Week of February 17 - 24, 2003 ~  v.5, n.7

White Paper Preview: The Gaming Industry
As the rest of the economy continued to endure an ongoing downturn, 2002 saw computer and video game software sales reach $6.9 billion, an 8% increase from the previous year. As more console titles are scheduled to roll out in 2003, the interactive entertainment industry is expected to continue its almost decade-long upswing.

full article >

Effective international intellectual property strategies to mitigate U.S. taxes (Fernandez & Associates, LLP)
Intellectual property rights (IPR) are essential in today's technology driven society. Almost every company has IPR that requires protection from excessive U.S. tax exposure. To reduce U.S. tax exposure, various international strategies regarding development, manufacture, and marketing of intellectual property are discussed. In particular, international strategies pertaining to IPR co-ownership and other sharing arrangements are discussed. Additionally, effective tax-mitigation strategies are discussed regarding specific cross-border IPR and royalty transactions with certain countries.
download the full paper >

~New publications from Larta

Beyond Accession: The Globalization of China and Its Economic Impact on the U.S. and Other Trading Partners
Launched for last week's China Compass Conference, this new white paper from Larta Research examines China's economy, which had already been robust and progressive prior to its 2001 accession into the World Trade Organization (WTO). With data and analysis of the nation's recent economic history, this report examines what ways China's accession will affect the rest of the world, which industries will witness the most transformation, and what challenges and opportunities China's accession creates for the U.S. and U.S. businesses. The paper also addresses specific opportunities and obstacles for businesses and entrepreneurs interested in conducting business in China.
more information >
download the full report >

The 2003 Technology Innovation Index
The 2003 Technology Innovation Index builds upon 2002’s edition. Larta has refined the research methodology, updated and more closely defined the data sets, and more critically analyzed the results, allowing for a deeper examination of the infrastructure critical to technology industries. This year’s Technology Innovation Index will focus on the role of technology in education, and assess its role in promoting achievement and facilitating innovation. Particular attention will be paid to educational systems and to data comparing Southern California’s counties with each other. In addition, the Index will include a brief introduction to issues and research related to the role of technology in education. Examining these issues will highlight the public policy considerations and reforms that will best support the sustained growth of the regional technology sector.
more information >

The 2003 Federal Technology Funding Guide, sponsored by the Ewing Marion Kauffman Foundation
Larta has published its latest edition of the most comprehensive resource on government-facilitated programs for R&D, Winning Government Money, The 2003 Federal Technology Funding Guide. The report is recognized as the nation's leading survey on technology funding by the federal government (over $90 billion per year). With interest in government funding for technology at an all time high, this publication serves a relevant need for companies seeking this kind of assistance. This report is available at a 20% discount to all attendees of the February 20 Larta University workshop, Writing a Winning SBIR Proposal.
more information >


Larta University
February - March 2003

February 18 - May 28: PricewaterhouseCoopers Expert Access Series
In its seventeenth year, the program offers courses covering a variety of practical accounting and finance topics for businesses of all sizes. Choose from a list of classes or choose all for a reduced rate. Courses: Start-Up Accounting and Tax Issues; Accounting Issues for Emerging Technology Companies; Stock-Based Compensation and Equity; and Revenue Recognition.
more information >

February 20: Writing a Winning SBIR Proposal
This workshop will give you a step-by-step approach to writing a winning SBIR proposal. By helping you understand what the program managers are looking for and by critiquing actual proposals, you will leave this workshop one big step closer to attaining federal money. A 20% discount of Larta's
latest edition of the most comprehensive resource on government-facilitated programs for R&D, Winning Government Money, The 2003 Federal Technology Funding Guide, is availble to attendees of this workshop.

more information >

February 26: PwC Expert Access #1: Startup Tax and Legal Issues
Have you recently formed a new business? Along with all the other concerns of starting a new venture, you will need to consider various tax and accounting issues. This seminar will address issues including stock-based compensation and cheap stock, start-up costs, tax loss and credit preservation, maximizing research tax credits, and other matters.
more information >

March 6: How to Avoid Common Pitfalls And Stay in the Black
This seminar will discuss how entrepreneurs can avoid trouble and stay in the black despite the unpredictable economy. You will learn effective solutions for building a successful company and avoiding financial disasters. Learn ways to monitor cash flow and assets, extend runway, and reduce cash burn. Study companies that have failed and learn from their mistakes, as well as successful companies and learn from their successes. Martin Pichinson is a principal and founding partner of Sherwood Partners, Inc. Specializing in the restructuring and dissolution of technology companies, he is relied upon by many of the major lending institutions, law firms and venture capitalist firms to make tough decisions to improve, sustain or create an orderly liquidation of companies.
more information >

March 12 & 13: Attracting Capital
With the ever-worsening state of the VC industry, emerging companies need strong knowledge of what are the most realistic options available for financing in the current marketplace. This workshop addresses all types of possibilities to bring capital to a company seeking to grow, and the pros and cons of each of those, from government funding, to loans, to VC financing, to angel financing. We will also discuss options for NOT attaining and seeking outside financing including partnering with customers, bootstrapping, and leveraging.
more information >

March 18, 26: Accounting Issues for Emerging Technology Companies
Stock Compensation, Revenue Recognition, Equity Transactions, Research and Development are four areas of fundamental importance to emerging technology companies and four areas that have unique and often complex accounting issues. The goal of the course is to highlight key accounting and reporting matters and to give you a working understanding of what impact these areas have on your business and your business decisions.
more information >

~Other Articles
Sponsored By:

Business, Investment, and Entrepreneurship:

Tech execs should eat their cooking (CNN Money)
Insider buying in the tech sector recently hit a 5-1/2 year low--here are some notable exceptions.
full article >

VC Funding Slows to a Trickle (Wired)
Fund raising for new venture capital projects has dropped to its lowest level since 1981. Industry experts see little hope for a rebound as the high-tech economy continues to sputter.
full article >

Security:

War's weight on tech economy tough to calculate (Mercury News)
As the United Nations faces a deadline this week on Iraq, Silicon Valley technology firms are fearful that war could further delay any economic recovery.
full article >


Digital Media:

FCC mulls broadband rule change (Hollywood Reporter)
Futuristic dreams and economic catalyst schemes hinge on the premise that much of the United States needs faster Internet access at a reasonable cost. The nation's big phone companies have grumbled for years that they'd be happy to provide that next-generation broadband--as soon as the government stops requiring them to let rivals lease access to their networks at artificially low prices. Now, with the Federal Communications Commission rethinking reams of rules governing the industry, the phone companies are close to getting what they've asked for--the ability to keep new fiber-optic networks for themselves and sell access to them at market prices, according to people familiar with the process.
full article >

Nanotech and Bioscience:

Scientists Replace Stem Cell Genes (Washington Post)
Scientists working with human embryonic stem cells have for the first time successfully spliced out individual genes from the medically promising but politically contentious cells and substituted different genes in their place.
full article >

Big trouble for tiny technology (VNunet.com)
Nanotechnology backlash feared as ethics think-tank calls for caution.
full article >

Information Technology:

The Web Is Finally Catching Profits (BusinessWeek Online)
Soon, more than 100 Net companies could be in the black.
full article >

Silicon Valley Hopes to Gain More U.S. Contracts (Los Angeles Times)
The head of a new effort to streamline federal government procurement came to Silicon Valley on Tuesday with encouraging news and the promise of an open checkbook. Mark Forman, leader of the newly created office of E-Government, told a room of hopeful high-tech executives that the Bush administration plans to boost spending on information technology hardware, software and services to $58.3 billion in the fiscal year that starts this fall, up 17% from $49.8 billion in fiscal year 2002.
full article >



*********** Events Calendar ***********

This events calendar is provided as a service by Larta about events vetted and endorsed by Larta.

February 18: Orange Coast Venture Group February 2003 Breakfast Program presents, We Are Your Exit: Corporate Strategic Investment
How do major corporations select and value acquisitions? What milestones do emerging companies need to meet in order to achieve a successful M&A exit? At the OCVG February Breakfast Program, you’ll hear insights from leading OC executives who have the unique perspective of having “been there, done that."
more information >

February 22: Caltech/MIT Enterprise Forum: Investments in Science: Funding Research-Based Technology Ventures
While most investors and entrepreneurs are busy managing their losses during the economic downturn, a brave few are launching new funds and enterprises. These contrarians are refocusing their attention to technologies developed at university campuses and research laboratories. Join us as a group of investors and entrepreneurs discuss available funding options and provide insight for entrepreneurial success.
more information >

February 23-27: 2003 Nanotechnology Conference and Trade Show
The 2003 Nanotechnology Conference and Trade Show, NanoTech 2003, is the largest Nanotechnology conference in the world providing collaborative direction to the growing community of nano science, technology and business. The NanoTech conference and trade show is the singular event where these emerging technologies first reach reality. NanoTech 2003 provides a full three-day conference program with keynotes, workshops and breakout sessions. The NanoTech 2003 umbrella event will additionally host the 6th International Conference on Modeling and Simulation of Microsystems (MSM) and the 3rd International Conference on Computational Nanoscience and Technology (ICCN).
more information >

February 25: JETRO 4th Tuesday Technology Exchange: Dynamic Tinnitus Mitigation Treatment
Elevator Pitch Tinnitus, or chronic ringing in the ears, can be emotionally debilitating and effects over ten million people in the U.S. alone, and yet no treatment is considered effective by the vast majority of medical practitioners. As a consequence, a huge untapped worldwide market, estimated to exceed one billion dollars, exists for a practical and effective tinnitus treatment system. The reason this large market has not yet been penetrated is simply that no previous system is supported by convincing clinical evidence needed for acceptance by the medical community. Mike Petroff, an accomplished audio technology inventor and licensor who has severe tinnitus, developed and refined the most highly acclaimed FDA-cleared treatment of tinnitus using applied sound. The sound treatment and system, called Dynamic Tinnitus Mitigation, or DTM, was recently shown to be twice as effective at reducing tinnitus annoyance as any other sound treatment tested.
more information >

February 25: JETRO and USC: Wireless in Japan: Accessing Opportunities in Japan's Wireless Market
This seminar will bring together business leaders from the U.S. & Japan to explore the wireless content environment and business opportunities in Japan. This event will summarize and overview current topics on the Japanese wireless market. This seminar will also provide insight on how to build successful business relationships with Japanese potential partners engaged in the wireless content industry.
more information >

March 11 - 14: The National SBIR/STTR Conference
Small businesses can learn about this SBIR/STTR Grant Program… how to apply for, and what it takes to win, some of the $1.5 billion in U.S. Government R&D investments at the March 11-14, 2003 National SBIR/STTR Conference in Albuquerque, NM. The SBIR program funds high-risk projects at the earliest stages of technology development - before companies can attract venture capital - and works with you through that development and on into the actual commercialization of your product.
more information >

March 12: Lava Investment Capital Conference
The Largest, Most Important Conference of the Year on Sources of Capital for Emerging Growth and Middle Market Companies. Featuring 60 Speakers, including R. Glenn Hubbard, Chairman, President's Council of Economic Advisers. Special $40 discount for VOX readers, use code LARTA23 (case sensitive).
more information >

Larta's full event calendar >

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Larta is the think tank for technology businesses. We apply knowledge in practical ways on behalf of cutting edge companies, investors, governments, and professionals. Larta drives the technology markets through four core services: business training, market research, consulting, and capital programs.

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Sponsorship: To sponsor VOX or other Larta events or publications, contact
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