| Show The Salt Lake Tribune Sunday September 2 1990 t Butlget Now $12 Million -- t Nt 'i ''' 1 v Division Scours the World 'Tor Business for Utahns ‘1 cr I port The state had diversified much with ' new industries and develop- ment Among key and critical legislative authorizations were industrial bonding passage of a freeport law The original industrial bonding measure allowed local entities to ise sue bonds up two $5 million dollars in support of industries that would create new jobs Bonding had been an alien philosophy to the ordinary Utah mind set State bonding as well as industrial bonding by local entities resulted both in major industrial growth and expansion of the educational establishment - Freeport status lobbied quietly and effectively by Mr Halladay provided tax immunity on goods in transit that were stored in Utah either for distribution elsewhere or for assembly in Utah and sale elsewhere Freeport triggered the development of the giant Freeport Center at the former Clearfield Naval Center While some will see this latter event simply as additional evidence that the global economy is really here rather than just emerging otheili will view it primarily as still an- other dilemma for the Federal strvea: Japan this week raised its discount rlite a basic interest rate for the fifth time in just over a year putting 4 at More than double the '25 percent level that existed in May 1989 : An increase of that size could disrupt Investments worldwide and niany of those investments are Japanese And as rates rise in their own epuntry many Japanese might be inclined to call their money back home ' Much of that money is in United States investments attracted there by the safety factor but also of course because of the high returns 11S rates had been generally higher than those in Japan and many other cpuntries What should the Fed do? It could allow US rates to creep higher to compete with the Japanese but to do 60 might be the cause of a US recession Already close to recession the dOmestic economy needs lower not higher Tates In fact a widespread impression existed here that the Fed might ease a bit in order to avoid negative growth Even slightly lower rates it was reasoned might spur enough economic activity to keep the expanRe- sion alive That was before Iraq and Kuwait however The Iraqi invasion of Kuwait bit the US economy right in its industrial gut by forcing up energy costs And higher energy costs can translate quickly into higher prices in general With the United States economy on the very edge of recession the Fed could hardly afford to raise rates Neither could it afford to ignore the threat of renewed inflation coming from the higher prices for imported oil The traditional Federal Reserve technique for dealing with inflation has been higher interest rates but that option seems to be denied it this time Besides how could higher interest rates control prices set by foreigners? The result has been a stalemate the Fed has taken no siihqtantial tion to deal with higher prices nor perhaps can it That situation clearly was enough to deal with but now comes the Japanese threat and similarly it leaves the Fed without options Will Japanese money return home? Or in these insecure times stay where it is most secure? : The latter consideration is a genuihe one although how much foreign money it involves is unknown It is blown that big investors in Europe and Japan are willing to pay a price which the US market 11 Ai: ‘ ''t A - 1 4011Irv' 1- l't 10 0 1 dreamed he would be heading Utah's - and economic industrial - 0 I In May 1989 Mr Parrish as for mer administrative aide to Utah Re publican Sen Orrin Hatch and deputy administrator of the Small 1' k : Business Administration Washington DC was named executive director of the Utah Department of Community and Economic Development The origins of the department go back to 1965 when the first-evUtah division of industrial promotion was established by newly-electe- d governor Calvin Rampton Principal goal says Mr Parrish not just to provide jobs in Utah but g jobs that will raise household incomes Principal emphasis is not so much on attracting businesses as cultivating business now in Utah "to provide most of the new jobs" Mr Parrish who draws a $65000 salary administrates a variety of collected functions employing 50 or more — and a budget of $12 million to $15 million — depending upon federal supplementary funding of !INt - 0 'it t r t" lF I CI - ' 1 j s - --- -- k 4i" -- e--- Ittw-'- I ' l' er j -- I":--- 1 t Ni20 l'I '‘ - '''' 1 A : develop- ment- - 4px 41 - -- : well-payin- - - o l''''!"!- '' '' P4 1t A 1V4ilkewoiw" - 't:irliwviliamt 7 - '''''Ittitk'1s" 1011S '131 ' ' ' - Sir& ' '' 1 - separate story) Recalling how it was in 1965 Mr (See Weilenmann says: "Until then we had believed we could not do anything more than farming and mining After forming the division we went by the seat of our pants at first It was far from scientific but it was successful! The most important result was that attitudes were changed" '' - 1 0 part- job-traini- - youngsters That means there will be considerably new opportunities for older workers and single parents and women in the work force he said That of itself means that training and retraining will become increasing components of an industrial and econom- nerships !k While the focus is inward the reach is outward as Utah Gov Norman Bangerter hit the road last week to look for trade opportunities from Brussels to Budapest and from Tokyo to Seoul The trip will also include a touch down in the Soviet Union where the - —Tribune Staff Photo by Tim Kelly Stan Parrish may propose formation of volunteers of Utah businessmen to aid liberating the Soviet Union's economy ic development Mr Parrish is faThe Utah-bor- n ther of six and grandfather of two He studied business at University of Utah Patent Could Be Worth Millions to Inventor by the patent won by Gilbert Hyatt a Southern California engineer Some believed it covers microprocessors the computers-on-a-chi- p that are the "brains" of computers and calculators Others believed it the covers only microcontrollers less sophisticated but more widely used chips found in household appliances and other electronic devices Intel Corp the computer chip maker that has been credited with inventing the microprocessor and Texas Instruments Inc both have patents that cover the device Experts said it was unclear bow Hyatt's By Bart Ziegler AP Business Writer NEW YORK — A patent granted to an obscure inventor for a basic computer chip design could cost the computer industry hundreds of millions cf dollars in royalties and rewrite the industry's history experts said Thursday But the major computer chip makers could mount a court battle that would block any payment for years or even overturn the patent analysts added Experts were divided as to the scope of computer devices covered patent differs spect for this patent and is not out to to rob the bank" the analyst add- - Daniel L Klesken an analyst at Securities Inc figured out what the patent could cost Intel and Motorola the two largest US chip makers if it applied to their entire line of microprocessors and microcontrollers A royalty of 05 percent the low end of usual rates would cost Intel $10 million and Motorola $6 million a year he said A 2 percent royalty would cost Intel $40 million and Motorola $24 million "I'm also believing that it appears this is a person who's interested in some fame and recognition and re Spokesmen for Intel Texas Instruments and Motorola Inc another major chip maker declined to comment until their attorneys had time to study Hyatt's patent Hyatt 52 of La Palma Calif battled with the US Patent Office for 20 years before he was granted the patent last month News of the patent was disclosed this week Hyatt said his intention in seeking the patent was to set history straight as well as to earn royalties He has not said how much money be is 1st Microprocessor Prudential-Bach- e tell: Under patent law Hyatt can only seek royalties back to the date the patent was issued not when it was filed Experts predicted a legal battle could determine whether Hyatt ever sees any royalties unless he agrees to fees low enough that the chip companies would rather pay him than take him to court "It won't take much to make Hyatt a very rich man which is petty cash for most of these guys" said Millard Phelps an analyst at the San Francisco brokerage Hambrecht & Quist: "They're also used to litigating for years on end if they chose not tc 4 - pay" ' Driven Inventor Fought 20 Years in Pent Row development to that of a compulsive gambler "I gamble on technology" he said "I don't mind the losses as long as the wins are important" He said any money he makes will go straight back to his research He plans to expand his laboratory near his home and perhaps even hire other researchers a departure from his solitary work habits He said he is not bitter at the loss of potential royalties over the past 20 years and will not seek retroactive payments In fact patent law does not permit back payments But he had mixed feelings seeing what he says is his invention be widely used while he realized no financial gain "I'm not angry That's how business works" he said "On one side I'm gratified to see my technology out in the marketplace but I'm frustrated at not being a part of it" The biggest loser he said has been the US computer industry "If I bad more money I could have gotten my new technologies to market a lot faster" he said "Keeping me poor and tight has kept really marvelous technology out of the By Therese Lee Associated Press Writer LOS ANGELES — Gilbert Hyatt didn't so much as crack open a bottle of wine when he learned he had been awarded a patent for what he says was the world's first microprocessor For starters be doesn't drink His only addiction is to work he says Associates describe him leading a monklike existence working 14 hours a day seven days a week on his inventions That doggedness led him to spend 20 years fighting for his patent While its scope is debatable experts say it appears to cover many highly lucrative computer chips technology that powers things like pocket calculators and personal computers kind of "He's not a guy who's going to brag about himself" Hyatt spokesman Charles McHenry said after the patent was disclosed Wednesday stunning the computer industry "Just imagine him with a beanie and a propeller and you'll get the high-profi- picture" Hyatt invented his chip at a company he started in 1968 called Micro Computer Inc which never employed more than 25 people Stuart Lubitz a patent lawyer who represented Micro Computer until it folded in 1971 said the company fell apart because Hyatt resisted sharing his patent rights n The Hyatt has collected a patent for every one of his 52 years recently concentrating on technology In a telephone interview from his home in suburban La Palma Hyatt likened his addiction to research and market" soft-spoke- liquid- -crystal Klesken said Hyatt may not be able to afford years of litigation "He's got to pay lawyers" he said Gary Hecker a Los Angeles patent t i k - compnies 00 lidity at the US Patent Office or if Hyatt seeks royalties in federal I court Hecker who has read the patent said the document "appears at least on its face to cover microprocessot technology in general" But he added the length of Hy att's patent proceeding could limit the scope of his claim "When a patent is on file for 20 years and technology evolves the question becomes are the things that are today's products which may bq covered by the patent things that should be covered by the patent? in other words did the patent really an those linds of things?' he ticigate '"A key thing here will be to see just what in fact this inventor invent- ed and who else at the same time might have been involved in concur :rent and prior invention" he said "If the broad claims would stand muster Mr Hyatt could be a very - 4 t 14 - L) i It - — 0 3 i t - - tn goilo oga -- — ''' 7 4 t' ' '''''' lAtwo 1 1 toll' t 4 ' t - 4 '''' '''' i - ''''C' - - e th ' " - ' - ge- C ' " ' wealthy '' ' 1'k- '''''''''':' - 0 4t111 V t - 1 '''' 1 1 '' 1 ''''' 4414 t ' 11- l' 1':i' ix 1 'otw tall°1 IS Lack of capital has not kept Hyatt idle He said he has been working with a minimum of $10000 a year for his research financed by consulting work for the aerospace industry He makes up for the lack of funds by working long hours he said He can't remember the last time he took a vacation "I can't travel" he said "It detracts from my work" - I' '4444410- t i - - 1 L 441i 1 4nonftwallimmi —Associated Press Laserphoto Gilbert Hyatt displays his microcomputer chip in La Palma Calif after winning a legal battle over its patent 20-ye- ar man" Stuart Lubitz another Los Angeles patent lawyer whose firm represented Hyatt's former company Micro Computer Inc during the 1968- )971 period it was in business downplayed the significance of the patent Lubitz who represents several large computer chip makers said that at the time he was Hyatt's patent attorney he was unaware Hyatt was working on anything that could be considered a prototype of today's microprocessors Lubitz dismissed Hyatt's patent as a "nuisance patent" As for royalties he said "I think if he's willing to grant somebody a license for under $100000 he might get some takers But if he asks for a percentage royalty he'll spend the rest of his life chasing it" 1 Early Forced Retirement Requires Workers to Readjust deal with it" When the ax does fall many early retirees never return to the labor force But there are nearly 2 million workers aged 50 to 64 who are ready and able to go back to work according to a national survey recently conducted by the By Cindy Skrzycki Washington Post Writer Welcome to the "Twilight Zone" the time between when a career ends and real retirement begins Increasingly American workers are finding that early retirement offers start rolling in by the time they turn "fiftysomething" — long before they had considered pursuit inaking golf a full-tim- e So it's never too early to worry about witut you will du next in your career since by age 40 you technically are considered an "older" worker and by 50 you might be history at many big companies In fact the Commonwealth Fund a philanthropic organization in New York that has been studying older Americans at work reports that a third of career jobs now end at age 55 and almost half are over by the age of 60 Moreover the fund says "few older workers are aware of this prospect even fewer are prepared to fund Those who do want to work the survey showed are an employer's dream: They say they don't mind seasonal work They don't mind being on their teet They will commute more than 30 minutes Working alone is all right with them and about half said working evenings and weekends is not a problem One of those workers to waste no time in returning to the work force was Edward J Kane At age 55 Kane left his desk at International Business Machines Corp in New York at 7 pm on a Tuesday night and the next morning was in Atlanta for his new job as a vice president for Dun & Bradstreet Software Services Inc a comput represents ---- I 4 i 1 one-tim- Fed May Hasten Recession by Raising Rates Japan ( lit r Dire-do- governor will propose a fraternal affiliation for the state with an area in the Soviet Union similar to the Beehive State in geography and resources He may also propose the formation of a sort of Free Enterprise Corps whereby volunteers from the Utah business community sill go to eastern Europe and the the Soviet Union to help those countries get started on the road to a free enterprise and market economies Mr Parrish noted that the cultural memory of free enterprise in the Soviet Union nearly has been erased with the passage of time since the Russian Revolution of 1918 An early SBA survey noted that a lively sense of free enterprise in Russia had been brought to the US in the early days by Russian imrialgrants — particularly Russian jews — whose skills as peddlers and shopkeepers led to the foundation of major retail businesses in the United States In Utah and the United States said Mr Parrish job training will become ever-mor- e important because of the diminishing number of new workforce entries That is a function of the aging of America with the proportion of oldsters far exceeding the proportion of Robert H Woody Tribune Business Editor Twenty five years ago none dreamed Utah would be cultivating trade from Europe to the Far East And Stanley B Parrish then a 24- year-ol- d employee of his father's floor covering firm could not have By er'' brella organization which later tax-fre- By John Cunniff AP Business Analyst s NEW YORK — Already affected by the Iraqi invasion of Kuwait the US economy now could come under the influence of events unfolding in of D'évthipment '' 1 evolved into the Division of Business and Economic Development now e businessman headed by and former political aide Stanley B Parrish (See separate story) Mr Smith later succeeded Mr Weilemnann as head of industrial promotion then went into private business and is now retired Mr Swenson is now a bank executive Mr Kimball got into the tourist business and is now an aide to Huntsman Chemical Corp founder and chair man Jon Huntsman Mr Carpenter later headed the Department of Community Services during the Matheson years a time in which Evelyn Lee served as the first woman to head the Utah industrial promotion division Mr Weilenmann left government in 1976 to go into private business and is now a coordinator of joint ventures between American companies and the Peoples Republic of China ‘ k‘ V I ' k ft and also made Utah a major distribution center Two years after be was named in dustrial promotion director Mr Weilenmann was named to bead of the newly-create- d Department of Community Development an um- N 1 ? 4 Continued From F-- 1 Canada and Lahti Finland it had won world attention as as a skiing state with something more to than deserts crickets and people in black Amish clothing A year after the office was formed Mr Smith led a group of six Utah business executives on a trade mission to Europe — a visit which incidentally included Eastern Europe countries Indeed there was some prescience as Mr Smith reported after the trip: "The attitude of these eastern European nations has undergone a tremendous change during the last few years with regard to international We were trade and development warmly received by the various state officials and business leaders not only in Yugoslavia but also Hungary No doubt the business leaders on the trip will return to these countries which for extensive follow-throug- h they are confident will result in substantial business development" And where Mr Smith left off 24 years ago Gov Norman Bangerter is picking up having left this very week for circumnavigation of the globe that will include industrial promotions stops in both Europe and eastern Europe as well as in Japan and Korea By 1975 industrial promotion had been pretty well fine tuned Dale B Carpenter then director of industrial promotion did a retrospective re- : i -- Good jobs for Utahns Goal ' I i 1 -- - c -- - er applications software company "It really hit me between the eyes" said Kane who was corporate director of quality for IBM "I was at IBM for 30 years and I was very happy" Kane's situation is typical of what happens to older workers when they are Many go to smaller more entrepreneurial companies that are hungry for their experience But Kane's case is atypical in that he nevez had tu forsake his professional ambitions and never went without a job Many other "fiftysomethings" find it more difficult to get back into the work world for a number of reasons "They have a tough time coming down in responsibility and income" said Joyce Schuman manager of the Virginia Employment Commission's Job Service "Then couple that with age discrimina- tion" Schuman said her agency loses track of many early retirees be - -- - - cause "we don't have the kinds of positions they are looking for" Another big barrier to is that some older workers insist on finding "clones of their old jobs" said Helen Axel senior research fellow with the Conference Board in New York What those who have taken early retirement need to come to terms with quickly Axel said is that life as they 'knew it is over If the company they had been working for is willing to offer them some kind of a job once they retire it most likely will be temporary or involve contract work that the company can control "Their the companies interest is in severing the career employtrent relationship with an older person and then reconsidering it on a different basis- - Axel said "A lot of these people get back to work in one way or another though they construct a very different work life" But things may be looking up for the older worker said James E Challenger president of Challenger Gray & Christmas Inc an outplacement firm in Chicago "These people are getting jobs as quick or quicker than we have ever seen them do it" he said The median time it takes for a job seeker of any age to land a position is three months Workers age 50 and over are now doing it in 33 months said Challenger It used to take them at ieast four months with the help of outplacement specialists But it takes some attitude adjustment like willingness to go to a smaller company as Kane did Challenger said many small-an- d medium-biz- e companies want people who can produce immediately and — surprise — they welcome people who will stay for the long haul It may sound like something out of the "Twilight Zone" to older workers out of a job but Challenger said it does happen I |
