligies that already exist could lower ties declined to their lowest point on U.S. energy usage 30 percent by record last year. 2030. • For every dollar of U.S. eco • Second quarter 2011 GDP nomic output generated today, we was revised up to a 1.3 percent real burn less than half as much oil as 30 (after inflation) annual rate, versus a 1 percent real annual rate in the years ago. • The number of people using prior estimate. Still weak, but bet- public transportation recently hit a ter. • America produces more steel 52-year high. • The U.S. role of dominance today than 30 years ago, despite the shuttered plants and slimmed-down in the global economy during the work force. past decade was as clear-cut as at • Roughly 30 percent of trash any time since the 1950s. was recycled or composted in the latest year, versus 16 percent in 1990. Jeff Thredgold is the only econ • When comparing economic omist in the world to have ever size and population, the average earned the CSP (Certified U.S. worker is 10 to 12 times more Speaking Professional) internationproductive than the average worker al designation, the highest earned in China. Americans won 30 Nobel designation in professional speakprizes in science and economics ing. He is the author of econAmerica, released by major publisher during the past five years. China? Wiley & Sons, and serves as ecoJust one. nomic consultant to Zions Bank.

                                            

                          

                    

 



Practical experience in building rapport

Rapport, like every other important principle of effective salesmanship, must be applied in our sales activities and not just an entry in our intellectual library. Two of my favorite authors on the subject of building rapport and, for that matter, sales principles in general, are Dale Carnegie with his book How To Win Friends and Influence People and Frank Bettger’s book, How I Raised Myself From Failure to Success in Selling. Both of these men based their writings on solid, core principles of human relationships. There are no games, tricks or gimmicks in their approach to dealing with people. What they have taught us about human relationships has transcended time with simple yet profound truths. Dale Carnegie taught six basic principles for encouraging people to like you. Tim At the end of a chapter in his book he summarized these rules: 1. Become genuinely interested in other people. 2. Smile. 3. Remember that a man’s name is to him the sweetest and most important sound in any language. 4. Be a good listener. Encourage others to talk about themselves. 5. Talk in terms of the other man’s interests. 6. Make the other person feel important— and do it sincerely. The key element in effectively using these six rules for building rapport is sincerity. If you are not sincere in your actions you will appear as manipulative, and manipulation in any form will destroy any effort you might make in building trust with a prospect. Years ago while attending an American Iron Ore Association meeting in Pittsburgh, I decided to apply these principles as I met with several of my contemporaries at the reception prior to the annual dinner. I had attended the event with one of my fellow employees and we decided that we would work ourselves around the ballroom, meeting as many people as we could prior to dinner. We would then get back together for dinner and compare notes about the people we had met. I followed implicitly every one of Carnegie’s six rules. The results were absolutely amazing. People actually complemented me on my lively conversation, when in reality, all I did was listen to them talk about themselves. At the conclusion of the social hour my associate and I sat down to dinner and talk about the people whom we had met. His first comment was that he had no idea I had so many friends and acquaintances at the conference. He said that most of the people he met, once he had introduced himself and our company, had mentioned me as someone they knew and admired. For the most part, these were people that I had not known before, but when I met them I showed genuine interest in them, called them by name, encouraged them to talk about themselves and their interests, and with sincerity, tried to make them feel important. The relationship-building principles that I applied that evening in Pittsburgh have become the foundation for the success I have enjoyed for more than 35 years as a salesperson. In an effort to build rapport as quickly and effectively as possible, while maintaining a genuine attitude of sincerity, apply the following rules: • Dress appropriately for your audience, industry and the individual. • Discover at least one area in which to establish some level of commonality. • Focus your whole attention on the other person and what is important to them. People feel comfortable with people who are

like themselves. The first impression we make with another person begins with our appearance. If we are dressed in a similar fashion to the other person, they feel comfortable with us because we appear to be like them, thus establishing the principle of commonality. Early in any communication with others, try to establish a common interest or relationship. This relationship can be anything that you might have in common — a person, a place, a hobby or sport, or one’s background or interests. Remember the cardinal rule of sales, people buy from people they believe, like and trust. One of my clients shared this experience with me the other day. He learned a hard lesson that further exemplifies this rule. My client had been Huffaker made aware of a bidding opportunity for one of his products. He had never met the prospect previous to submitting his bid, but had done his research in preparing a competitive offering. He had tried to follow up with the prospect during the bidding process but was unable to make contact. The day of the bid opening arrived and my client was identified as the low bidder among several of his competitors. He still had no contact with the decision-maker. Finally my client was able to reach the buyer in his attempt to schedule the shipment of his product as the recognized low bidder, only to be told that the buyer had selected one of the other bidders to supply the product, someone they had purchased from previously and at a much higher price. The question my client asked me was, how could he force the issue to receive the order since he was the recognized “low bidder”? The answer was simple, the lesson was difficult and the experience was profound. People buy from people they believe, like and trust. My client had none of the above. The buyer made the purchase from a salesperson he knew and trusted and who represented a company and product he had confidence in using. The conclusion of this story will be determined over the next year by the effort my client exerts in building a relationship with the buyer instead of just offering the lowest price. Building rapport will not guarantee a sale, but it will go along way in preparing the foundation for a sale to materialize. In his book, How I Raised Myself From Failure to Success in Selling, Frank Bettger made the following five-point summary from the section on how to make people want to do business with you: • “If you would win a man to your cause, first convince him that you are his sincere friend ...” – Abraham Lincoln. • Encourage young men. Help a man to see how he can be a success in life. • Try to get a man to tell you what is his greatest ambition in life. Help him raise his sights. • If anyone has inspired you, or helped you in any way, don’t keep it a secret. Tell him about it. • Ask a man “How did you happen to get started in this business?” Then, be a good listener. Apply these principles, adapt the examples to your own experience, be genuine and sincere in your efforts to build rapport with your prospects, and you will realize greater success than you would have ever imagined. Tim Huffaker is the president of The Business Performance Group, a sales training and coaching firm headquartered in Salt Lake City. The company teaches core sales principles and skills, allowing clients to double their sales. Huffaker is the author of hundreds of sales articles and can be contacted at (801) 557-4571 or tim@bpgutah.com.

14 from page 8 will benefit the Utah Food Bank while monetary donations will benefit Wasatch Adaptive Sports. Last year, a record-breaking 6,956 pounds – the equivalent of 5,500 meals – was donated to the Utah Food Bank as the result of the annual Customer Appreciation Days. In addition, $2,215 was raised for Wasatch Adaptive Sports.

RESTAURANTS

• Firehouse Subs opened its first location in Orem on Oct. 3 at 538 E. University Parkway. Firehouse Subs, founded in Jacksonville, Fla. by former firefighting brothers Chris Sorensen and Robin Sorensen, is a 447-unit fast-casual restaurant chain that offers oversized portions of premium hand-sliced meats and cheeses topped with fresh produce atop a toasted sub roll. • Oasis Cafe, Salt Lake City, is offering a three-course nightly dinner menu for $25 through Oct. 31. Changing nightly to take opportunity of the freshest farm harvest, the nightly dinner special includes a choice of soup or salad, a selection of two chef’s choices of entrees and dessert. Reservations are highly suggested.

RETAIL • Diamond Rental, a Salt

Lake City-based independent rental company, now distributes the full line of Terex compact construction equipment in its Tool & Equipment locations, serving customers along Utah’s Wasatch Front and in surrounding states. The Terex compact equipment line is made up of more than 45 unique product models, including skid steer loaders, compact track

Oct. 10-16, 2011

The Enterprise loaders, wheel loaders, compact excavators and loader backhoes.

SERVICES

• Gold Cross has named Chris Nilsen as director of communications for the ambulance company. He will be responsible for overseeing the dispatch center, training employees and will assure company compliance with of all state, local and federal EMS regulations. Nilsen has worked for Gold Cross since 1996 and is a certified paramedic, emergency medical dispatcher, EMT and CPR instructor. He recently served as operations manager for the Eastern Division of Gold Cross in Vernal.

TRANSPORTATION • Beginning in January 2012,

customers of St. George-based SkyWest Airlines will be able to fly by jet from Cedar City onboard the 50-passenger, Bombardiermanufactured Canadair Regional Jet 200. SkyWest Airlines will begin operating the two daily Delta Connection jet roundtrips on Jan. 4, 2012. The current flight schedule and service onboard the Embraer-manufactured EMB 120 Brasilia will continue through the end of 2011. The jet service will begin in January 2012. • Delta Air Lines is currently sponsoring the building of several Habitat for Humanity homes, including a major home renovation in Salt Lake City at 257 N. 800 W. Roughly 15 Delta employees are volunteering their time to work on the home every day over a six-week period. The 2,200 square foot Habitat home will be completed at the end of October. The home is being purchased by a single mother.

How (and why) to co-opt those cops on Wall Street The young (and not-so- protest continues to be a video of young) protesters who came to a high-ranking police officer bruOccupy Wall Street — and have tally “macing” innocent women, stayed despite mass arrests — then it is unlikely to grow far from deserve thanks from the “99 per- its anarcho-bohemian roots. There cent” of Americans they claim to are simply too many Americans represent. who will never side with Without articulating a “hippies” against cops, clear set of demands, they no matter how wrong have nevertheless voiced the cops may be. But the frustration felt by milif the sympathetic statements from labor leaders lions of ordinary people of the past few days turn who have lost homes, jobs, into supportive action — income and security in the and if teachers, bus drivpost-crash economy and see little help coming from Joe Conason ers, firefighters, nurses and, yes, police officers government offices or corshow up to demand porate suites. Soon, however, someone will have to decide change — then this could be the whether Occupy Wall Street even- beginning of something very, very tually concludes in mere sym- big. Don’t scoff too quickly: Last bolic success, which would be little more than glorified failure, winter, hundreds of off-duty law or evolves into a powerful politi- enforcement officers from around cal current that can rival the tea Wisconsin repeatedly joined the statehouse sit-in against Gov. party. If the pivotal moment of this Scott Walker’s attack on labor,

even though their own unions were exempt from his proposed law — and even as their fellow officers were standing guard over the protesters. In those circumstances, the cops were just as capable of understanding the stakes behind the protest as any other workers, or the students who supported them. A policeman who had retired from the Madison Police Department after 20 years on the force explained to USA Today that “we all see this as union busting and wage suppression. This is a long-term, downward spiral of wages for working families.” Such progressive insights probably don’t fit the anarchist stereotype of the cop, whose enmity is cherished as a token of the alienated lifestyle. But not all of those who have flocked to Zuccotti Park and the other protest sites that have sprung up around the country are committed

to political irrelevance as proof of authenticity. Many, perhaps even a majority, might be intrigued by an opportunity to provoke something more significant than a cloud of tear gas or a court summons. The protesters have serious grievances, from mass youth unemployment to burdensome student loans that cannot begin to be paid off if there are no decent jobs. What would happen if they began to articulate the connections between their own problems and the assault on the living standards of public employees and unionized workers? How would the angry middle class respond if the “kids” made common cause with those downwardly mobile working families — demanding debt relief for everyone, a special prosecutor for the financial crooks and higher taxes on those who have profited from the crisis? Why shouldn’t the students (and former students)

stand with teachers against cuts in education and for rebuilding public schools and colleges? Even those who understandably disdain partisan politics, with its endemic money corruption, could swiftly change the direction of the national debate. It is encouraging that many young activists came down to Wall Street from Wisconsin, where they have conducted themselves with impeccable style and effectiveness. Four decades ago, the goons in Richard Nixon’s White House egged on construction workers in downtown Manhattan to beat up antiwar students, who had allowed themselves to be portrayed as enemies of working-class soldiers and cops. Repeating that same mistake now would be tragic for everyone — except the 1 percent. Joe Conason is the editor in chief of NationalMemo.com. Copyright 2001 Creators.com.

Oct. 10-16, 2011

The Enterprise

Superman versus warm body One of the problems in try- been discussed at length, whether ing to select a leader for any large in a few media accounts or in Gov. organization or institution is the Perry’s own more extended distendency to start out looking for cussions in an interview on Sean Superman, passing up many good Hannity’s program, his position people who fail to meet that stan- was far more reasonable than it dard, and eventually endappeared to be in either ing up settling for a warm his opponents’ sound body. bites or even in his own Some Republicans abbreviated accounts seem to be longing for during the limited time another Ronald Reagan. available in the TV Good luck on that one, “debate” format. unless you are prepared On Social Security, to wait for several genGov. Perry was not only Thomas erations. Moreover, even right to call it a “Ponzi Sowell Ronald Reagan himself did scheme,” but was also not always act like Ronald right to point out that this Reagan. did not mean welshing on the gov The current outbreak of “got- ernment’s obligation to continue cha” attacks on Texas Gov. Rick paying retirees what they had been Perry show one of the other pit- promised. falls for those who are trying to Even those of us who still pick a national leader. The three disagree with particular decisions big sound-bite issues used against made by Gov. Perry can see some him during the TV “debates” have of those decisions as simply the involved Social Security, immi- errors of a decent man who realgration and a vaccine against cer- ized that he was faced not with a vical cancer. theory but with a situation. Where these three issues have For example, the ability to

save young people from cervical cancer with a stroke of a pen was a temptation that any decent and humane individual would find hard to resist, even if Gov. Perry himself now admits to second thoughts about how it was done. Many of us can agree with Congresswoman Michele Bachmann’s contention that it should have been done differently. But it reflects no credit on her to have tried to scare people with claims about the dangers of vaccination. Such scares have already cost the lives of children who have died on both sides of the Atlantic from diseases that vaccination would have prevented. The biggest mischaracterization of Gov. Perry’s position has been on immigration. The fact that he has more confidence in putting “boots on the ground” along the border, instead of relying on a fence that can be climbed over or tunneled under where there is no one around, is a logistical judgment, not a question of being against border control.

Texas Rangers have already been put along the border to guard the border where the federal government has failed to guard it. Former Sen. Rick Santorum’s sound-bite attempts to paint Gov. Perry as soft on border control have apparently been politically successful, judging by polls. But his repeated interrupting of Perry’s presentation of his case during the recent debate is the kind of cheap political trick that contributes nothing to public understanding and much to public misunderstanding. Those of us who disagree with Gov. Perry’s decision to allow the children of illegal immigrants to attend the state colleges and universities, under the same terms as Texas citizens, need at least to understand what his options were. These were children who were here only because of their parents’ decisions and who had graduated from a Texas high school. Gov. Perry saw the issue as whether these children should now

be allowed to continue their education, and become self-supporting taxpayers, or whether Texas would be better off with a higher risk of those young people becoming dependents or worse. I still see Gov. Perry’s decision as an error, but the kind of error that a decent and humane individual would be tempted to make. I have far more questions about those who would blow this error up into something that it is not. Error-free leaders don’t exist — and we don’t want to end up settling for a warm body. Ultimately, this is not about Gov. Perry. It is about a process that can destroy any potential leader, even when the country needs a new leader with a character that the “gotcha” attackers demonstrate they do not have. Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University, Stanford, CA 94305. Copyright 2011 Creators.com.

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