BRIGHT IDEAS Hospitals Hoping Time Runs

20140915-NEWS--1-NAT-CCI-CL_-- 9/12/2014 3:55 PM Page 1

$2.00/SEPTEMBER 15 - 21, 2014

Hospitals hoping time runs out on SLAM DUNK midnight rule

For some Medicare patients, sitting in a hospital bed overnight doesn’t necessarily mean they’ve been admitted. Consider it the Medicare version of purgatory, and it’s confus- ing patients and taking a chunk out of local hospitals’ bottom lines. Last year, the cash-strapped Medicare program instituted a rule that stated that patients needed two nights — make that two midnights — in the hospital to qualify for inpatient-hospital rates. If they don’t cross that two-midnight threshold, hospitals must bill at the lower, outpatient rates. Basically, it injects a time element into a doctor’s decision of whether to admit a patient, and hospitals are clamoring for a change. “It is so convoluted now and under such fire they’ll have to do something to change it,” said Don Paulson, University Hospitals’ vice presi- CAVS’ dent of revenue cycle management. The rule, according to Moody’s Investors Ser- vice, has the potential to cost hospitals $3,000 to $4,000 per case. ‘ALL OHIO’ That’s big bucks, considering about 40% to 50% of most hospitals’ patients are Medicare beneficiaries. Moreover, Medicare patients are likely on the hook for more of the bill — co-pays APPROACH and drug expenses, for instance — when the hospitals are reimbursed at the outpatient rates. A boon in high-deductible health plans already has forced hospitals to up their game in collect- GAINS CRUCIAL ing unpaid bills, and the two-midnight rule SCOTT POLLACK would only intensify those efforts among See MIDNIGHT, page 24 MOMENTUM

STORY BY KEVIN KLEPS n 30-second television commercials, the likes of Urban I Meyer, Archie Griffin, Thad Matta and Clark Kellogg proclaim themselves Cleveland Cavaliers. For the Cavs, captivating the attention of Columbus, Cincinnati and other markets outside Northeast Ohio has been a process that’s more than a decade old. Only now — with the return of LeBron James, the acquisition of Kevin Love and the focus of much of the NBA on Cleveland — the Cavs are playing from a position of strength. Kerry Bubolz, president of business operations for the Cavs, said the team, as the only NBA franchise in the Buckeye State, has “always felt like we should own Ohio.” DOWNTOWN OFFICE SPACE Following an offseason in which every conceivable AN ILLUSTRATED LIST, P. 22-23 See CAVALIERS, page 26 37

7 ALSO INSIDE: BRIGHT IDEAS

74470 83781 protect their intellectual property ■ Pages 15-21 by Crain Communications Inc. Vol. 35, No. 37 0 PLUS: STARTUP STORIES ■ TOP ADVICE ■ & MORE 20140915-NEWS--2-NAT-CCI-CL_-- 9/12/2014 1:03 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014

700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher: John Campanelli ([email protected]) Editor: Elizabeth McIntyre ([email protected]) Managing editor: Scott Suttell ([email protected]) Sections editor: Amy Ann Stoessel ([email protected]) Assistant editor: Kevin Kleps ([email protected]) Sports Senior reporter: Stan Bullard ([email protected]) Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Rachel McCafferty ([email protected]) Manufacturing and energy Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Art director: Rebecca R. Markovitz ([email protected]) Events manager: Jessica Rasmussen ([email protected]) Special events coordinator: Kim Hill ([email protected]) Marketing strategist : Michelle Sustar ([email protected]) Advertising director: Nicole Mastrangelo ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Solutions for every stage of your business Start Run Expand Transition Lindsie Bowman ([email protected]) John Banks ([email protected]) Office coordinator: Denise Donaldson ([email protected]) Web Editor: Damon Sims Jerry Archambault ([email protected]) Business Banking Digital strategy director: Nancy Hanus From local ([email protected]) 216.623.5975 Audience development director: Eric Cedo ([email protected]) Web/Print production director: entrepreneur to Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Billing: Michele Ulman, 313-446-0353 ([email protected]) national success. Credit: Todd Masura, 313-446-6097 ([email protected]) Customer service/subscriptions Whether you’re starting or expanding your business, 877-824-9373 U.S. Bank can help you manage cash flow, payments Crain Communications Inc. and loans for future growth opportunities. Call your Keith E. Crain: Chairman Rance Crain: President local U.S. Bank Business Banker, and let’s talk. Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations branch Chris Crain: Executive Vice President, Director of Strategic Operations usbank.com/smallbusiness KC Crain: Executive Vice President, Director of Corporate Operations Dave Kamis: Vice president/production & manufacturing Anthony DiPonio: Chief Information Subject to normal credit approval and program guidelines. Some restrictions and fees may apply. Please see your Officer banker for more information. Deposit products offered by U.S. Bank National Association. Member FDIC. ©2014 Thomas Stevens : Chief financial Officer Mary Kramer: Group publisher

G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) 20140915-NEWS--3-NAT-CCI-CL_-- 9/12/2014 1:04 PM Page 1

Go. Get one.

2014 ATS 2.0 TURBO/AWD * CLASSIC CADILLAC MONTHLY LEASE $309 39 Month lease requiring $2,999 Cash orTrade due at signing. 10,000 miles per year and 25¢ charge per mile over. Plus tax, title, license and doc. fee (MSRP: $38,160 - ST#W11244)

Save an extra $1,000 with LUXURY LEASE LOYALTY (NON-GM) - Trade-in not required OR, Save an extra $1,000 with GM LEASE LOYALTY - Trade-in not required. Please call for complete list of qualifying vehicles and details. No Security Deposit Required.

Or get one of these great deals.

CADILLAC CADILLAC CADILLAC AWD 2014 SRX FWD 2014 XTS FWD 2014 CTS 2.0 TURBO MONTHLY LEASE $329 MONTHLY LEASE $419 MONTHLY LEASE $459 39 Month lease requiring $2,999 Cash or Trade due 39 Month lease requiring $3,999 Cash or Trade due 39 Month lease requiring $2,999 Cash orTrade due at signing. 10,000 miles per year and 25¢ charge per at signing. 10,000 miles per year and 25¢ charge per at signing. 10,000 miles per year and 25¢ charge per mile over. Plus tax, title, license and doc. fee (MSRP: mile over. Plus tax, title, license & doc. fee (MSRP: mile over. Plus tax, title, license and doc. fee (MSRP: $38,430 - ST#W11175) No Security dep. required. $46,660 - ST#W11317) No Security dep. required. $48,025 - ST#W11199) No Security dep. required. Save an extra $1,000 with LUXURY LEASE LOYALTY (NON-GM) - Trade-in not required Save an extra $1,000 with LUXURY LEASE LOYALTY (NON-GM) - Trade-in not required Save an extra $1,000 with LUXURY LEASE LOYALTY (NON-GM) - Trade-in not required OR, Save an extra $1,000 with GM LEASE LOYALTY - Trade-in not required. OR, Save an extra $1,000 with GM LEASE LOYALTY - Trade-in not required. OR, Save an extra $1,000 with GM LEASE LOYALTY - Trade-in not required. Please call for complete list of qualifying vehicles and details. Please call for complete list of qualifying vehicles and details. Please call for complete list of qualifying vehicles and details. BMW BMW BMW 2014 320i xDrive 2014 528i xDrive 2014 X3 xDrive28i MONTHLY LEASE $329 MONTHLY LEASE $497 MONTHLY LEASE $554 36 Month lease requiring $3,995 Cash or Trade 36 Month lease requiring $3,995 Cash 36 Month lease requiring $3,995 Cash due at signing. 10,000 miles per year and 20¢ or Trade due at signing. 10,000 miles or Trade due at signing. 10,000 miles charge per mile over. Plus tax, title, license and per year and 20¢ charge per mile over. per year and 20¢ charge per mile over. doc. fee. Additional charge for certain ext. colors. Plus tax, title, license and doc. fee Plus tax, title, license and doc. fee

LEXUS LEXUS LEXUS NAV 2014 RX350 FWD 2014 ES350 2014 GS350 AWD MONTHLY LEASE $294 MONTHLY LEASE $309 MONTHLY LEASE $437 24 Month lease requiring $3,995 Cash or Trade 24 Month lease requiring $3,995 Cash or Trade 24 Month lease requiring $3,995 Cash or Trade due at signing. 7,500 miles per year and 25¢ due at signing. 7,500 miles per year and 25¢ due at signing. 7,500 miles per year and 25¢ charge per mile over. Plus tax, title, license & doc. charge per mile over. Plus tax, title, license & doc. charge per mile over. Plus tax, title, license & doc. fee (MSRP: $45,515) (st#9020717) in-stock only fee (MSRP: $40,558) (st#9021082) in-stock only fee (MSRP: $56,848) (st#9020936) in-stock only

CADILLAC BMW LEXUS CLASSIC MENTOR 440 255 6955 WILLOUGHBY HILLS 888 439 8833 WILLOUGHBY HILLS 800 525 7594 DRIVECLASSIC.COM Offers end 9/30/2014 20140915-NEWS--4-NAT-CCI-CL_-- 9/12/2014 4:20 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014 Will casino play all its cards? LEASED Horseshoe’s numbers have some questioning possibility of riverfront operation 34300 LAKELAND BLVD By JAY MILLER EASTLAKE, OHIO [email protected]

Brandt Evans, the owner of Pura Vida on Public Square, wishes more gamblers would walk across Ontario Street from the Horseshoe Casino Cleveland in the Higbee Building to eat at his popular restaurant, especially since he is a casino “partner” — one of 15 nearby restaurants where frequent gamblers can get Newmark Grubb Knight Frank meals compliments of the casino. is pleased to announce that Visit But, he said, “I am still a big fan of TerryCoyne.com my neighbor ‘the casino,’” Evans 27,886 square feet was leased at Or Call Terry at said in an email. “(T)he casino 34300 Lakeland Blvd. in Eastlake. 216.453.3001 spends a lot of money keeping Pub- lic Square very clean and (they) al- 1350 Euclid Ave., Suite 300 Terry Coyne and Kristy Hull represented Cleveland, Ohio 44115 ways have security walking around the Landlord, Proper Investment, LLC. and that makes my customers wanting to come back downtown to eat.” At the same time, the monthly release of revenue totals by the Ohio Casino Commission is watched like the Dow Jones Industrial Average — and this year, the numbers usually are disappointing. The results show monthly revenue ranging from a low of $16.6 million in January to a high of $21.3 million in March — figures that are below 2013 monthly levels and the heart of the slot machine audience. offers it sends to frequent players to well off the state’s initial projections. “Right now the racinos are doing lure them back downtown. The numbers prompt frequent ques- a really good job and they’ve be- “The Horseshoe in July gave out a tions to casino officials about the like- come suburban entertainment cen- huge amount of free play, more lihood that a planned “permanent” ters,” Silver said. “A lot of them have than $5 million,” Silver said. “In Au- riverfront casino will ever be built. really fantastic amenities.” gust, they backed it off, probably Much of the gaming industry, because they decided the strategy AIR CHARTER SERVICE though, is of a mind that it’s too early to wasn’t working.” AIRCRAFT MANAGEMENT know what the future holds, especially Tricks of the trade Meczka said that since the casino as racinos, the racetrack-based gam- The Hard Rock racino has what it can offer table games the racinos bling halls, are still opening in the state. calls Hard Rock Live, a 2,600-seat can’t, the trick is to attract quality “The industry is still relatively new concert venue that has booked acts table game players with more pro- in the state, something is opening al- such as country singer Clint Black motional (free) play and return as most every other month,” said Alan and comedian Sinbad in the com- large a percentage to the player as Silver, assistant professor of restau- ing weeks. possible to get them to play longer. rant, hotel and tourism at Ohio Uni- ThistleDown is quadrupling the “Let the patron play longer at a versity and a former casino executive. size of its patio, an outdoor pavilion lower rate; the player will be happier “Until everything opens around the where gamblers can smoke and and play longer,” he said. “Time is the state, then we’ll get a good indication. watch the horse racing while they enemy of the player and the ally of the “But even when everything opens gamble. Shannon Mortland, public casino. The longer you keep them at up, then the racinos will lobby for, relations manager for Horseshoe the table, the better off you are.” Cleveland’s Premier Air Charter Service and get, table games and the land- Casino Cleveland and ThistleDown, scape changes again,” he said. said the expansion will add 97 VLTs Serving the area with 8 Jets, In 2009, Ohio voters approved a to the current 32 machines. Holding pattern including a brand new Citation XLS+ constitutional amendment opening The downtown casino can’t match The ever-looming question, • In-flight Wi-Fi Now Available • the state to four casinos. Pressured those amenities, but, said Mike though, is whether or not the casino by racetrack owners, the Ohio Gen- Meczka, a casino marketing consult- can be successful enough to justify www.FlySkyQuest.com • 216-362-9904 eral Assembly in 2011 approved ing in Los Angeles, it can compete. building a new casino building adding slot machines at the tracks. “They have an opportunity to dis- along the riverfront. The Cleveland casino opened May tinguish themselves, but not much The initial plan of casino develop- 14, 2012, the ThistleDown Racino in of one,” he said. “The point of dif- er Dan Gilbert was to build a casino North Randall opened April 9, 2013, ferentiation is that the downtown atop a parking garage overlooking and the Hard Rock Rocksino opened casino is a full-service casino with a the Cuyahoga River behind the Ter- in Summit County December 18, full complement of games. Howev- minal Tower. The complications and 2013. The downtown casino and This- er, that accounts for only 10%, no likely slowness of building on a river- tledown are both owned by Rock Ohio more than 15% of the overall gam- bank moved the casino to what came Caesars LLC, a joint venture between ing revenue and that has higher la- to be called “Phase I” in the Higbee Dan Gilbert’s Rock Gaming LLC and bor costs (than electronic games).” Building. Phase II would come later. Murray & Murray Caesars Entertainment Corp. of Las To combat the downturn, the That was before racinos were le- Vegas. The Hard Rock is a partnership casino is gearing up efforts to entice galized, however, and certainly did- between the Milstein family that owns gamblers. “The biggest project we n’t take into account a planned, full- Lawyers who mean business. Northfield Park race track and Hard have coming up will open in early to service casino in New Castle, Pa., Rock International of Orlando, Fla. mid-October and that’s the TAG near the Ohio border. The Pennsyl- The downtown Horseshoe has Bar,” Mortland said. “That will have vania Gaming Control Board has a suffered revenue downticks with electronic table games, which are license for a casino there, but has Serving businesses and individuals each of the racino openings. Rev- new to this market.” yet to approve a development plan. enue stayed above $20 million a The 2,000-square-foot lounge on While Gilbert has continued to since 1931. month until the ThistleDown racino the second floor will have at least 35 say the new casino, which could of- opened and above $18 million electronic table games including fer the kind of amenities now avail- monthly until the Hard Rock blackjack, roulette and craps. Only able at the racinos, is in the offing, opened. Those facilities only can of- casinos, not racinos, can offer those no timetable is being offered. Last Business & Commercial Dispute Resolution fer what are called video lottery ter- games and video poker. Mortland week, Mortland would only say that minals, or VLTs — basically, slot ma- said the casino also now offers live nothing has changed in those plans. chines, and not any game with even entertainment in its Vintage 51 Bar But Meczka isn’t so sure. a trace of skill, such as video poker. on Thursdays, Fridays and Saturdays. “I don’t think they can generate But they are attractive to many, espe- More subtly, using strategies it enough revenue to justify a new fa- cially to the over-55 demographic that doesn’t disclose publicly, the casino cility,” he said. “It’s an unnecessary likes easy travel and parking, which is tinkers with the amount of free-play investment.”

Volume 35, Number 37 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, ex- Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year (DVW6KRUHOLQH'ULYH6DQGXVN\2+ cept for combined issues on the fourth week of December and fifth week of December at 700 West - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of ad- St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2014 by Crain Communications dress. For subscription information and delivery concerns send correspon- ZZZPXUUD\DQGPXUUD\FRP Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: dence to Audience Development Department, Crain’s Cleveland Business, $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation De- 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to custom- partment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. [email protected], or call 877-824-9373 (in the U.S. and REPRINT INFORMATION: 800-290-5460 Ext. 136 Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. 20140915-NEWS--5-NAT-CCI-CL_-- 9/12/2014 2:41 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 CampusEAI is continuing to fund, guide ed tech startups

By CHUCK SODER [email protected]

CampusEAI Inc. is pumping out education-focused startup companies — and pumping them full of cash. Seven startups that have emerged from the Cleveland-based technology company have received a total of $18 million from its EduTech Venture Fund since 2012. Now CampusEAI wants to invest in your ideas. The company — which provides information technology services to colleges — recently started accepting applications from outside entrepreneurs working to launch “ed tech” startups. It also aims to help colleges commercialize technologies that they’ve developed. And CampusEAI isn’t just providing cash. Star- tups that receive money also get hands-on assistance. For instance, most of the seven startups that already have received funding are based at Cam- pusEAI’s downtown headquarters, according to CEO Anjli Jain. “A lot of these ventures are literally sitting in house,” she said. Among them is QuickLaunch SSO, which just received the last installment of a $2 million investment from the EduTech Venture Fund. A SWEET RESPONSIBILITY The “SSO” stands for single sign-on: The company’s software gives schools and companies a way to log into several software programs at once. Engaged pastry chefs hope to make another future merger — their own restaurant Though QuickLaunch is technically based in Cleveland, only two of its 15 employees are here. By KATHY AMES CARR The rest are in India, which is typical of the star- [email protected] tups coming out of CampusEAI. Combined, the seven companies employ about Vincent Griffith and Anistar Meffert surrendered their 40 people in Northeast Ohio, most of whom work young professional lives to 18- to 20-hour workdays at for a computer systems support company called some of the world’s most elite pastry kitchens. They em- BlackBeltHelp. But they employ another 300 peo- braced the minutiae — such as chopping herbs to perfec- ple outside the region — mostly in India. tion — and appreciated the responsibility of apprenticing That reflects CampusEAI’s deep ties to the beside culinary luminaries. They also adopted skills that country. The company was created by the non- cannot be taught. profit CampusEAI Consortium, which provides IT At the famed Charlie Trotter’s in Chicago, the “push for consulting services to colleges. Most of the non- excellence” imprinted most upon Griffith. profit’s 50 employees are based in India, which is “If there was a standard of quality or a pre-existing ceil- where Jain was born. ing, you needed to have the drive to rise above that status She said the startups develop software and con- quo and do it better, harder, faster, and above all else, duct other business processes in India, where la- cleaner,” Griffith says. bor is less expensive. Meffert’s exposure to the service philosophy in France “It has to be cost effective,” she said. shapes her point of view. The company’s effort to start new businesses “Sure, you learn technique in France, but you also learn began several years ago, while Jain was in a meet- about taking pride in working as hard as you can and the ing with technology executives from several col- importance of treating diners as guests, not customers,” leges that buy IT consulting services from the she says. nonprofit CampusEAI Consortium. One of them It’s that kind of experience that accelerates talent asked if the group could help its member schools enough to warrant leading roles at two of Cleveland’s most monitor their computer systems and provide tech innovative restaurants. support from afar. Meffert, 24, is executive pastry chef at Crop Bistro & Bar’s That discussion drove the nonprofit to create kitchen. CampusEAI Inc., a for-profit company, to provide “I’ve worked with a lot of pastry chefs over the last 30 those services. And it inspired officials who lead years, and Anistar is one of my two best,” says chef/owner the two entities to explore what else they could do Steve Schimoler. “She understands my approach to menu for colleges. development, and brings a great balance of innovation and Those products and services are being spun off creativity, blended with good sensibility, to Crop.” into separate companies, such as BlackBeltHelp, Griffith, 27, is head of the pastry program at Greenhouse the computer support provider. Tavern. “Vincent is the most talented pastry chef Cleveland has Landing on ‘fertile ground’ seen in a long time,” says Jonathon Sawyer, of Greenhouse Tavern and Trentina. But not all of the startups are direct spinoffs of the two CampusEAI entities. Some were created by their employees. And QuickLaunch was Sweet beginnings started by two employees of an existing spinoff The pastry chefs met in 2010 at Charlie Trotter’s and called LookingGlass, which sells software that worked at Chicago’s Michelin-starred, tasting-menu-only See STARTUPS, page 24 Moto restaurant before moving to Cleveland last September. Griffith took the reins of the Greenhouse Tavern’s pastry program after Eater Young Gun pastry chef Matt Danko CORRECTION moved up to executive chef of Trentina in University PHOTOS BY MCKINLEY WILEY Circle. Anistar Meffert and Vincent Griffith, two of Northeast Ohio’s most talented Two Urban Farmer food photos on Page One of The Euclid native’s first stint at the kitchen was as a pastry chefs, will wed on Oct. 4 at a 100-acre Wisconsin dairy farm owned by the Sept. 8 issue were improperly credited. Barney See SWEET, page 12 Meffert’s family. Taxel is the photographer. 20140915-NEWS--6-NAT-CCI-CL_-- 9/12/2014 3:21 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014

Another Receivership Property Cost of materials is a chief concern for manufacturers By RACHEL ABBEY McCAFFERTY acetate and vinyl acrylic-based [email protected] “Nobody wants to raise emulsion polymers because of a prices, but at some point, “global supply shortage of key raw Despite signs of strength in the materials.” manufacturing sector, concerns you have to think about it.” loom about work force develop- – Randy Solganik ment and the rising cost of raw ma- owner and president, City Plating Labor pains terials, health care and energy. Jeff Walters, president of Master Wire-Net, a manufacturing eco- Raw deals Products Co. in Cleveland, said raw nomic development group in materials prices have been creeping Cleveland, released a survey earlier A study released by the National up, but he hasn’t had to take those this month in which 50% of 89 re- Association of Manufacturers and cost increases to the customer — IndustryWeek Sept. 8 cited rising SOLD spondents predicted improved yet. While materials are the compa- health care and insurance costs as Thomasville Plaza profitability in the next year. Anoth- ny’s largest cost, the one that con- major business challenges. 27326 - 27346 Lorain Road, North Olmsted er 31% expected profits to remain cerns Walters the most is health About 41% expressed concerns the same. care. about energy or raw material Gregory B. West seventy-fifth 75 anniversary All respondents had fewer than If Master Products, which pro- costs. 250 employees. About 12% were in duces flat washers and metal David R. Horowitz To combat increased spending, the automotive space, and another stampings, is dealing with cost in- 216.861.7200 | www.ostendorf-morris.com local companies have been improv- global commercial real estate services 35% were in miscellaneous manu- creases of a product like steel, it can ing efficiencies and raising prices, facturing, including metal stampers be justified to customers. But those Colm said. and fabricators. customers don’t want to hear about The Cleveland area has the type But the survey also highlighted health care increases, he said. of manufacturing sensitive to shifts some constraints to growth, and That’s for the company to handle. in raw materials prices, said Randy the consensus on those factors was Business is booming at metal Solganik, owner and president of pretty strong. stamper Talan Products Inc., but City Plating in Cleveland. But com- Material costs were the most ing out of the financial crisis, man- one of the issues that concerns CEO commonly cited constraint at close ufacturers have primarily been able and founder Steve Peplin is labor. to 63%. to absorb rising materials costs He said in the past year or two, the About half (47%) pointed to elec- through lean techniques and other Cleveland company has been doing tricity costs and the cost of the Af- efficiencies. City Plating has turned more training than it used to, hiring fordable Care Act (55%). And chal- to methods like automation to someone who is technically mind- lenges related to talent remained avoid price increases. ed and helping him or her gain the near the top of the list with about “People have been loath to raise necessary skills, rather than expect- 62% of respondents citing it as a prices,” Solganik said. ing the skills on day one. concern. But he thinks that will soon have Labor isn’t just a concern in John Colm, president and execu- to change. In the past year, two of terms of finding people with the JOIN US AS WE CELEBRATE tive director of Wire-Net, said it was the materials City Plating uses have skills to fit the job openings. OUR 40TH ANNIVERSARY AND significant to see raw materials seen steep increases in prices: Stripmatic, which has fewer than costs at the top of the list of con- about 40% for nickel and about 20% 50 employees, has raised wages in OUR CAMPUS EXPANSION. cerns. Though Wire-Net hasn’t re- for zinc, Solganik said. And he’s recent years, and Adler said he’s cently conducted this survey, it watching for increases in the cost of seen increased pressure on wages used to do so at least twice per year. in recent years. ³ Dedication of the NEOMED electricity. From about 2008 until 2011, sales Bill Adler, president of metal Solganik said starting wages at Education and Wellness (NEW) Center were the top concern for manufac- stamper Stripmatic Products Inc. in his shop still were the same, but Sept. 29, 10:30 a.m. turers, he said. Talent-related issues Cuyahoga Heights, said materials current employees did receive a pay started to gain prominence after make up about half of the cost for increase this year. The company ³ Community Open House that. the company to produce a part, needs to stay competitive, he said. And rising costs aren’t just a wor- Though City Plating doesn’t share for the NEW Center and, in the past year, he’s seen ry in Cleveland. more competition from low-cost overall sales, Solganik said sales Oct. 4, 10 a.m. to 2 p.m. The Federal Reserve Beige Book imports. were up 7% year to date. And he ex- released Sept. 3 boasted relatively A recent trade case puts tariffs on pects to see steady growth into the For more information visit www.neomed.edu/40. widespread growth in manufactur- certain tubes and pipes, but the next year. ing, including in the Cleveland re- same products that have been min- gion, which covers Ohio, western imally processed aren’t included, Something’s got to give Pennsylvania, eastern Kentucky he said. The tariffs protect the pri- and part of West Virginia. mary suppliers, but not the sec- Solganik said he thinks many of The report noted that the de- ondary processors, he said. the materials cost increases are re- mand was strongest in the food, “That is so much harder for us to lated to geopolitical or regulatory motor vehicle and oil and gas in- compete against,” Adler said. issues, like nickel from conflict-rid- dustries. Adler said he expects 2014 sales den Russia or the coal-related man- But it also said a “growing num- to be close to those in 2013. He has dates facing the electricity industry, ber of manufacturers reported ris- higher expectations for the future rather than just demand. ing prices for raw materials, espe- as the company moves into new ap- The market is still competitive, cially metals and agricultural plications and markets. but he thinks the rising costs are The products.” And while prices for It’s not just companies working something manufacturers will have higher materials were passed with metal that are feeling the to confront at the end of 2014 and through to customers with “little squeeze. into 2015. pushback,” some manufacturers Earlier this summer, Omnova “Nobody wants to raise prices, said the increases were starting to Solutions Inc. in Fairlawn an- but at some point, you have to think GO TO affect profitability. about it,” Solganik said. nounced price increases on vinyl advisors for Intellectual Property CRAIN’S BLOGS

GET THE LATEST FROM OUR EDITORS AND REPORTERS, INCLUDING:

EDITOR’S CHOICE: Managing editor Scott Suttell HEALTH CARE: Reporter Timothy Magaw breaks rounds up news and views about business, and down the latest news about the region’s hospitals. McDonald Hopkins LLC 4VQFSJPS"WF &BTU 4VJUF $MFWFMBOE 0)t stories of interest in Northeast Ohio. Weekdays Tuesdays

Shawn M. Riley, Cleveland Managing Member SPORTS BIZ: Assistant editor Kevin Kleps writes WHAT’S COOKING: Twice per month, freelance David B. Cupar, Co-Chair, Intellectual Property Practice about the Browns, Cavaliers, Indians and much more. reporter Kathy Ames Carr has morsels on the local Weekdays restaurant scene. David T. Movius, Co-Chair, Intellectual Property Practice $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDI CRAINSCLEVELAND.COM/SECTION/BLOGS mcdonaldhopkins.com Carl J. Grassi, President 20140915-NEWS--7-NAT-CCI-CL_-- 9/12/2014 3:21 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Delayed Kimpton Hotel set to open downtown in 2015

By JAY MILLER spurred several downtown hotel Leisure Advisors, a Lakewood-based wood Hotels & Resorts, which is Cleveland Convention Center was [email protected] projects. The remaking of downtown consulting firm. “For some, it’s be- expected to open in January 2016 at shut out of a round of state historic is one key reason why one hotel con- come a city of choice.” 1001-1101 Euclid Ave. tax credits. The developer of the Schofield sultant believes Cleveland should be Among the hotel projects that Herb Wedemeier, general counsel Building in the heart of downtown “a city of choice” as a place to live Keller highlighted in her Aug. 28 post Caution still rules for the St. Louis-based hotel company, Cleveland has set a mid-2015 opening and to visit. on HotelNewsNow.com were the told Crain’s last Thursday, Sept. 11, for the Kimpton Hotel and apart- “Continued development projects, recently opened, 484-room Westin But the struggles of the Kimpton that the firm will be seeking a state ments under construction in the his- anticipation of the coming RNC and Cleveland on St. Clair Avenue; the developer and similar setbacks for tax credit in a round that has a Sept. toric building. hype surrounding the return of 150-room Aloft in the Flats; and the the Drury Plaza on the Mall reveal 30 deadline. While that’s not the firmest of LeBron James to the Cleveland Cav- 156-room Metropolitan at The 9, a the caution that still exists among “The state historic credit is an opening announcements, it’s a pos- aliers will cast a bright light on the Marriott Autograph Collection hotel hotel lenders. essential part of this project,” he itive sign for a project that has had a city and the entire metropolitan that opened earlier this month The Kimpton financing appears to said. “We feel confident we will get rocky history. It has been a victim of area, providing a great opportunity across East Ninth Street from the be in the home stretch, but the Drury the award this time.” a difficult hotel lending environment for all to see it’s not a city that devel- Kimpton at the former Ameritrust project is still some distance from Wedemeier said the company is that remains cautious after the opers, national conventions, sports Tower. the finish line. targeting a late-2015 or early-2016 market collapse and decline in hotel superstars and world-renowned She also mentioned the under- Some work has begun on the pro- opening, though he conceded, “The occupancy that followed the Great doctors merely settle for,” wrote construction, 600-room Hilton ject, which originally had a fall 2015 big deadline, of course, is that you’ve Recession. Laurel Keller, director of appraisal Cleveland Downtown and the Le opening date. But in June the 180- got a big convention coming to Brian Intihar, vice president of and consulting services for Hotel & Méridien Cleveland, from the Star- room boutique hotel near the new town.” developer CRM Properties Inc., committed to the opening as CRM is firming up the final bits of financing for the $45 million project, which has been under development since before 2009. Despite financing difficulties, the Kimpton is part of a boom in Cleve- land hotel development that has TOP FIVE SIGNS YOUR EMPLOYEES MIGHT HAVE INFERIOR DENTAL COVERAGE: blossomed of late, as the new Cleve- land Convention Center was opening and even before the blockbuster announcement that the city would host the Republican presidential nominating convention in summer 2016. THEIR NETWORK INCLUDES ONLY TWO DENTISTS. Early next month, the Kimpton developer expects approval of a backup collateral agreement with Cuyahoga County. That will provide key lender Wells Fargo the comfort it needs to move ahead with its $29 CLEANINGS CAN ONLY BE SCHEDULED million in first and second mortgage loans. ON THE LAST TUESDAY OF THE MONTH. Last Wednesday, Sept. 10, the Cuyahoga County Community Im- provement Corp., a quasi-public body of bankers, business executives and county staff that reviews the county’s economic development ONLY THE TOP FRONT TEETH ARE COVERED. lending, unanimously recommended to county council that the county pledge $5 million as backup collateral on the second mortgage loan. The building recently was appraised at $33.5 million, Intihar told the CAVITIES ARE NOT TREATED BECAUSE THEY Community Improvement Corp. ARE CONSIDERED “CHARACTER BUILDING.” “It’s the final piece to completing the capital stack,” Intihar told Crain’s about the county’s collateral pledge. “It’s an additional guarantee that Wells can look to.” Market heats up CRM and its principals, including Intihar and president Steve Cal- abrese, have an $11.4 million equity investment in the project. Work began after the developer in 2009 received a $1.25 million loan from the city of Cleveland. That loan enabled CRM to look under the THEY DON’T HAVE DELTA DENTAL. aluminum panels added in the late 1960s to assess the state of the original brick and terra cotta exterior, dating from 1902. The underlying materials needed considerable restoration, but the Give your employees access to two large networks of developer moved ahead with the work as it lined up a financing package. In 2010, the state of Ohio granted contracted dentists and award-winning customer service. the project $5 million state historic preservation tax credits. Learn more at deltadentaloh.com/dentaldonebetter. The final financing fell into place when CRM reworked the project to include more apartments and fewer hotel rooms, which in a hot apartment rental market like downtown Cleveland improves the cash flow outlook for a lender. The resurgence of investment in downtown, led by the new convention center and the adjacent Global Center for Health Innovation, has 20140915-NEWS--8-NAT-CCI-CL_-- 9/12/2014 3:22 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014 Paragon regains wings, soars higher

By CHUCK SODER can fit more employees into the same [email protected] BOOMING BUSINESS amount of space. Plus, the company has the option to take another 2,500 Paragon Consulting got hit hard square feet on the same floor. A few executives from Paragon by the recession. Paragon recov- Consulting recently took an aerobat- ered much of its lost business in ic plane ride — the kind where the 2010, after it started focusing on Webbed feet pilot does nosedives and then building websites using a popular Cedric Ervin, manager of the swoops back up into the sky. platform called Sitecore. That Great Lakes region for Sitecore, said They know the feeling well. strategy has paid off handsomely. Paragon is “our premier partner in Sales at the web development firm the state of Ohio.” dropped by 40% during the reces- Estimated sales And that says something: sion, but now the Mayfield Heights 2010 $2 million Sitecore’s 3,500 clients include company is flying high — much 2011 $5 million some huge organizations, such as higher that it had ever flown before. 2012 $6 million the Cleveland Clinic (a Paragon cus- Today, Paragon is several times 2013 $7 million tomer), Procter & Gamble and L’O- larger than it was before the reces- 2014 *$10 million real. Plus, Sitecore’s sales have been sion, partly because of a wise move *Projected; Source: Paragon growing by about 50% each year, the company made in 2008. Ervin said, though he wouldn’t pro- That year, Paragon became a part- it’s now one of the most prominent vide more detail. ner with a company called Sitecore. Sitecore developers in the Midwest. The web technology company of- And when the recession decimated The company’s revenue sur- ten refers new Sitecore partners to Paragon’s custom software develop- passed $7 million last year and Paragon for training and development business, the company shifted should exceed $10 million this year ment assistance, given that Paragon its strategy: Now it focuses most of — up from $2 million in 2010, ac- has more than 30 Sitecore-certified its efforts on building websites using cording to CEO Mark Atwood. developers. Sitecore’s technology. It was like Paragon now has more than 60 Doing work for other web devel- Paragon replaced its propellers with employees and 20 full-time con- opment firms opened up a new Sitecore-brand jet engines. tractors, up from 18 employees in source of revenue for Paragon. The LAST CHANCE TO PURCHASE The Danish company’s web con- late 2010, he said. company even marketed the service tent management software, which is Granted, the company did win through an “Outsource to Cleve- Thursday, Sept. 18 | 7am - 1pm designed to help companies automat- one big contract from Charles land” campaign, according to Frank Cleveland Convention Center ically reconfigure content on the site, Schwab in 2010, which helped McGee, business development based on who is visiting, has become jumpstart its expansion, Atwood principal at Paragon. Premier particularly popular lately. That put said. But Paragon’s Sitecore part- “We’re kind of like the duck feet un- sponsor CrainsCleveland.com/HCForum Paragon in a good position, given that nership is still driving growth. der the water,” McGee said. He then For instance, two weeks ago pointed to appropriate example: Paragon extended offers to three Paragon helped another web firm more prospective employees, At- build the website for Aflac, an insur- wood said. And the company would ance company represented by a duck. Annual hire five or six more people, if it That kind of work has helped ਟ found good ones, he said. Paragon expand well beyond “I know I have more work than I Northeast Ohio. For instance, Ervin 24 have people,” he added. said he has introduced Paragon to To house its growing staff, Paragon two new Sitecore developers since plans to move into a new office at last November. One is in Cincinnati 5900 Landerbrook Drive in Decem- and the other is in Indianapolis. The distinguished awards ber. The 10,000-square-foot office is- company also works with firms be- n’t much bigger than its existing yond Ervin’s territory. headquarters across the street, but it “It’s not just in the Midwest. It’s lit- Congratulations to Cleveland State University’s has been configured so that Paragon erally around the country,” he said. 2014 DistinguishedA Alumnilumn Award Recipientsi

ANTHONY S. BAKALE ELIZABETH PUGH BBA ’82 JD ’78 Cohen & Company U.S. Library of Congress ANDREW JACKSON BBA ’82 RICHARD JANUS AJ Automotive Group MA ’77 and Elsons International Victory Capital Management

MURRAY WINLAND CYNTHIA STRUK MEd ’93 BSN ’83 WE HELP BUSINESS AT eBay, Inc. Summa Health System KENNETH P. JAYJACK THE HIGHEST LEVEL. BSIE ’82 PAUL J. GEMPERLINE American Greetings BS ’78 and Ph.D. ’82 When a company has a problem that gets kicked upstairs, Corporation East Carolina University upstairs kicks it to us. SAM McNULTY BA ’97 Market Garden Brewery, Bier Markt, Bar Cento, Speakeasy, Nano Brew

Join us in honoring these outstanding graduates THURSDAY, SEPTEMBER 18, 2014 5:30 p.m. Reception 6:30 p.m. Dinner & Awards BERT L. & IRIS S. WOLSTEIN CENTER 2000 PROSPECT AVENUE

TICKETS: $125 per person • Business Attire Higher standards make better lawyers.® www.csuohio.edu/alumni/daa/ • 216.687.5045 • [email protected] For more information, visit vorys.com.

CLEVELAND STATE UNIVERSITY Vorys, Sater, Seymour and Pease LLP ALUMNI ASSOCIATION 1375 East Ninth Street 2100 One Cleveland Center Cleveland, Ohio 44114 106 South Main Street Suite 1100 Akron, Ohio 44308 20140915-NEWS--9-NAT-CCI-CL_-- 9/11/2014 3:18 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Sivon enters next generation, adds products

By MIKE SCOTT Key growth markets distributors and an infrastructure Shawn Ritts said additional look at.” Rubber & Plastics News and partners that allow us to sell training will be needed for him and Sivon Manufacturing will make “One of the growth areas for us is everywhere. In fact we just shipped Kathleen, adding that the transition other operational investments over the oil and gas industry,” Charlotte some product this morning to the to the new management team will the next two years, Ritts said. That Sivon Manufacturing Co. of Per- Kieffer said. “That is an industry ry, a manufacturer of a full range of United Kingdom.” be very transparent. will include a newly redone website where a lot of rubber is used and equipment for the rubber industry, Sivon Manufacturing has sup- “All of our customers know at www.sivonmfg.com, along with where there is more demand for is turning to its third generation for plied the rubber industry with the about this plan, but nothing will re- other technological upgrades. products. It is an area where more leadership. SMACO bench model vulcanizers in ally change for them,” he said. “The Ron Kieffer has been responsible of our business will come from in Charles Sivon started the Lake multiple sizes, from portable to large same level of service and products for much of the technical knowl- the future.” County company in the late-1930s, injection or transfer presses. The will be available to them. But we edge at Sivon Manufacturing for a The aerospace industry is anoth- before his daughter, Charlotte Kief- most popular size is used in all in- will also be looking at adding to our few decades, and while he laughs at er area of growth for Sivon Manu- fer, and her husband, Ron, took dustries splicing O-rings, to corner product line.” the notion of his “semi-retirement over management in the 1970s. facturing, she said. gaskets for complicated profiles. plan,” he and Charlotte will contin- Airplane manufacturers, both “We are a full-service manufac- ue to serve as technical consultants Now on their way to “semi-retire- Future offerings ment,” the Kieffers are transitioning commercial and military, want to turer for our customers from the to the family business for at least management to the third genera- ensure that their aircraft achieve splicing units, and with molds for One of those expanded product several months. tion, their daughter, Kathleen Ritts, reduced noise and compression splicing the extrusions, rubber cut- lines will include new adhesives to The company is proud of its fam- and her husband, Shawn. levels. ters and the adhesive to splice,” meet the needs of various indus- ily heritage, Charlotte Kieffer said. Among the various industries Sivon Manufacturing has a glob- Charlotte Kieffer said. tries, Ritts said. “Some of our customers have that Sivon Manufacturing sells to al presence in each of these indus- Adhesives made by Sivon Manu- Future products that Sivon Man- been with us for 40 or more years,” regularly is the architectural field, tries. Even as an employer with facturing are composed of neo- ufacturing hopes to add include a she said. “You don’t have many where the company supplies a fewer than 10 professionals in- prene and silicones. Many are food cold bonding sponge rubber and a small family businesses like us do- number of O-rings and other auto- volved in the day-to-day opera- grade-acceptable, she added. Sivon two-component adhesive that ing this anymore, so we must have motive molds. tions, Sivon Manufacturing has the also produces a contact adhesive works efficiently at ambient been doing something right. Its rubber gaskets and seals also ability to sell globally to manufac- that crosslinks at room tempera- temperatures, according to Ron “We’re really proud of the fact sell to a wide variety of machining turers to ensure that growth con- ture along with a splicing two-com- Kieffer. that we are keeping it in the fami- and automotive suppliers. tinues outside of the U.S. market. ponent neoprene-based adhesive “It’s perfect for construction or ly,” Charlotte said. “It’s what Ron The company’s full range of “That has been an important that cures at room temperature. other industries that issue big or and I always wanted.” products include rubber cutters, part of our strategy,” Charlotte said. There will be an estimated six- heavy equipment,” he said. “You vulcanizers, splicers, injection “Today, you have to be a global month transition period before the apply the cement and let it set over Scott is a correspondent for Rubber transfer presses, molds, accessories player no matter how big or small Kieffers turn the full operation over night. Bonding applications are & Plastics News, a sister publication and adhesives. you are. So we have set up foreign to their daughter and son-in-law. something we are continuing to of Crain’s Cleveland Business.

Chicago firm buys 2014 WORLD CONVENTION OF MAYO SOCIETIES

Mongoose Metrics SEPTEMBER 25-28,2014 CLEVELAND, OHIO USA By CHUCK SODER expanding its management team. [email protected] Ifbyphone was easily the best potential acquirer, Reynolds said. The company that bought Mon- “Frankly, you want to attach your The 2014 World Convention of Mayo Societies provides a unique, affordable, goose Metrics has the resources to wagon to the thoroughbred,” he take the local call tracking technol- said. and intimate conference experience with international speakers offering high quality ogy company “to the next level and Both companies’ sales have been panel sessions as well as networking opportunities. the level after that,” according to growing in the 25% to 50% range Mongoose CEO Brad Reynolds. annually, and sales should keep ris- Mongoose was acquired by Ifby- ing, Shapiro said. Distinguished experts from Ireland and the United States will lead discussion on the phone, another company that helps That’s partly because the number sales and marketing departments of calls coming into sales depart- newest areas of collaboration and innovation in business, healthcare, education, make the most out of inbound calls. ments is expected to skyrocket over They wouldn’t say how much If- the next four years: 30 billion in- tourism and travel. byphone paid, but the Chicago- bound sales calls were made in the based company just raised $30 mil- United States last year, and that lion in venture capital. Some of the number is expected to reach 73 bil- Panelists include: Brian Griffin, MD, Cleveland Clinic; Dr. Thomas Graham, money is being used to buy Mon- lion by 2018, according to Cleveland Clinic Innovations Chief; Sean P.Hennessy, Chief Financial Officer,Sherwin- goose from its founders — BIA/Kelsey, a research and consult- Reynolds, Jeff Tirey and Stephen ing firm that focuses on local media. Williams; Edward F. Crawford, Park Ohio; Edward McNamara,AON Risk Solutions; Abbey. Reynolds called it “a signifi- Why the big increase? Shapiro John McCann, Mace Corp.;Tommy Griffith, PEL Mfg.; Daniel P.Walsh, Jr. - President, cant exit.” noted that it’s easier to touch a The rest of the money will be phone number on a smart phone Greater Cleveland Region Huntington National Bank among others used to accelerate the growth of the than it is to type an email with your combined company, which aims to thumbs. hire 30 to 50 people over the next “Voice is important again,” he year or so, according to Ifbyphone said. REGISTER TODAY! CEO Irv Shapiro. Mongoose’s founders have a “You will not see announcements habit of starting and selling tech www.clevelandmayosociety.org about layoffs. … Just the opposite,” companies. Shapiro said. In the 1990s, Abbey started an In- When Reynolds was talking about ternet service provider in Cleveland Ifbyphone’s resources, he wasn’t and hired Reynolds as his chief just talking about money. technology officer when he was just For one, Ifbyphone has about 115 19. Abbey sold that company, Inter- employees, while Mongoose has net Access Group, for $15 million in about 35. The Chicago company also 1998, and Reynolds made money on has a broader lineup of software the deal. Three years later, the two products and an experienced man- men founded Expedient, which is agement team, including Shapiro, now a data center company. A Pitts- who previously built and sold two burgh firm bought Expedient — computer technology companies. which still has a data center in Reynolds, who also has sold mul- Garfield Heights — for about $30 tiple tech companies, said he was million in 2005. looking for a way to take Mongoose In 2007, they founded Mongoose For more information and a detailed agenda visit our website “to the next level,” which led him to with Jeff Tirey, who previously was consider merging Mongoose with CEO of a local web development www.clevelandmayosociety.org another company, raising capital or company called Pre23. 20140915-NEWS--10-NAT-CCI-CL_-- 9/11/2014 5:00 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014

PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Shielding blame Let’s not kid ourselves: The NFL’s decision to in- definitely suspended Baltimore Ravens running back Ray Rice has little to do with domestic violence and everything to do with protecting the NFL brand. The league has endured an onslaught of outrage brought on by the release of a video last Monday showing Rice delivering a knockout punch to the head of his future wife Janay Palmer in an Atlantic City elevator. Before the video’s release, the NFL had decided the offense warranted a two-game suspen- FROM THE PUBLISHER sion for Rice. That decision was based on another video from February that showed Rice dragging an unconscious Cable companies need to adapt Janay Palmer off the elevator. Only when criticism began to intensify this summer that the punishment I’ve never put too much thought into Before I joined Crain’s Cleveland Busi- didn’t need, want or use. The model was was too lenient — testing positive for marijuana paper towels, except maybe when I en- ness last year, I was editor at another OK when there were 30 cable channels draws a harsher sanction in the NFL, just ask Cleve- countered a surprisingly soft and ab- Crain’s publication called Waste & Recy- and the monthly bill was $21. land wide receiver Josh Gordon — did the NFL an- sorbent sheet — or one that rubbed my cling News. Now a “basic” cable and Internet delicate hands the wrong way, The giant in that industry, package can easily cost more than a $100 nounce stiffer penalties for players who commit do- like sandpaper. Waste Management Inc., was a month and include literally hundreds mestic violence. But now almost every time I doing something equally un- of channels you’ll never watch. The league only decided to dump Rice once he rip a towel off the roll in my conventional. It had set up a The high prices, lack of à la carte tainted the NFL brand, not because he beat his sig- kitchen, I think — for a split sustainability arm that worked choices and, frankly, some lousy cus- nificant other. The NFL could embrace the ambigui- second — about something I with businesses to reduce tomer service, have pushed many cus- think is remarkable. their garbage, with the ulti- tomers, especially young adults, to sim- ty of the first video and hope it would go away, a Sometime over the past few mate goal being “zero waste.” ply cut the cable and view content online hope aided by the league neglecting to conduct a years, a paper towel maker In other words, the nation’s with services such as Netflix. thorough investigation, because Rice still benefited (and I’m not sure which one) largest garbage hauler was Last week, HBO and Showtime floated the NFL. Last week’s video changed that. Rice was decided to think about cus- teaching businesses to elimi- the idea of offering their channels over now toxic, and he had to go. tomer needs and cut the size JOHN nate garbage. the Internet to users who don’t subscribe NFL commissioner Roger Goodell spoke back in of the traditional sheet in half. CAMPANELLI Actively and eagerly reduc- to cable. (HBO already does it, with ap- Some spills are small, right? ing demand for your core parent success, in Scandinavian coun- 2010 about his top priority in “protecting the shield” Go to the grocery today, and you’ll no- product? Think about that as a business tries). for the 32 team owners for whom he works. “My job tice that half-sheets are practically in- model and it seems like the Looney The end game is fairly clear here: We is to protect the integrity of the NFL.” We all know dustry standard. Tunes theme music should be playing in will be getting all of our viewing enter- that words like “shield” and “integrity” are just coded But before we consumers got to expe- the background. tainment on the web … soon. Part of the language for the NFL’s brand, which is where the real rience the convenience and flexibility of It does seem kind of nutty until you reason is the natural evolution of the In- money lies. The NFL, a nonprofit trade association, the half-sheet, the idea had to go think about the motive: serving cus- ternet. But what is accelerating this through levels of decision-makers who tomers whose needs and desires are move is the simple fact that cable com- posted almost $10 billion in revenue in 2012, accord- were evaluated and likely compensated evolving. It starts to seem downright panies — unlike forward-thinking towel ing to its 990 tax form. on profitability. smart when you think about the busi- makers and trash haulers — have put Problems arise for organizations, though, when They no doubt asked this question: nesses that haven’t caught on. customers down the list of their priori- protecting the brand gets in the way of doing what’s Why should we voluntarily do something For decades, cable television compa- ties. right. And that’s where the NFL fumbled. Instead of that will result in people using and buy- nies have forced customers to pay for They have made a mess that no taking a firm stance on domestic violence after the ing less of our product? products — in this case, channels — they amount of paper towels can clean. legal case against Rice had been resolved back in the spring, the NFL copped out by issuing a slap on the wrist. For an organization so concerned about its brand, TALK ON THE WEB it doesn’t make a lot of sense. Consider this: The biggest domestic growth area for the NFL is with Re: Baseball while unemployed feel it as such. got fed up and began picking up trash on thrives in Akron — Thomas McFreeman our morning walks. women, who now make up 46% of the league’s fan Maybe people will think twice about base. What message is the NFL sending to female I’ve worked on the Canal Park renova- tossing out their empty lunch containers fans with its initial decision? That the league only tions and know that Akron RubberDucks Re: One man’s trash … if the street is clean and looks taken care sees value in women as consumers, not as human owner Ken Babby is a guy who really Thank you to Crain’s publisher John of. cares. beings? But don’t worry, ladies, the NFL respects you Campanelli for sharing the story about — Margy Judd Nice guy doing wonderful things. GO new University of Akron president Scott — they wear pink every October to remind you about DUCKS! Scarborough’s attention to detail, in- breast cancer! They make jerseys just for you! And — Dave Dobransky cluding a “not-to-do” list that mentions Re: Port authority’s maxi dresses and halter tops! “failing to pick up trash.” busy year Ray Rice was cut by the Baltimore Ravens and is Re: The true I work at the University of Akron and According to the Cleveland-Cuyahoga now serving an indefinite suspension. You can’t unemployment rate found this tidbit interesting. I have found County Port Authority’s website, Spli- blame women for wanting to instate the same pun- Read any econ 101 college-level text- myself picking up trash as well. ethoff will offer two sailings in the month book and you will find that full employ- — UofA employee of September. (The port authority is ishment on the NFL itself. If the league doesn’t get chartering the Fortunagracht, a ship beyond protecting its brand and genuinely commit ment is between 4% and 6%. A national average of 6.1% is a total Can’t agree more. owned by the Amsterdam-based Spli- to true integrity, it may have to come to that. joke. The real unemployment rate na- After walking in our Tremont neigh- ethoff Group, for $850,000 a month,) tionally is 23%. Those looking for a job borhood for the past 14 years, we finally If business is that good, maybe the 20140915-NEWS--11-NAT-CCI-CL_-- 9/11/2014 2:19 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 PERSONAL VIEW AVAILABLE FOR LEASE. COMPETITIVE RATES Up To 11,500 SF of Office Space Port is full of opportunity 20325 Center Ridge Rd., Rocky River, OH

By WILL FRIEDMAN — a scheduled liner service for international freight. Goodyear Tire & Rubber Co. an- For the first time in decades, nounced recently that it’s no longer Ohio firms have a direct, sched- considering Ohio as an option for a uled option from the Port of major, new manufacturing plant Cleveland to the cargo hub of that will supply markets in North Antwerp, Belgium, which has on- and Latin America. ward connections to destinations Although this decision stings worldwide. now, what’s good for Goodyear, Early adopters of our new service which recently doubled down on its are saving time and money while headquarters in Akron and employs reaching markets in Europe, Russia, over 3,000 Ohioans, is good for the Asia and the Middle East. Users are Buckeye State. reporting door-to-door transit Rather than cry in our cereal, we times between Cleveland and Eu- • Full 2nd Floor and 8th Floor Penthouse • Central to Restaurants and Shopping should take heed of the considera- rope up to 10 days faster than ship- Available • ½ Mile to I-90 tions that drove Goodyear’s deci- ping through an East Coast port. • Ample Underground and Surface Parking • Competitive Rates sion so we are in the best possible Ohio is already a powerhouse in position to compete for invest- global commerce. The U.S. Depart- Julie I. Sabroff ments going forward. ment of Commerce recently re- To that end, Goodyear’s news released figures indicating that firms 216.839.2029 lease cited “logistics (. . .) and access in Northeast Ohio alone exported HannaChartwell.com Friedman is president and CEO to a deep-sea port” in particular as goods worth $18 billion in 2012, a of the Port of Cleveland. “key factors” in the decision. With figure that has grown significantly growing markets in South and Latin over the past five years. America, it’s understandable that a While the full potential of the It’s our job to convince regional Midwestern location was not ideal fourth coast has yet to be fully real- firms and others throughout the for this plant. ized, this all-water connection to Midwest that ocean services based The added costs of shipping from the world does provide significant at the Port of Cleveland, including Call Joe Thomas, Work With Joe Thomas! Ohio were likely a factor in competitive benefits to Ohio busi- our new CEE service, add value to Goodyear’s statement that “locat- nesses, and we have data and real- their global supply chain opera- • ONE CALL • ONE SOURCE • MANY RESOURCES • ing in Ohio would add more than world results to prove it. tions. $50 million a year in costs over oth- A recent study conducted under We know old habits die hard. It Joe Thomas er locations.” the auspices of the U.S. and Cana- will take at least two shipping sea- The good news is that Ohio’s dian Seaway management agen- sons for our CEE service to fully global traders can, in fact, save cies and shipping groups reports penetrate the market and stabilize money shipping directly from the that shipping goods from the financially. Port of Cleveland. Great Lakes through the St. We knew going in we had to play Many businesses in Ohio and the Lawrence Seaway is 24% more the long game. Ports invest “patient A Trusted Name Midwest serve markets that are fuel-efficient than shipping by rail capital” that can take years or even cost-effectively reached by a direct and 531% more efficient than by decades to result in job growth and sea route from the Great Lakes. truck. These are material savings new investments. That’s the A Certified Minority-Owned Business Enterprise. Since arriving here four years ago, that can go straight to the bottom essence of our mission. Independently Owned. Independently Operated. I’ve steered our port on a course to line. I hear some say shipping on the exploit this advantage for business- The Economist recently released Great Lakes is obsolete or doesn’t es with high sensitivity to port ac- an analysis of what makes cities matter anymore. The Goodyear de- • PROMOTIONAL PRODUCTS • PRINT SERVICES • BUSINESS cessibility and other logistics fac- economically competitive on a cision tells us just the opposite is tors. global scale. “Easy maritime ac- true — our Lake Erie and Ohio Riv- STATIONERY • AWARDS • WEARABLES • SIGNAGE Our primary challenge is increas- cess” was a key factor, with nine out er ports matter now more than ing awareness because many com- of 10 of the fastest risers in compet- ever. Grassroots Personalized Customer Service panies have, regrettably, forgotten itiveness being a seaport or having With adequate support and the A Franchisee of the Proforma Worldwide Network that Ohio does have access to glob- easy maritime access, while those opportunity to pitch our capabili- Contact info: Proforma - JOE THOMAS GROUP al markets through the St. Lawrence losing competitiveness are lacking ties, our ports will help Ohio win 13500 PEARL ROAD, STE: 139-107, CLEVELAND, OHIO 44136 Seaway. in this area. the future competitions for invest- [email protected] | Phone: 440-268-0881 For exactly this reason, we began When the Seaway was completed ments and jobs. www.joethomasgroup.com | www.proformajoethomasgroup.com in 1959, the Great Lakes were hailed the Cleveland-Europe Express That’s job one every day at the as America’s “fourth seacoast.” (CEE) ocean cargo service this year Port of Cleveland.

TALK ON THE WEB SEPT. (CONTINUED) 26TH port authority should try underwrit- ing Cleveland international air service, too. — Robert Salmon Re: Little Mountain Country Club renovations (Northeast Ohio golf pro) Jimmy Hanlin is on the right track. I’ve played Little Mountain once and was not impressed. As an “average” golfer, I want the opportunity to post a halfway decent scorecard, but Little Mountain with its bunkers everywhere did not afford that possibility. PRESENTING SPONSOR I will play again on the redesigned course, providing, of course, I’ll still be able to afford it. Good luck to all the golf courses in the area. Times 1.800.ELK.OHIO | elkandelk.com/lagala are, indeed, tough. — df1898 ELK & ELK CO., LTD. 20140915-NEWS--12-NAT-CCI-CL_-- 9/11/2014 2:49 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014 SWEET continued from page 5 diving into modern gastronomy hub for adventurous eaters, is fertile 16-year-old dishwasher at the now- with Homaro Cantu at Moto, an ground for Griffith to experiment defunct Johnny Mango’s in Asian-influenced eatery. He then and reveal his personal style. Willoughby. At home, he made moved to executive pastry chef of Approachable items like strawber- desserts as a hobby. ING Restaurant before he and Mef- ry mousse share the menu with un- “I made the same chocolate pud- fert relocated to Cleveland. expected concoctions — think me- ding cake everyday for two years Serendipitously, Griffith lived in dieval bone marrow custard in a starting when I was 15,” he says. Chicago’s Ukrainian Village, on the bone. He briefly studied chemistry at same block as Greenhouse Tavern Griffith characterizes his tech- John Carroll University — a subject sous chef Brett Sawyer, and didn’t nique as “modernist American with directly tied to pastry-making — be- even know it. French undertones.” All his desserts fore enrolling at the Culinary Insti- “It was meant to be,” Griffith says. are built upon a French-inspired tute of America, from which he “Anistar and I decided to choose foundation like mousse or soufflé, graduated with an associate’s de- Cleveland over her hometown of and embellished with mod-Ameri- gree in baking and pastry arts. Madison, Wis., and were blown away can accents such as fluid gel, foam, He studied beside the late famed by what’s happening here.” or tapioca maltodexterin powder. chef Charlie Trotter before deep The Greenhouse Tavern, a local Blending together Meffert spent her early teen years as the only girl crafting the pastries, stocks and sauces for a fine dining French eatery in her native Madison. After high school, she was the sole PHOTOS BY MCKINLEY WILEY female graduate of a class of 11 from Anistar Meffert attempts to “stay true to the Charlie Trotter approach” with such École Supérieure de Cuisine desserts as berries and cream. Vincent Griffith, below, says relocating to Cleve- Française, Grégoire-Ferrandi, a pre- land was “meant to be.” mier culinary school in Paris. She se- cured an elusive year-long position as garde manger — French for “keeper of the food” — at Alain Ducasse au Plaza Athenee, a three- Please join us for our Michelin Star restaurant, and under- studied with world-renown French BRONZE KEY GALA master pastry chef Christophe Michalak. November 1, 2014 Meffert traveled extensively throughout Europe and in Asia, Cleveland Museum of Art training at the world’s best restaurants. She was brought on as Charlie 6:00 pm Trotter’s executive pastry chef, and along with Griffith and a handful of other pastry cooks, helped the www.recres.org restaurant earn two Michelin stars. A three-month working vacation in Midtown | Old Brooklyn | Lakewood Asia ensued. She joined Griffith at Moto, where 216.431.4131 a confection such as fried rice paper and seasoned with freeze-dried fruits, honey, soy milk and liquid ni- trogen poured tableside further ex- posed her to the showy side of pastry making. Nowacki Asset Management LLC Meffert transitioned some of those influences into her creations early example. on Oct. 4 at the Meffert family’s 100- on at Crop, but then tempered their That dessert, composed of acre dairy farm in Wisconsin, at complexity so as to not totally con- scratch crème fraiche, local berries, which the bride and groom will for- found diners. dried milk powder and whipped age, prepare and serve a multi- “I try to stay true to the Charlie vanilla cremeux, incorporates mul- course menu for 100 guests. Trotter approach of innovative tiple flavors and textures. “I don’t Ultimately, the couple envision American food using high-quality in- like everything to be all one note or marrying their talents, too. gredients,” she says, and references too heavy,” Meffert says. “We want to eventually open our Crop’s berries and cream as an The Lakewood residents will wed own restaurant,” Meffert says.

GET DAILY NEWS ALERTS Harbor Group FROM CRAIN’S Management Company is pleased to announce the signing REGISTER FOR FREE EMAIL ALERTS AND RECEIVE: of a new 25,000-square-foot Nowacki Asset Growth of $1 S&P 500 Total Growth of $1 Period THE MORNING ROUNDUP Management (NET) Million Return Million long-term lease with BREAKING NEWS ALERTS May 2011 - Year End -7.46% $925,400 -6.37% $936,300 Dix & Eaton DAILY HEADLINES 2012 29.99% $1,202,927 16.00% $1,086,108 at 200 Public Square, 2013 51.76% $1,825,563 32.39% $1,437,898 Cleveland’s Premier REAL ESTATE REPORT: Published Monday. 8/31/2014 21.27% $2,213,931 9.88% $1,519,283 Business Address. HEALTH CARE REPORT: Note: Returns are shown in U.S. dollars after fees. Date of inception for Nowacki Asset Special thanks to Allen Wiant of Published Tuesday. Playhouse Square Real Estate Services Management is May 2nd, 2011. who represented Dix & Eaton in the transaction. DEALMAKER ALERT: Nowacki Asset Management (NAM) is a registered investment advisory firm For 200 Public Square leasing information: Published Wednesday. Brian Hurtuk, SIOR specializing in value-oriented investment management. All client assets are included in Colliers International | Cleveland MANUFACTURING REPORT: one composite and invested using a value-oriented strategy. NAM claims compliance +1 216 239 5060 Published every other with the Global Investment Performance Standards (GIPS®). Results as of 7/31/2014 www.colliers.com/ohio Wednesday. are still subject to final verification by an independent third-party. NAM only uses short-term margin or leverage to buy securities after a client commits to deposit SMALL BUSINESS REPORT: funds and the funds are in the process of being transferred, but the money has not yet Published Thursday. completed the transfer process. To receive a list of composite descriptions of NAM and/or a presentation that complies with the GIPS standards, contact Michael T. SHALE AND ENERGY Nowacki at (440) 488-6936 or write Nowacki Asset Management, 29525 Chagrin Blvd. REPORT: Published Friday. Suite 301, Pepper Pike, Ohio 44122, or [email protected]. www.nowackiassetmgmt.com CRAINSCLEVELAND.COM/REGISTER 20140915-NEWS--13-NAT-CCI-CL_-- 9/11/2014 2:20 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13 GOING PLACES

JOB CHANGES CONSULTING BROWNFLYNN: Sarah Corrigan to associate consultant. FIVE LAKES PROFESSIONAL SERVICES: Andy Attina, Jzohnna Jackson, Melissa Kovach and Karp Farmer Freiman Zion Do you know your lender? Stephanie Hasman to account Cooperative Business Services and Cardinal Community representatives. Credit Union offer you local ﬁ nancing you can trust. LIGHTHOUSE COUNSEL: Larry $10,000,000! L. Griffin to senior consultant. Jonathan Mokri • Aggressive Financing up to • Commercial Real Estate Financing EDUCATION 440.526.8700 (Owner Occupied or Investment) • Purchase or Reﬁ nance machinery, BALDWIN WALLACE UNIVERSITY: [email protected] Dan Karp to assistant vice president equipment or other capital assets www.cbscuso.com and director, university relations. Behun Whited-Sims Kelly • SBA 7(a) and SBA 504 loans (10% down) BEAUMONT SCHOOL: Anna Beyerle to public relations and NONPROFIT for Service to the University; Andrew marketing manager; Allie Primisch to CATHOLIC CHARITIES: Kelli Behun Jackson (AJ Automotive Group and recruitment and admissions associate. to director, human resources. Elsons International), Kenneth P. Jayjack (American Greetings Corp.), KENT STATE UNIVERSITY: CHILDREN’S MUSEUM OF Richard Janus (Victory Capital Providing Commercial Loan Financing in Partnership with Area Credit Unions SM Mindy Farmer to director, Visitors CLEVELAND: Cathy Schreiber to Management), Sam McNulty (Bar Center, College of Arts and Sciences. director of education. 25 LLC) and Cynthia Struk (Summa Health System) received Distinguished FINANCIAL SERVICE REAL ESTATE Alumni Awards. BASS OHIO REAL ESTATE: STAY CONNECTED! BROWN GIBBONS LANG & CO.: FEDERAL BAR ASSOCIATION, Courtney Nebons to sales associate. Clifford M. Sladnick to managing NORTHERN DISTRICT OF OHIO director. Follow us today! SERVICE CHAPTER: Judge Nathaniel Jones CBIZ INC.: John A. Fleischer (retired, Sixth Circuit Court of Appeals) to chief information officer. HUGHIE’S EVENT PRODUCTION received the Pillar of Justice Award. Facebook.com/CrainsCleveland | Twitter.com/CrainsCleveland | Instagram.com/CrainsCleveland SERVICES: Carla Whited-Sims HEALTH CARE to production consultant. LAKE HEALTH: Jennifer LIFE SAFETY ENTERPRISES INC.: Bradstreet, M.D., to system medical Andrew Blake to manager, director, Lake Health Emergency operations division. Cleveland Departments. LITIGATION MANAGEMENT INC.: 600 Superior Ave. East Kathleen B. Seibyl to vice president, Suite 1600 INSURANCE strategic initiatives; Maria Petruccio to vice president, project management Cleveland, Ohio 44114 RISK INTERNATIONAL: and client services; Deborah J. Mark Freiman to senior consultant. Phone: 216.830.6830 Prokay to director, logistics; Kai C. Fax: 216.830.6807 Jones to director, organizational LEGAL development; Christine S. Steere CIANO & GOLDWASSER LLP: to director, medical division. J. Matthew Linehan to associate. MEYERS, ROMAN: Carolyn Blake TECHNOLOGY to of counsel; Anne C. Fantelli to BOXCAST: Lena Kelly to digital attorney; Albert G. Hehr III and storyteller and communications Collective Experience. Jonathan T. Hyman to partners. associate. STARK & KNOLL: Nathan B. Zion to associate. AWARDS Collaborative Culture. MARKETING CLEVELAND STATE UNIVERSITY: Creative Solutions. C.TRAC INC.: Brent Evans to Anthony S. Bakale (Cohen & Co.) business development manager. received the George B. Davis Award

Send information for Going Places to [email protected] Beyond legal advice – it’s about business solutions. Brouse McDowell’s Intellectual Property Practice Group protects your ideas through trademarks, patents and copyrights, but have you thought about:

We Solve Problems… Now Even More Of Them.

Litigation • Criminal Defense • Domestic Relations Q Design Patents & Trade Dress Q Social Media Immigration • Government Relations • Estate Planning Business Transactions • Real Estate • Employment Q Infringement Analysis Q Music Banking • Regulatory and Administrative • Competition Q Freedom to Operate Analysis Q Patent Assertion Entities

Q Branding Strategies Q Due Diligence: Mergers & Acquisitions Through strategic alliances with two outstanding law firms -- Mills, Mills, Fiely & Lucas and The Herman Legal Group – Q Counterfeiting Q IP Audits Our business law firm is proud to announce a broad expansion of our services. Visit our website to read about our expanded practice areas. www.gertsburglaw.com 330.535.5711 Ext. 272. www.mmfllaw.com For more information, contact Heather Barnes at www.hermanimmigrationlawyer.com

36 South Franklin St. | Chagrin Falls | 440-571-7777 Cleveland Q Akron Q Lorain County Q www.brouse.com 20140915-NEWS--14-NAT-CCI-CL_-- 9/11/2014 2:11 PM Page 1

Paid Advertisement Boundless Globalization A CFO’s guide to realizing international ambitions By James Ritchie

s firms throughout the U.S. The finer points can take a lifetime to master. Few CFOs “Bankers don’t just provide access to capital or products undertake growth initiatives such have the time to understand every nuance of a new business or services,” Masters says. “We provide access to as introducing new products, environment, especially when their growth strategy might people — peer-to-peer insight and experience.” entering new markets, and acquiring involve multiple countries. Ultimately, the CFO’s role in globalization is the same other companies, they’re looking to Bank of America Merrill Lynch relies on their experience as in other areas: Support the organization’s strategy their CFOs for much more than financial with clients from nearly every industry, that have been while managing risk. “People in hyper-growth mode are leadership. They’re depending on them through the growing pains of international expansion, quickly wearing many different hats,” Masters says. “I call John Masters to oversee a wide range of new areas to aid other clients. Their from-the-trenches advice can globalization a team sport. You not only need support Managing Director and play a key role in setting corporate complement that of lawyers, accountants and consultants. and data, but to hear about different experiences.” Cleveland Bank of America direction and identity. Firms can also measure their performance against vast Merrill Lynch “The CFO has evolved from this amounts of benchmarking data through a Bank of America For more on how your Cleveland business can expand accounting function — the most senior Merrill Lynch tool called PeerProfiler.® internationally and adapt to the demands of rapid growth, accountant in a company — to being this strategic leader contact [email protected] who, by the way, is also involved in finance,” says John Masters, Bank of America Merrill Lynch managing director for Cleveland. One area in particular associated with an aggressive growth enterprise is globalization. More than half of U.S.- headquartered, mid-size companies are now conducting business outside the country’s borders, and many smaller firms are finding opportunities overseas, too. In a Bank of America Merrill Lynch survey, a large majority — 76 percent — of CFOs predicting above-average sales growth for 2014 expected to see increases from international sales. But global strategies bring new challenges. And in fast- growing organizations, it’s typically up to the CFO to find a way to overcome them. Key issues include foreign exchange, repatriation of revenue and unfamiliar laws and customs. “It falls on the CFO to set up relationships with facilitators and find the right intermediaries to do business there,” says Masters.

HIGH-STAKES TERRITORY It’s not hard to see why globalization has taken hold: The growth possibilities in developing markets can be hard to match elsewhere. For example, China’s economy is likely to expand by 7.6 percent in 2014, according to BofA Merrill Lynch Global Research. That’s compared with projected growth of three percent for the U.S. economy. International acquisitions can be a quick way to ramp up a company’s presence and sales in new markets. In tough-to-crack regions, they may be the only viable way in. In this high-stakes game, CFOs must see the firm through funding the expansion, operating profitably, complying with local laws and, ultimately, accessing the money it makes. It’s easy to overlook a tax issue or other matter that can sink a company’s plans. To smooth a firm’s entry into global markets, an experienced global bank can connect the CFO with experts and other managers who have been where they are. For a given country Expand your business with greater or region, a banker can work with the CFO to create a suitable treasury management structure. visibility, control and efficiency. “It’s a strength of ours,” says Masters. “We have people on the ground in the countries where they want to do business, and baml.com/globalstrategies we’re doing business there ourselves.” Factors to consider include the company’s objectives and need for liquidity as well as local regulations and tax implications. “Our CashPro® Online treasury management system is a tool that can help rapidly expanding companies manage their cash and information flows,” Masters says. ™ The bank also helps firms understand issues such as currency, The power of global connections fraud and regulatory risk.

LESSONS FROM THE TRENCHES “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, Language and culture differences can also be major stum- and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America bling blocks. For example, handling business cards the wrong Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional way can signal a lack of respect in China and Japan. It’s crucial Clearing Corp., both of which are registered broker-dealers and members of SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members in both countries to give and receive cards with both hands of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. THE POWER and to review cards carefully before putting them away — OF GLOBAL CONNECTIONS is a trademark of Bank of America Corporation. CASHPRO and PEERPROFILER are registered trademarks of Bank of America Corporation.” © 2014 Bank of America Corporation 08-14-0949 preferably in a nice case or portfolio, not your pocket. 20140915-NEWS--15-NAT-CCI-CL_-- 9/11/2014 4:10 PM Page 1

SEPTEMBER 15 - 21, 2014 CRAIN’S CLEVELAND BUSINESS 15

THERE CAN ONLY BE ONE FLO Firms need to take steps to protect their brands PAGE 16

CHANGING THE RULES IP attorneys say new law hasn’t been a complete game-changer PAGE 18

WHAT YOU NEED TO KNOW Experts share top pieces of advice PAGE 19

SECURING STARTUP IDEAS ILLUSTRATION, FOTOLIA (2) New firms must not overlook the fuel behind their business PAGE 20 20140915-NEWS--16-NAT-CCI-CL_-- 9/11/2014 2:09 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014 Keeping your brand one of a kind — just like Flo By KATHY AMES CARR tect both the character and the Silencing the megaphone [email protected] company’s brand. “Flo” is now “Everyone has a megaphone pending trademark registration, nowadays,” said Sam Khoury, a We first were introduced to Flo in said Peter Albert, the firm’s deputy partner with Willoughby-based a Progressive Insurance television ad general counsel. Rankin, Hill & Clark. “There are a in 2008. Not surprisingly, the lov- “We’ve been kicking it around for million little threats.” able, quirky brunette with bright red some time. We’ve seen people So at what point do organizations lipstick quickly captured our hearts, tweeting as Flo, costumes with Flo intervene — or even take legal ac- helping her become one of the and imitators in the marketplace most recognizable characters copying her character,” Albert said. tion? in recent advertising history. “We feel her character should be “The use of social media doesn’t Soon, people were protected the way our name and make the rules of the game any dif- dressing as Flo for Hal- logo is.” ferent in terms of protecting your loween and imitating her A trademark is a brand’s armor name,” said Michael Stovsky, part- one-of-a-kind look and per- for its logo, name, design or symbol. ner of Cleveland-based Benesch. sonality. A high school fan And, with the proliferation of social Sure, some uses may be per- even launched a Flo Facebook media, companies, organizations ceived as free advertising, but the page, which today has more than 5 and even individuals are finding it real danger is in the trademarked million fans. (That page is now over- increasingly difficult to protect their item’s misuse. Plucking a company seen by the Mayfield Village-based brands from misrepresentation and logo and using it for the sale of company after the creator contacted misuse. someone else’s goods or services is Progressive because it was too time In the sports world, for example, hallmark trademark infringement, intensive.) “MACtion” — a catchword used by legal experts say. Even distorting a As a result of Flo’s widespread the Mid-American Conference — logo, name or symbol qualifies as popularity and viral nature, the com- this year became a trademarked misuse. If a threat is spotted, pany in January took action to pro- term after gaining widespread pop- Khoury suggests the company first ularity on Twitter. contact the social media site — like Even though it’s a term not easily Facebook or Twitter — to remove defined, the word became so recog- disparaging material before con- nizable that commissioner Jon tacting the individual. Steinbrecher said in a Feb. 9 “If you immediately start going Crain’s story that it had “taken on a after individuals, you can get this life of its own.” Streisand effect,” said Khoury, refer- Even Cleveland Browns quarter- ring to the phenomenon, named af- back Johnny Manziel is trying to ter Barbra Streisand, of generating protect his brand, making the move increased publicity after attempts to recently to trademark “Johnny suppress information. “People get Cleveland.” It’s the 10th trademark touchy, and everyone feels the need that he and his company have ap- to jump in on the conversation. You plied for, with others including get this community retribution.” “Johnny Football” and “JFF.” Contacting the host first, there- Middle Market Banking

AN INDUSTRIAL Intellectual Property Law Since 1884, Fay Sharpe has STRENGTH focused on one thing RELATIONSHIP. Intellectual Property Law In today’s world, ideas often have more Diverse financial solutions aren’t enough to value than the buildings that house them. help you achieve your business goals. Knowing You need to protect your physical assets how to apply those solutions to your company’s and your intellectual assets, whether specific challenges is the real difference maker. that’s patents, trademarks, copyrights or That’s where the client-focused experts at other intellectual property. First National Bank come through for you ... At Fay Sharpe, we strive to protect, preserve not just recommending financial tools, but and enhance your intellectual property following through to ensure you’re on track {assets in a creative, cost-effective and to the outcomes you desire. transparent manner, helping you achieve your business goals. To learn more, visit fnb-online.com or call 1-800-555-5455.

FINANCING – TREASURY MANAGEMENT > Contact us about protecting your assets today. WEALTH MANAGEMENT – INSURANCE

The Halle Building, 5th Floor Q 1228 Euclid Avenue Q Cleveland, OH 44115 Telephone: 216.363.9000 Q Facsimile: 216.363.9001 Q www.faysharpe.com

PROTECTING IDEAS SINCE 1884 20140915-NEWS--17-NAT-CCI-CL_-- 9/11/2014 2:10 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17

SAFEGUARDING YOUR BRAND Having an online presence is valuable for companies and organizations, but monitoring a brand isn’t easy. Here are some ways that help you protect your firm’s reputation:

1 REGISTER YOUR BRAND — This action can prevent a loss of time and expense in trying to reclaim your mark once someone else has registered it.

2 HAVE A MONITORING SYSTEM IN PLACE — Websites such as KnowEM.com (which checks trademark availability on social networking sites); fore, can save a company a PR TweetBeep.com (which receives alerts when people are tweeting about your company); and Adgooroo.com (which provides reports about who is bidding headache. on keywords related to your trademarks) are effective internal tools. “There’s not a ton of case law on this, but the situations between the 3 TAKE AN ACTIVE ROLE IN SOCIAL NETWORKING SITES — Generate your own positive press and benefit from the viral effects. “There may be a big user, company and Twitter usually passion for your brand, and social media allows the community to own representation of the brand to a certain extent,” said Nader Ali-Hassan, Progressive’s settle” by Twitter removing the con- marketing manager of social and digital. “They’re your storytellers, too.” tested material or Twitter handle, he said. 4 DETERMINE YOUR PAIN TOLERANCE — What type of infringement are you willing to tolerate? Will you send out cease-and-desist letters or take a A company also should educate its less-stern approach? employees on social media use, and make sure they know when to spot 5 IMPLEMENT AN EMPLOYEE POLICY THAT ADDRESSES SOCIAL NETWORKING CONDUCT potential minefields. “Employees on social media can Source: American Bar Association, Crain’s research be your most effective police force,” said Richard Sharpe, partner at Cleveland-based Pearne & Gordon, an intellectual property law firm. What’s in a name? I speak Sometimes an offensive move is warranted if an institution or organization wants to be proactive, rather than reactive, in protecting its brand. technology Kent State University sought to with a educate its students about the pit- business falls of improper logo and name us- accent. age by issuing in 2013 a cease-and- desist order, requesting students refrain from using the university’s It’s a language you don’t learn overnight. logos and marks on social media. Or master once and done. “It was more about increasing Systems change quickly. Capabilities evolve. awareness about the importance of protecting our brand,” rather than a Breakthroughs create disruption, for better specific situation that prompted the or worse. action, said Rebecca Murphy, asso- Through it all, your business has to ciate vice president for the university’s communications and market- make sense of it. ing. And it has to make sense for your business. “It’s a tough balance, because we Whether you’re a tech company with don’t want to discourage students and promoters who want to share products and services to sell, their love for KSU. A manufacturer with processes to run, Entities that find themselves in the market for a trademark should first Or anyone with IP to protect and leverage. make sure the item is eligible for I’m your translator. And your guide. protection; otherwise, they run the Offering sound judgment and practical advice. risk of brand dilution The popularity of the internation- For licenses and contracts. al Cash Mobs movement prompted Data security and privacy matters. Andrew Samtoy, a local attorney and Compliance, commercialization, transactions, Cash Mobs co-founder, to apply in 2012 for a trademark to protect that IP due diligence, outsourcing. brand, said Khoury of Rankin, Hill & Domestically and globally. Clark. But the application was aban- I don’t make the technology work. doned because the U.S. Patent and Trade Office determined “cash I make sure it works to your beneﬁt. mobs” as a weak, descriptive term and not subject to broad protection. I’m MIKE STOVSKY. “The less descriptive the mark is, I’m on your team. the better the chance of registering it, like Apple for the computer company or Yahoo or Nike,” he said. Flash Cashers, for example, a sep- MY BENESCH MY TEAM arate entity based in Shaker Heights that has a similar goal of staging spontaneous group-spend events, > Chair, Innovations, Information Technology & Intellectual applied for and received its trade- Property (3iP) Practice Group mark this year. > Focuses on representing companies as outside counsel Sharpe of Pearne & Gordon said it in IP and technology transactions, licenses, technology can take a couple of years to trade- transfer and all forms of business process outsourcing mark a name or logo, and the cost (SaaS, IaaS and PaaS). ranges from $800 to a couple thou- > Represents clients in the acquisition, divestiture and sand dollars. The investment is meaningful, as is the time allocated licensing of IP assets and rights, and the purchase and sale to monitoring and protecting the of intellectual property portfolios at private sale and auction. trademarked item from public mis- > 216.363.4626 | [email protected] use. Otherwise, an easily recognizable logo or symbol runs the risk of losing protection rights, as was the case with “aspirin,” “cellophane” and “elevator,” he said. “The worst case would be losing your ability to enforce your rights because the mark becomes generic Cleveland • Columbus • Indianapolis • Philadelphia • Shanghai • White Plains • Wilmington • www.beneschlaw.com from overuse,” Sharpe said. 20140915-NEWS--18-NAT-CCI-CL_-- 9/11/2014 3:49 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014 Want a patent? Make sure you’re first to file

By KIMBERLY BONVISSUTO we used to because of the race to much faster result through the [email protected] WHAT IS THE AMERICA INVENTS ACT? the patent office,” Hochberg said. patent office than through the court system.” Three years after the America In- Prior to AIA, the mechanism for On Sept. 16, 2011, President Barack Obama signed into law Under review vents Act (AIA) started phasing in the Leahy-Smith America Invents Act. The final provisions of the challenging a patent’s validity after significant changes to the U.S. While changes in the practice of issuance was cumbersome and in- patent system, Northeast Ohio law law went into effect in March 2013. According to the United IP law haven’t been dramatic, that effective, Eschweiler said. The new firms say even though the legisla- States Patent and Trademark office, here are some of the key doesn’t mean more additional challenges are handled within the tion was billed as a game changer, provisions of the AIA: work won’t be coming down the patent office by seasoned, senior it hasn’t really impacted their intel- road. examiners and are meant to reduce lectual property law work. Transitioning the U.S. to a first-to-file system. Two new review proceedings in- the amount of litigation brought to The AIA was the most sweeping troduced by the AIA — “inter partes district courts. alteration of the U.S. patent system Providing an enhanced grace period for inventors to safeguard patent review” (IPR) and “post-grant re- “It’s been a venue for people to since the U.S. Patent Act of 1952. By rights against disclosures made one year or less before the effective view” (PGR) — didn’t exist prior to challenge validity where they are moving from a first-to-invent to a the AIA, and both processes bring meeting a certain level of success,” filing date, allowing inventors to engage in negotiations with potential first-to-file system, the U.S. patent new rules and procedures that may said Eschweiler, adding that the re- system aligned itself with the Euro- buyers or investors without fear of losing their right to a patent. end up being a growing area for search shows people who challenge pean Patent Office and placed pres- firms. patents through this process are Creating consistency with international norms. sure on inventors to file patent ap- Both are used to challenge the successful plications earlier. Eliminating the requirement for inventors to set forth the best mode validity of patents with proceedings While area law firms report slow held before the Patent Trial and Ap- to carry out the invention as a defense in infringement actions or in and steady growth in the area of in- peal Board and heard by a panel of Clock’s ticking tellectual property law, they say it post grant review. administrative law judges. Eschweiler said the change to has little to do with the AIA and The first-ever PGR petition was first-to-file also might have more of Providing 75% discount for patent fees to all applicants that more to do with the incremental filed in August. an impact on in-house legal de- growth in the economy. The true qualify as microentities. Salvatore A. Sidoti, founding partments, in terms of reducing cy- impact of AIA, they say, still may Source: United States Patent and Trademark office shareholder of Curatolo Sidoti Co. cle time between when an inventor not be felt for several years. LPA, a boutique IP firm in Cleve- at a company provides an inven- “The IP legal market was bat- land, said the new proceedings are tion disclosure and when in-house tered in the 2008 time frame, like the ability to reach out to clients sis over the last two to three years to a possible way to avoid expensive counsel moves the process along to everyone else. But we’ve seen who hadn’t considered their IP protect that intellectual property. and lengthy litigation. outside counsel to file a patent ap- healthy recovery of growth since needs before,” said Miller, adding In some cases, there also was a “Everyone is looking for best plication. then,” said Tom Eschweiler, a that IP attorneys work across all rush to get in before the new stan- practices in review proceedings,” “They want the number of days shareholder at Eschweiler & Associ- practices to bring in corporate dards went into effect. he said. “Everybody is learning between the two events to be as ates LLC in Cleveland. clients and educate them on the D. Peter Hochberg, president about these processes. It’s an evo- short as possible,” he said. “Conse- Amanda Miller, partner and new patent law. and founder of D. Peter Hochberg lution. Best practices will develop quently, there is a little bit more fo- patent prosecution lead for the 3iP John Cipolla, partner and chair Co. LPA in Cleveland, said he ini- over time.” cus on us guys in private practice to (Innovations, Information Tech- of Calfee, Halter & Griswold LLP’s tially saw more work because of the Miller said she anticipates the move that work expeditiously.” nology & Intellectual Property) IP practice, said his firm experi- AIA in the form of provisional ap- biggest change to her firm’s prac- And, Eschweiler said while the practice group at Benesch in Cleve- enced an increase in patent filings plication filings prior to March 16, tice will involve post-grant pro- AIA has not yet been a seed of land, said there are a lot of things as pieces of the AIA were imple- 2013 — the date the AIA was offi- ceedings. change, there still could be some about patent prosecution the AIA mented over the past three years. cially implemented — because “Those really put us more in line movement in the IP field. changed, but it didn’t fundamen- He added that there is more clients wanted everything to be with the European patent office “The post grant validity chal- tally change the way law firms func- awareness within the business covered under the old first-to-in- and give the challenger the ability lenges will continue to grow, and I tion in the IP arena. community about intellectual vent law. to vet the patent in the patent of- think the IP legal community will “The change in the law gave us property and an increasing empha- “We file applications sooner than fice vs. litigating,” she said. “It’s a see an area of growth,” he said. 20140915-NEWS--19-NAT-CCI-CL_-- 9/11/2014 3:19 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19

“What’s the most important thing a person needs to know about protecting their ideas, innovations and brand?” “Protecting ideas, innovations and brands requires early and close coordination with Success Depends on Unique Ideas your patent and trademark lawyers — delay can be lethal. If you fail to invest sufficient time, effort and money into protecting your innovations and brands, they will deteriorate just like any other part of your business that is neglected. Patents and trademarks should not be treated as commodities to be provided by the lowest bidder. While controlling costs is important, short-term cost cutting on patent and trademark matters will do harm that becomes apparent only years later. A deep, consistent and long-term relationship with your IP counsel will pay dividends for many years to come.” — Steven M. Haas, partner, Fay Sharpe

“You should protect against the possibility of ‘friendly fire.’ Now that the U.S. Patent Office uses a first to file system, it is at least possible that your company’s supposed ally (ven- dor, customer, technology collaborator) can take your technology/improvement (in whole or in part) and include the same in its own confidential patent application without your knowledge. Also, if your company’s innovation is not protected by IP, it is possible that your customer could seek other sourcing for a product you created. Don’t inadvertently design solutions for others, allowing them to reap benefits or cut you out of future profits.” — Mark A. Watkins, patent law partner, Vorys, Sater, Seymour and Pease Akron office

“The most important thing that a person needs to know is how to select the correct vehicle for appropriately protecting a firm’s intellectual property. It is a ‘fit-for-purpose’ problem. It is crucial to realistically evaluate and balance the scope, effectiveness and cost of the various options. The relevant geographic, jurisdictional and durational limits need to be determined. The practical limits on validity and enforceability also need to be considered. Lastly, the costs and related benefits of the different options need to be weighed. Quite often, securing the full benefit of some intellectual property rights also includes potentially significant costs.” — Patrick H. Gaughan, associate professor of law, executive director, Innovation Practice Center, University of Akron Taft’s intellectual property attorneys

“Small inventors need to know that if they want to continue to invent, they need to con- focus on providing individualized, tact their congressman and senators. The House passed HR 3309 ‘Innovation Act,’ 325-91. Although stopped in the Senate, Congress is pushing laws that will make it im- comprehensive legal strategies to possible for non-millionaires to participate in the invention ecosystem: requiring inventors to post a bond when enforcing their patent, disclosing all angel investors who re- meet our clients' business goals. quire anonymity, making all investors personally liable for your litigation costs, and other provisions discouraging invention and making patents a ‘toxic asset.’ You can see the www.taftlaw.com details on my five part series posted on IPWatchDog.com.” — Robert N. Schmidt, chairman and CEO, Cleveland Medical Devices Inc., Orbital Research Inc., Great Lakes NeuroTechnologies Inc., NeuroWave Systems Inc. Chicago / Cincinnati / Cleveland / Columbus / Dayton / Indianapolis / Northern Kentucky / Phoenix and Flocel Inc.; national co-chair, Small Business Technology Council; board member, National Small Business Association

Keep your business heading in the right direction.

Treasury Management from FirstMerit Bank When John talked to FirstMerit Bank’s Treasury Management team, his goal was to increase his company’s working capital. Together, they came up with a plan to help John effectively manage receivables, control payments, and improve his company’s overall cash ﬂow. Now John has all the tools he needs to keep his business moving in the right direction — forward.

TO LEARN MORE, CONTACT: Maureen Murman, Treasury Management Sales Ofﬁcer, at 216-694-5637 or maureen.murman@ﬁrstmerit.com.

Follow the latest market trends ﬁrstmerit.com @ﬁrstmerit_mkt Member FDIC 2411_FM14 20140915-NEWS--20-NAT-CCI-CL_-- 9/11/2014 3:50 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014 Startups need to safeguard their ‘secret sauce’

By DANIEL J. MCGRAW cally hold the idea in flux in the appli- everyone to protect the property by [email protected] cant’s name for a year while full de- INTELLECTUAL PROPERTY SPEAK the trade secret method, and nego- tails are worked out, are a good place tiate rather than litigate if there are When starting a business, there are to start, most patent attorneys say. A PATENT — A limited duration property right relating to an invention. differences.” many costs but few assets, at least be- “utility” patent is the full-scale ver- TRADEMARK — A word, phrase, symbol or design that identifies and dis- “It’s sort of a cold war mentality yond the “secret sauce” — the origi- sion, for which drawings and techni- tinguishes the source of the goods of one party from those of others. with software and trade secrets,” nal spark of an idea that probably ig- cal details are needed to gain ap- Nard said. “Both sides have missiles nited the company in the first place. proval for a 20-year period. COPYRIGHT — Protects works of authorship, such as writings, music and aimed at each other, but they know Oftentimes, however, it’s the in- With legal fees and government works of art that have been tangibly expressed. it is not in their best interest to use tellectual property that will gain fees, the provisional patent can cost TRADE SECRET — Trade secrets consist of information and can include a them. So they figure out how to outside investments and seal distri- a few thousand dollars, while the formula, pattern, compilation, program, device, method, technique or keep things out of the courtroom, bution deals. utility patent can cost $10,000 to process. The U.S. offers trade secret protection under state laws, and they and therefore out of the public eye.” “You can have great talent working $20,000 and higher depending on only protect against unauthorized disclosure. If a trade secret holder fails to for you, but anyone can do that, and the technical documentation and maintain secrecy or if the information is independently discovered, becomes Finding the best route just about everything else in business legal work needed — often an unre- released or otherwise generally known, protection is lost. Trade secrets, can be replicated too, from your alistic amount for a startup. which do not expire, are an alternative to patents, which require the inventor Atossa Alavi, in-house counsel for manufacturing facility and your dis- “Most new companies should ex- to provide a detailed disclosure about the invention in exchange for the right AlphaMicron in Kent, an innovator in tribution system and your marketing plore doing the provisional patent as to exclude others from practicing the invention for a limited period of time. liquid crystal tinting technology used plans,” said Shawn Mastrian, the early on as possible, because it estab- in many types of eyewear, said the key CEO for Darkside Scientific LLC, a lishes a start date when the idea was Source: United States Patent and Trademark Office things for startup companies is to Medina company that a few years first floated, and the company can tell study the market and the science ago developed electroluminescent investors that their idea has patent pany based upon a new idea,” said with patents, and some are best to carefully before making a decision on paint, which glows when an electric pending status,” said Cleveland Byron Clayton, vice president of clus- be left as trade secrets, and a new trademarks and patents. current passes through it. patent attorney Daniel Cohn of ter acceleration for NorTech, a tech- company has to figure out which is AlphaMicron began with military “But in the end, in many star- Howard M. Cohn & Associates. nology-based economic develop- the best track to go on.” contracts in 1996 for shielded visors tups, the only thing you really have The relationship between having ment organization. The recipes for Coca-Cola and for soldiers for better eyesight and that has value is your intellectual legal ownership and intellectual But not all new businesses Kentucky Fried Chicken are the most sun protection, and it has since ex- property, and you have to do all you property is key in attracting invest- should be ramping up into 20-year famous trade secret examples. The panded into products like ski gog- can to protect that,” Mastrian said. ment. full patent mode right away, Clay- reasoning behind not patenting those gles and motorcycles visors. For startups and others, there are “There are some investment firms ton said: “New companies have to recipes is that once they are made “Generally, if you think someone many options for protecting intellec- and individuals who want to see factor the cost, and also the fact that public through the issue of the patent, can reverse engineer what you’re tual property, and the key is timing. some form of patent protection be- a patent does make your idea pub- others might take the original recipe making, meaning they can take it “Provisional” patents, which basi- fore they will even talk to a new com- lic. Some ideas are better protected and tweak it and change a few ingre- apart and figure out how it works, lit- dients so that it might be construed as erally and figuratively, then it is best its own new recipe. Software develop- to get a patent,” Alavi said. ers often decide to protect some of “But one has to figure out what is their specific codes with the trade se- the best blend of patents and trade CRAIN’S UPCOMING FREE WEBINARS cret model. secrets, and, more importantly, how “The software industry as a the cost of patents fits into the initial whole relies on the patent system budget.” less than say, the pharmaceuticals Ted Theofrastous, an intellectual A CONVERSATION WITH RANDI ZUCKERBERG and biotech industry,” said Craig property attorney who works with Nard, director of the Case Western Venture Clinic, said the protection Reserve University School of Law’s of intellectual property also goes A FREE Webinar | October 9 - 2:00 PM IP Venture Clinic. The center re- beyond the mere filing of patent ap- cently received a $3 million grant plications. New businesses have so from the Spangenberg Family many challenges, he said, but they Foundation to fund intellectual really need to keep on top of things Join us as Randi provides expert advice on • Privacy • Online Prescence property research and to help star- and keep their eyes on the protec- tups seeking help in developing tion of their ideas both in this coun- • Networking • Etiquette and the Future of Social Change • Disruptive patent applications. try and around the world. “The problem with software is “Intellectual property is an asset of Innovation and Technology that there are many applications the business, and for startup compa- where different groups have done nies, which typically don’t have a lot different parts of the software to- of assets, its protection can be critical- REGISTER NOW! CRAINSCLEVELAND.COM/WEBINARS gether,” Nard said. ly important,” he said. “So one company might own the “But companies also need to watch Presented by: patent for the physical design of the out who they talk to, who they bring cell phone or tablet, but 100 might in for investment discussions, and to co-own different parts of the soft- know when is the right time to make ware applications needed to run those ideas public with a patent ap- them. So it is best sometimes for plication.”

Can You “Do Social Justice” With Total Rewards? &85$72/26,'27, $/(*$/352)(66,21$/$662&,$7,21 ,QWHOOHFWXDO3URSHUW\/DZ A FREE Webinar

October 14 - 11:00 AM WĂƚĞŶƚ͕dƌĂĚĞŵĂƌŬΘŽƉǇƌŝŐŚƚWƌĂĐƟĐĞ

WƌŽĐƵƌĞŵĞŶƚ͕ŽƵŶƐĞůŝŶŐ͕KƉŝŶŝŽŶƐ͕ŝƐƉƵƚĞZĞƐŽůƵƟŽŶ Come review • SOCIAL JUSTICE • PAY FOR PERFORMANCE / PAY FOR RESULTS STRATEGIES >ŝĐĞŶƐŝŶŐ͕dĞĐŚŶŽůŽŐǇΘ^ĞĐƌĞĐǇŐƌĞĞŵĞŶƚƐ

• THE TRACK TO INCREASE INCOME INEQUALITY /ŶƚĞůůĞĐƚƵĂůWƌŽƉĞƌƚǇƵĞŝůŝŐĞŶĐĞ

WdEdEdD͘KD 20140915-NEWS--21-NAT-CCI-CL_-- 9/12/2014 2:42 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21

KEEPING IDEAS BRIGHT

Darkside Scientific, Medina Invention: Paints that conduct electricity and glow Innovation Paints that are bright and glow in the dark are not a new idea. But paints that conduct electricity and give off a bright glow without a need Center for exposure to exterior light are new. In essence, with the development of the LumiLor water-based paint, Darkside Scientific of Medina created a paint that generates light from within and allows it to be turned on and off like a light bulb. It does so by conducting electricity. It began as a custom-painting idea for motorcycles. But now, the company is fielding ideas for a whole host of products — everything from household appliances to car accessories to building materials. And that is where the intellectual property issues come into play. The company has patented and trademarked LumiLor, but some companies wishing to partner with Darkside Scientific on new applications want to share the patent ownership in some cases. “We have broken new ground, and it would be very dangerous for Host Your Next Healthcare us as a company to compromise our (intellectual property) in any transaction,” said Darkside Scientific’s CEO Shawn Mastrian. or IT Meeting at the “We have told everyone we deal with that we will walk away from any deal that includes sharing our IP. That’s where our value is.” HIMSS Innovation Center Exclusive Offer for Darkside Scientific developed the electro-luminescent paint in 2011 Crain’s Readers and now employ 13 in its Medina plant. The HIMSS Innovation Center at the Global Center for Health — Daniel J. McGraw Book your meeting and Innovation in downtown Cleveland offers a state-of-the-art venue for receive a free copy of hosting events and meetings. “Engage! Transforming Healthcare Through Sprav, Cleveland Conference seating for 150 attendees Advanced A/V Digital Patient Engagement” Breakout areas for mini sessions Gourmet catering Invention: Device for analyzing water used, time spent in shower. ($80 value) Technology Showcase demonstrations Sweeping views of Lake Erie In the days when just about everything has data — and when everyone seems to want data at their fingertips in seconds — Case Western Reserve University student Craig Lewis had a rather simple idea a few years ago. For more information: People are always wondering how long they have spent in the show- [email protected] er, he reasoned, so why not have a device that measures how long a www.himssinnovationcenter.org person is in there, how much hot water they are using and energy costs. In the four years since, that simple idea has morphed into Sprav, a device that fastens to the pipes behind the showerhead that measures water flow, heat and the amount of time spent under the spray, sending that data to a smart phone app that can be analyzed NORTHEAST OHIO LEGAL PROFESSIONALS - ADVERTISE AND SUBMIT AN ARTICLE! by the user. The device then can be programmed to notify the user with warn- CRAIN’S LEGAL GUIDEBOOK: Issue date: 11/17 Be a part of this NEW custom publishing section. ing lights when certain water use threshholds are hit. Practical advice for navigating Contact Nicole Mastrangelo at 216-771-5158 But moving the idea from classroom to the marketplace took more Ad close: 10/ 13 than just hard work and some investors writing checks. today’s business environment or [email protected]. Lewis and his partners first filed for patents on the way the device measures water flow and how it fastens to the shower head. “Those provisional patents cost us about $800, but we were able to use those to show investors and distributors that we were serious about this as a viable product,” Lewis said. The company is in the process of applying a 20-year utility patent. Lewis hopes Sprav will be rolled out in retail stores next year for $39.99. — Daniel J. McGraw THE FUTURE BEGINS WITH A CAPITAL “G”. Intwine Connect, Chagrin Falls For families, family ofﬁces, endowments, and foundations, the path to ﬁnancial stability and Invention: Solutions for controlling household items over the Internet opportunity begins with a company founded by the Pew family in 1956 — Glenmede. As a privately-owned trust company with $25 billion under management, we never struggle with Dave Martin has been working in the information technology world competing priorities. We remain singularly focused on investment and wealth management for many years. He started in sales in the late 1980s with Texas Instru- ments when the big tech device was pocket calculators. and serving your best interests. Our seasoned professionals take a long-term view and gauge But as he has seen the changes in IT over the years, he has always success based on how well we manage your wealth, from one generation to the next. been focused on how technology becomes applicable in everyday life. To that end, he helped found Intwine Connect in 2009. The Chagrin Falls software company is betting that the next big In- ternet change in many households will be the ability to control basic household items such as dishwashers, furnaces and air conditioners over the Internet. The challenge for Intwine Connect, Martin said, is to combine the interests of so many different and somewhat staid industries — appli- ance manufacturers, electric utilities, builders — in an effort to change how consumers use their products. To that end, Intwine Connect has taken on a hybrid approach to its intellectual property: The hardware has been largely patented, while the software developed to operate those devices is kept as a trade secret. “There has not been much consensus in the industry on the value of software patents,” Martin said. “It a difficult decision, because in some respects, all having a patent does is give you the right to prosecute someone who uses your invention.” “But in software, you are collaborating and partnering and sharing information, and the new technology is so disruptive, you really don’t www.glenmede.com know where it is going to go sometimes,” he said. Glenmede’s services are best suited for those with $3 million or more to invest. “So you may be collaborating and sharing with a company that might develop into a competitor. You don’t want to be risk averse, but To learn more, please contact Linda Olejko at 216-514-7876 or [email protected] you also don’t want to give up your intellectual property. It’s a huge CLEVELAND • MORRISTOWN • NEW YORK • PHILADELPHIA • PRINCETON • WILMINGTON balancing act right now.” — Daniel J. McGraw 20140915-NEWS--22-NAT-CCI-CL_-- 9/12/2014 2:35 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM PHOTO ILLUSTRATION; PHOTO: AERIAL ASPECT PHOTOGRAPHY 20140915-NEWS--23-NAT-CCI-CL_-- 9/12/2014 2:36 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 20140915-NEWS--24-NAT-CCI-CL_-- 9/12/2014 2:45 PM Page 1

24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014 MIDNIGHT STARTUPS continued from page 5 continued from page 1 gin in the second quarter compared ical problems instead of adminis- changed behaviors across the coun- universities use to build and manage Medicare beneficiaries. with a 5.5% margin during the like trative considerations. The less ad- try.” their websites. The feds haven’t gone full-press period in 2013. The Clinic’s inpa- ministrative burden we can put on The CampusEAI organizations with enforcement of the rule, but tient admissions fell 4.7% while ob- the docs and more focus on medical It’s not a hotel provide a “fertile ground” for grow- Medicare’s administrative contrac- servation stays ballooned by 17.9%. problem, the better of patients can ing education-focused businesses, tors have begun auditing a handful The combination of the two, how- be.” Hospital advocates haven’t sat given their knowledge of the sector of claims at hospitals around the ever, was flat year-over-year, which The two-midnight rule has forced idly while the rule has taken hold. and access to colleges, Jain said. country to educate providers on the Clinic officials chalk up to the two- local hospitals to retool their admit- They’ve taken their complaints to QuickLaunch CEO Katie Winings rule — “probing and educating,” as midnight rule. ting process by tweaking their elec- the feds, and a coalition of hospitals — who splits her time between the feds call it. Still, that hasn’t “The burden is on the medical tronic medical systems and educat- and the American Hospital Associa- Cleveland and Chicago — said she slowed local hospitals from adjust- staff,” said Dr. Robert Wyllie, the ing doctors on how to properly tion filed lawsuits claiming the rule also gets a lot of help from Jain and ing the way they admit Medicare Clinic’s chief medical operations of- admit the patient so they’re not arbitrarily ignores doctors’ best Michael DeJohn, director of corpo- patients, and it’s already tightening ficer. “It’s something else to think dinged by Medicare’s auditors. judgments. rate development at CampusEAI. their profit margins. about besides the medical care or “Educating physicians was a Hospitals stress the rule hasn’t “I get their continued advice every Take the Cleveland Clinic, the re- the patient’s problem,” he said. tremendous challenge,” said Mary caused them to keep patients longer day. Almost every single hour,” Win- gion’s largest health care system, “You want the doctors and nurs- Ann Freas, Southwest General for the sake of getting paid and the ings said. which posted a 4.8% operating mar- ing staff to focus on patients’ med- Health Center’s senior vice presi- rule hasn’t fundamentally changed Now the EduTech Venture Fund is dent and chief financial officer. the way they care for patients — just regularly receiving applications from “Getting our computer systems up the way they’re reimbursed. entrepreneurs outside of the Cam- pusEAI family of companies, Jain to date for proper documentation, Medicare auditors also comb said. CampusEAI officials also are then understanding what the finan- through medical data to ensure the talking to colleges that might want cial implication were going to be — inpatient stays are medically neces- PLAN YOUR help commercializing their own all of that had implications for the sary. technologies. Among them is Lorain WORKPLACE hospital.” Bill Ryan, president of the Center Plus, regulators require hospitals County Community College, said for Health Affairs, a local hospital DeJohn, who also is general counsel to provide patients with letters ex- RETREAT advocacy group, said the rule seems for CampusEAI. plaining the difference between ob- to contradict Medicare’s other ef- CampusEAI Inc. is separate from servation and inpatient status — a Common Ground corporate forts to reduce the length of stay at the nonprofit, but it’s governed by case not easily explained. retreats combine challenging hospitals. The feds and commercial Jain and school executives who be- ŽƵƚĚŽŽƌ ĂĐƟǀŝƟĞƐ͕ ƉƌŽĨĞƐƐŝŽŶĂů “When they’re in the bed, they payers, for example, are experi- long to the nonprofit’s executive ad- growth programs and team- don’t know the difference between menting with bundled-payment visory committee. The company has the two,” said Craig Richmond, programs that reward providers for ďƵŝůĚŝŶŐ ĞǆĞƌĐŝƐĞƐ ƚŽ ĚĞǀĞůŽƉ provided all of the EduTech Venture MetroHealth’s chief financial offi- keeping patients healthy and out of your associates’ leadership skills Fund’s funding, but it aims to raise cer. “It’s about ongoing communi- the hospital. money from other investors, DeJohn ĂŶĚƉŽƚĞŶƟĂů͘ cation with our patients to make “In many instances, you’ve got said. sure they’re informed along the the pressure of the patient who says The fund in some ways resembles “Combining the Canopy Tour with way.” “I’m fine, I want to go home.’ And the startup business accelerators a half-day Leadership Retreat Health care observers agree the quite frankly, if the physician that have become popular lately, giv- at Common Ground was the best impact would be hardest felt at agrees, what are you supposed to en that it provides young companies retreat I’ve had with my team!” community hospitals like South- do? Keep them an additional 15 with venture capital, office space X Allison M. Boersma, &K͕KKZŝĚĚĞůů west in Middleburg Heights, as minutes and tell them to just hold and mentoring, Jain said. they’re typically the facilities with tight so you can get paid? It’s not But the EduTech Venture Fund typ- the shortest hospital stays. Freas de- like it’s a hotel and you just check- ically makes bigger investments. The clined to disclose how much rev- in.” first seven companies received be- enue Southwest lost because of the While the two-midnight rule is tween $2 million to $5 million each. new rule, but she said its outpatient relatively new, hospitals squabbling It makes sense for the fund to make www.commongroundcenter.org or (440) 707-2044 observation cases spiked by 30% with Medicare over payments for larger investments because Cam- year-over-year. She added, “This is short hospital stays isn’t. The feds pusEAI officials can quickly get a all about less money, not more have such an extensive backlog of good sense of whether an idea will money.” hospital appeals that they recently succeed in the education sector. They The Centers for Medicare & Med- offered a settlement that would pay also get input from outside advisers, such as Prashant “Peesh” Chopra, icaid Services claimed the rule hospitals 68 cents for every dollar who previously was CampusEAI’s would increase Medicare spending billed involving inpatient stays un- SALT • SALT • SALT lead technologist, and technology ex- by about $220 million nationwide, der appeal. ecutives at member colleges. though Moody’s forecast and the “That doesn’t really address the • Water Softener • Industrial • Food For instance, Winings and her co- revenue crunches at local hospitals issue,” Ryan said. founder, Ranjith Madhavan, decided seem to contradict that claim. “It allows CMS to eliminate its • Ice Melt • Sea Salt “I’ve yet to meet any of my peers to develop single sign-on software backlog. It doesn’t address the issue because their clients at LookingGlass who haven’t lost money on this,” from a policy perspective of who is wanted the technology. Now Quick- UH’s Paulson said. Call For Pricing!! responsible for determining Launch’s software is used by 200 “If more than nothing else, the whether an admission is appropri- schools and companies, including Minimum Delivery: 1Pallet change announced by CMS has ate or not.” many LookingGlass clients, Jain said. “We knew that would be a home run,” she added. HOW BAD IS THAT LEAK? GET DAILY NEWS ALERTS FROM CRAIN’S

REGISTER FOR FREE EMAIL ALERTS AND RECEIVE: THE MORNING ROUNDUP BREAKING NEWS ALERTS DAILY HEADLINES REAL ESTATE REPORT: Published Monday. HEALTH CARE REPORT: Published Tuesday. Keep your assets safe by taking the time to ensure that problems DEALMAKER ALERT: at the top of your building are not damaging your bottom line. Published Wednesday. MANUFACTURING REPORT: Carey Roofing Corp. has eliminated asset damage due Published every other Wednesday. to a leaking roof with practical solutions since 1946. SMALL BUSINESS REPORT: Published Thursday. CAREY 216 • 881 • 1999 MEMBER: SHALE AND ENERGY 1-800-547-1538 www.careyroofing.com National Roofing REPORT: Published Friday. Salt Distributors Since 1966 Roofing Corp. Contractors Association founded in 1946 CRAINSCLEVELAND.COM/REGISTER 20140915-NEWS--25-NAT-CCI-CL_-- 9/12/2014 1:04 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 25

Contact: Denise Donaldson Copy Deadline: Wednesdays @ 2:00 p.m. Phone: (216) 522-1383 All Ads Pre-Paid: Check or Credit Card Fax: (216) 694-4264 E-mail: [email protected] REAL ESTATE AUCTIONS NORTHEAST OHIO PREMIER Mortgage Foreclosure - Court Ordered REAL ESTATE AUCTION / OCT. 2 Real Estate Auction Oct.29 • 11:00 AM On-Site COMMERCIAL, DEVELOPMENT & RESIDENTIAL PROPERTIES OFFERED WITH A RESERVE PRICE OF ONLY: COMMERCIAL/OFFICE CONDO $75,000 UPCOMING AUCTIONS 633 W BAGLEY RD., 2A & 2B, BEREA, OH 44017 PRO-LAWN, INC. 3,835 SF Commercial / Office condominium on 2nd floor of high quality, COMPLETE LANDSCAPE BUSINESS well maintained, 2-story, all-brick building built in 1977. 10 private offices, 8 Tuesday, September 16th – 10 AM 2 Industrial Bldgs on 2.75 Acres ABSOLUTE cubicles, conf. room, kitchen & bathroom facilities. Excellent opportunity for Open for preview September 15th 10 AM-3 PM With 10 & 20-Ton Bridge Cranes user or investor. Free & Clear title. Day of Sale 8 AM-10 AM On-Site Inspections: Wednesdays, Sept. 7 & 24 from 10:00 A.M. to 11:30 A.M. 3385 & 3391 Miller Park Rd 7250 Northfield Rd., AKRON (GREEN) OH PARTNERSHIP DISSOLUTION FORCES IMMEDIATE SALE OFFERED WITH A RESERVE PRICE OF ONLY: Walton Hills, Ohio Near Major Highways OFFICE SHOWROOM & WAREHOUSE $175,000 Trucks, vans, trailers, Com- Bambeck Auctioneers Inc. 1415 E. 222ND ST., EUCLID, OH 44117 mercial lawn-care equipment, shop tools, snow removal 26,000 SF Commercial Property on 2 acres. Solid brick constructed flex building www.bambeck.com comprised of 7,000 SF office/showroom, 12,000 SF warehouse & 7,000 SF mezzanine storage. 20’ clear ceilings, 2 drive-ins, 1 dock, heavy power and 100+ car pkg lot. Terrific opportunity for user or investor. Free & Clear title. INVESTORS!! BUILDERS!! DEVELOPERS!! By Order of Court-Appointed Receiver On-Site Inspections: Wednesdays, Sept. 17 & 24 From 1:00 P.M. To 3:00 P.M. 4.25 ACRES Real Estate Auction 9 AC MADISON SCHOOL BOARD ORDERS IMMEDIATE SALE SUGGESTED IN WESTLAKE Oct. 8 • 11:00 AM On-Site OPENING BID: TWO REDEVELOPMENT SITES 30412 Center Ridge Rd. 45,000 $1,000/AC Thurs., Sept. 18th, 6 PM Sq.Ft. Ofﬁce 10 AC MADISON, LAKE COUNTY, OH 44057 Zoned Multi-family Building Two redevelopment sites that are shovel ready in Madison, OH. 10+ Acres on 2 near Main & River Roads. 9+ Acres off of US Route 20. OUTSTANDING LOT! Acre Site OFFERED WITH A COMMERCIAL DEVELOPMENT SITE RESERVE PRICE OF ONLY: LARGE TUDOR Real Estate Opportunity $25,000 with 5 acres – Moreland Hills 624 Market Ave. N., Canton OH .47 AC 7156 PLEASANT VALLEY RD., PARMA, OH 44130 33095 Chagrin Boulevard Recently Listed At : $1,900,000 Corner commercial lot located at the busy intersection of Pleasant Valley Rd. Friday, Sept. 19th - Selling: Suggested Opening Bid: $850,000 and Ridge Rd. (SR 3) in Parma. Zoned Retail Commercial, the parcel is directly Chattels -10 AM adjacent to Legacy Place apartment complex and Pleasantview Care Center. Real Estate - 12 Noon 3% Broker Participation! OFFERED WITH A Bambeck Auctioneers Inc. RETAIL / MULTI-FAMILY DEV. OPPORTUNITY RESERVE PRICE OF ONLY: Across from Orange Schools www.bambeck.com 9.47 AC $25,000 SHEFFIELD TOWNSHIP, LORAIN COUNTY, OH 44055 4 bdrms, 3-car garage with vehicles 9.47-Acre commercial land site with 500’ of frontage on Oneil Blvd. and directly Wood shop with wood-working equip. across the street from Centre of Sheffield Shopping Center, Apple’s Grocery Owner Directs Immediate Sale Store. Zoned Shopping Center. Free & Clear title. 216-990-1831 1-877-BID-ROSEN Real Estate Auction CORPORATE SELLER ORDERS IMMEDIATE SALE OFFERED WITH A www.BIDROSEN.com Oct.22 • 11:00 AM On-Site RESERVE PRICE OF ONLY: PRIME COMMERCIAL DEV. OPPORTUNITY $200,000 (See Website for terms.) 46051 US RT. 20, OBERLIN, OH 44074 10 Acres zoned commercial at the S/W corner of US RT 20 and RT 58. Strategically positioned across the street from a Walmart Super Center, Oberlin 10 AC Plaza Shopping Center, Pizza Hut, Advance Auto Parts, Lorain County JVC and less than 2 miles from Oberlin College. Terrific opportunity for user or investor. Free & Clear title. Attn.: Users/Developers/Investors Off-Site Due Diligence Seminar for ALL Land Parcels: Thursday, September 18 at 2:00 P.M. at Hanna Chartwell Offices RESIDENTIAL PROPERTIES 2 Business Condominiums OFFERED WITH A 7,800 & 3,900 Sq.Ft. MID-CENTURY MODERN HOME RESERVE PRICE OF ONLY: $150,000 8818-8828 Tyler Blvd., Mentor OH 9621 HOBART RD., WAITE HILL, OH 44094 Bambeck Auctioneers Inc. Designed by Ernst Payer (Renowned Student of Frank Lloyd Wright), this 7,500+ SF home sits on 7+ Acres and features 4 bedrooms, 3 baths, 20’ x 40’ indoor www.bambeck.com swimming pool, 4 car attached garage, beautiful grounds and meadow. Open Houses: Sundays, 10:00 A.M. to 12:00 Noon. September 21 & 28. AUCTION OFFERED WITH A Century Home Built 1860 MAGNIFICENT HUDSON ESTATE HOME RESERVE PRICE OF ONLY: DON’T $325,000 95 S. Franklin St, Chagrin Falls,OH 5700 RESERVE LANE, HUDSON, OH 44236 1.47 Acres, 3,626 sf home, 2nd building 3020 sf FORGET: This spacious,1-owner, custom home 4,768 SF on 13.66 wooded acres. With an apartment on 2nd floor Crain’s Cleveland Business Features include 4 bed, 3 full baths, 1 half bath, oversized Gourmet Kitchen, Auction will be held at 1215 W. 3rd St. on-line @ open front porch that spans the front elevation, screened back porch, huge Cleveland, October 6th at 9am master-suite, attached 3-car garage, brick enclosed courtyard (the “secret CrainsCleveland.com garden”), all-brick elegant barn and more. Built in 1991. For more information Contact 216-407-2622 Open Houses: Sundays, 1:00 P.M. to 3:00 P.M. September 21 & 28 and Saturday 1:00 P.M. to 3:00 P.M. September 20. COMMERCIAL SPACE LAND OFFERED WITH A TRADITIONAL COLONIAL GATES MILLS HOME RESERVE PRICE OF ONLY: $395,000 Location, Location, Location Commercial/ 1030 WEST HILL DR., GATES MILLS, OH 44040 Multifamily Land Perched on the hillside with panoramic vistas, this home is 5,900 SF on 3.107 1681 sq.ft. House converted to office wooded acres. 5 bed, 5 full baths, 1 half bath, large updated Kitchen, 1st floor First floor, basement and 3 upper floor offices. High traffic area, 10 For Sale in Westlake 7.5 ac. living suite for in-laws or nanny’s quarters, game room, walk-out lower level min. to airport, I-480. Redevelopment or move-in ready. Asking Former mobile home park. multi-level deck across rear of property, 3 fireplaces, 3-car attached garage. $155,000.00. Fairview Park. Frontage on two roads. Open Houses: Sundays, 10:00 A.M. to 12:00 Noon, Sept. 21 & 28 and Saturday 10:00 A.M. to 12:00 Noon, September 20. Call 440 667 6102 (440) 871-6400

OFFERED WITH A 59 ACRE EQUESTRIAN ESTATE RESERVE PRICE OF ONLY: $600,000 7139 MULBERRY RD., CHESTERLAND, OH 44026 TO FILL YOUR SPACE, LIST YOUR INDUSTRIAL, Spectacular 58.78 AC with 2 ponds. 4,351 SF updated century home with separate guest quarters. Updated throughout including mechanicals, kitchen COMMERCIAL, RETAIL, OFFICE OR WAREHOUSE SPACE HERE. & bathrooms. 2 car attached garage. Gas well on property generating $12K/Yr. Open Houses: Sundays, 1:00 P.M. to 3:00 P.M. September 21 & 28. Contact Denise Donaldson at (216) 522-1383 216.360.0009CHARTWELLAUCTIONS.COM HANNA CHARTWELL BROKERAGE • CHARTWELL AUCTIONS MICHAEL BERLAND & MAC BIGGAR, OH AUCTIONEERS Classified continued on next page >> 20140915-NEWS--26-NAT-CCI-CL_-- 9/12/2014 3:59 PM Page 1

26 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 15 - 21, 2014 CAVALIERS continued from page 1 offer their opinions, ask questions chip, both strategically (the re-sign- and occasionally complain. ing of Kyrie Irving, the recruitment Stein said the Cavs “are rarely a of James, who helped lure others, topic — a world away from Ohio and the trade for Love) and via the State sports, of course, but also less luck of the draw (another win in the than other pro teams” such as the NBA lottery), has seemed to fall the Columbus Blue Jackets and Crew, Cavs’ way, the franchise shouldn’t along with the Browns, Indians and have many road blocks in its quest Cincinnati Bengals. to carve a much greater footprint. “In those terms,” Stein said, “the Late last month, the Cavs filmed Cavs long have been dead last TV spots that will air in Columbus among professional sports in and Cincinnati. The two commer- Columbus.” cial include big-name personalities The sports editor said it’s difficult from Ohio State and Xavier univer- to say how large of a following the sities, along with Columbus Mayor Cavs have in the state capital, aside Michael B. Coleman and Northeast from knowing “the base will be Ohio native and ESPN NFL analyst larger this year because LeBron is Tom Jackson (a Cincinnati resi- there and they’re a legit con- dent). tender.” The personalities introduce Mo Egger, a Cincinnati native themselves and say they are “a Cav- and ESPN 1530 host, is “a huge alier.” The commercials end with a NBA fan.” That doesn’t help him new spin on a longstanding Cavs during his Cincinnati afternoon ra- motto: “All for one. One for all. All dio program. for Ohio.” “I can’t get any kind of NBA conversation going,” Egger said. Egger said sports radio in Cincin- Anything but ‘like old times’ nati is almost entirely comprised of The Cavs will hold a preseason talk about the Bengals, Reds and game at Xavier’s Cintas Center on college basketball. Oct. 15. Five days later, they’ll play “The (Indiana) Pacers are two at Ohio State’s Schottenstein Cen- hours away, and some of us have ter, continuing a tradition of pre- wondered why the Pacers don’t season contests in Columbus. The market to Cincinnati,” the host preseason date in Cincinnati is the said. “I think they know it’s a lost Cavs’ fifth in as many years, but it cause. It’s a good basketball city, a will be the first at Xavier since 2001 good sports city, but when it comes and the first in the Queen City with to the NBA, nothing. It’s crickets.” James in the wine and gold. The Cavs expect both games to ‘Stay tuned’ sell out, a theme that will continue for all 82 regular-season games in The Cavs hope their marketing 2014-15. campaign, with its “We Are All Cav- “We’ve always had this plat- aliers” slogan and #AllForOhio form,” Bubolz said. “It’s one we’ve hashtag, can help to change some worked at, but now we really have a All numbers likely are near the In 2008-09, James’ second-to- work has a “full distribution” of of that. unique opportunity to take it to the top of the 30-team league. (The last season in his initial tenure with more than 5 million homes — the But it’s the presence of James, next level.” Cavs aren’t permitted to disclose the Cavs, 76% of the team’s individ- maximum number of homes, if who is every bit as valuable off the In many respects, the Cavs al- their website and mobile rankings.) ual ticket sales came from outside every cable and satellite customer court as he is on it, that makes already have. The franchise reached Cavs vice president of communi- the Cleveland direct marketing in its reach subscribed to the tiers most anything possible. its self-imposed cap on season tick- cations Tad Carper, who has been area. Last season, when the Cavs on which Fox Sports Ohio is of- Stein said since James left Cleve- ets hours after James announced with the franchise for almost 15 won 33 games, that number fered. Cavs games currently are dis- land in the summer of 2010, the his return July 11, and Bubolz said years, said “there’s really no com- dropped to 60%. It figures to rise tributed to more than 3 million Dispatch generally covers only a the 92 suites at Quicken Loans Are- parison” between the interest level substantially in 2014-15. homes in Ohio, Pennsylvania, New couple of Cavs games per season — na are already “at capacity” on a in the current star-studded edition “The sense of anticipation for the York, Kentucky, Indiana and West when LeBron returned to The Q “multiyear basis.” of the Cavs and the group formerly Cavs goes well beyond Northeast Virginia, and the network is “always with the Heat and when former The secondary-ticket market, in led by James from 2003-10. Ohio,” team president Len Ko- working to expand within NBA pa- Ohio State standout Jared Sullinger which Cavs owner Dan Gilbert has “That’s one of the questions I get moroski said. “And that’s all good rameters,” Zelasko said. and the Celtics are in town. a considerable stake (via paperless asked repeatedly. ‘Hey, it’s just like for Cleveland and Northeast Ohio, “As Ohio’s team, people see us “In other words, we have not ticketing company Flash Seats), for old times,’ ” Carper said. “No, it’s because that spotlight is going to be everywhere,” Komoroski said. covered a Cavs game because it’s a the team’s games will be among the not. It’s much different. There’s a on Cleveland and Northeast Ohio “We’ve been fortunate to get great Cavs game in quite some time,” NBA’s most active, and the Cavs’ much higher level of engagement. — regionally, nationally and inter- support in markets like Columbus Stein said. “That changes this year, digital properties are thriving. There’s an energy level in general in nationally.” and Cincinnati. What you’re seeing I’m certain.” The Cavs had more than 2 mil- the marketplace, an interest level, right now is that payload just starts Komoroski, the Cavs’ president, to spread and get more intense as lion visitors to their website in Au- that is much greater than it ever Challenges in two cities said the increased attention “moti- gust, a year-over-year increase of was.” we go.” vates us because we know the 505%. The site’s page views jumped With James back and saying he’s Komoroski said the Cavs’ region- Even with the world’s greatest spotlight will be more intense and 405% year-over-year (to more than in for the long haul, the odds of ex- al efforts are boosted by the organi- player, gaining steady footholds in the scrutiny will be more intense, 5.7 million), its unique visitors in- tending that reach throughout the zation’s TV contract with Fox Columbus, and especially Cincin- but that’s what we live for. We’re creased 365% and its video streams state, and to parts of New York and Sports Ohio, which has “one of the nati, isn’t a slam dunk. fortunate to be in that type of situ- were up more than 10-fold. The Pennsylvania, are vastly improved largest” footprints in the NBA. Ray Stein, sports editor of The ation. So I would just say stay Cavs had more than 2.2 million — much like the team’s title Fox Sports Ohio spokeswoman Columbus Dispatch, writes a week- tuned.” mobile views. chances. Kate Zelasko said the regional net- ly mailbag column in which readers Even in Cincinnati. CLASSIFIED BUSINESS SERVICES FOR SALE BUSINESS OPPRTUNITY Expanding? Come to our ware- C. W. JENNINGS INDUSTRIAL EXCHANGE house; by appointment new & Global Expansion Consulting FLYNN used. Pallet racking-Flo Rack- CABINETS ESTABLISHED Construction • Acquisitions ENVIRONMENTAL Shelving-Conveyor-Mezza- KITCHEN & BATH DISTRIBUTOR nines. We install; we buy and Exporting • Financing UST REMOVALS • REMEDIATION Locally Made Looking to expand to Cleve DUE DILIGENCE INVESTIGATIONS tear down. Looking for scissor & fork lifts? Stys Inc. ProMark Cabinets area. Seeking 100-500k. (855) 707-1944 (800) 690-9409 216 641 7897- [email protected] (216) 453-3654 1-3 yr term. 12-18% return 440-759-7711 20140915-NEWS--27-NAT-CCI-CL_-- 9/12/2014 2:28 PM Page 1

SEPTEMBER 15 - 21, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 27 REPORTER’S NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Bradley Building, a Warehouse The fruit of his labor SEPTEMBER 8 - 14 District landmark, is on block is starting to pay off Two histories define downtown Cleve- About six years of work is starting to pay The big story: A proposal surfaced to remake land’s Warehouse District. One is from the off for entrepreneur Ethan Holmes. the 925 Building, better known as the former 19th century when it became home to a gar- The 21-year-old Hiram College junior first Huntington Building at East Ninth Street and ment industry that served the nation; the asked his grandfather to show him how to Euclid Avenue, in a $231 million project. Besides other is when it became a site for artist’s stu- make applesauce when he was just 15. He’s continuing to offer some office and retail space, dios and loft living that helped spark down- been working to get his all-natural business the largely empty office building would go town’s revival. off the ground ever since. through an adaptive reuse that would incorpo- The Bradley Building, 1220 W. Sixth St., This summer, that hard work started to rate apartments, condominiums and a boutique spans both, and it has just been listed for bear fruit. Holmes entered a couple of com- hotel. Plans were described in a resolution ap- sale for $10.77 million with Colliers Interna- petitions earlier this year, including the proved by Cleveland City Council. The resolu- tional. Charter One Foundation Student Business tion signals council’s support for an application The building, which dates from 1886 and Idea Competition, in which he won second by Vintage Development Group, an affiliate of was the work of famed Cleveland architects place. Holmes used the money he won to in- Marous Brothers Construction, to receive a $25 Cudell & Richardson, now consists of offices vest in labeling, product testing and some million state historic preservation tax credit to CONTRIBUTED PHOTO and apartments within its red-clay exterior time at the Cleveland Culinary Launch & assist the project. The Bradley Building in the Warehouse District and behind its huge arched windows. Kitchen. He turned to crowdfunding plat- has been listed for sale for $10.77 million with With the listing shared by Colliers brokers form Indiegogo to raise the money to make Change is coming: DDR Colliers International. Gary Cooper and Tom Gustafson, the mar- his first batch, raising $2,274 in a month. Corp. of Beachwood said keting reflects its mixed-use nature as Coop- eight-story building to Northeast Ohio Early last month, Holmes said he made CEO Daniel B. Hurwitz and er specializes in apartments and Gustafson apartment owners and to a list of owners 400 jars of “Holmes Mouthwatering Apple- the company’s board of di- in offices. The building has 32 apartments, nationally who own properties with federal sauce” in two days with the help of family rectors agreed not to renew 40,000 square feet of offices and 23,000 landmark designations. and friends. He said he had about 100 pre- his employment agreement, square feet of first-floor retail space. “This building was a model for how to orders, and he’s started reaching out to lo- which expires Dec. 31, 2015. Gustafson said the building should attract adapt warehouse buildings as mixed-use cal retailers to carry his product. Holmes DDR, a shopping center-fo- a variety of investors because it offers imme- property” Cooper said of the Bradley, often said a storefront for students at Hiram has Hurwitz cused real estate investment diate cash flow and has been well-main- described in local histories as the first such agreed to carry his products — he added trust, said “it is anticipated” tained by its current owners. rehab between Chicago and New York City’s that he dropped off the jars in early Septem- that Hurwitz, 50, will remain CEO through 2015 “It doesn’t require renovation like the Na- SoHo area. ber — as well as a store in Wooster. “to facilitate a smooth leadership transition as tional Terminal Building,” Gustafson said of Cooper said the building’s long-term Holmes said that he wants to work to ex- the company continues to execute its strategic the building on West Ninth Street just sold to owners, Bradley Associates, have decided it pand the flavors and product offerings at his plan.” Terrance R. Ahern, DDR’s board chair- a new owner. “It also does not entail the kind is a good time to market the property. company, Holmes Made Foods LLC. man, said the company will engage an executive of risk entailed by K&D Group’s recent pur- However, this deal will require more than Though he’s young, he wants other teens search firm and consider internal and external chase of the Leader Building, which will later simply finding someone to cough up cash. and young adults who want to start a busi- candidates to succeed Hurwitz. be converted to apartments from offices. It Cooper said the current owners seek a buy- ness to know they don’t have to wait to fol- won’t require substantial renovation and is low their dreams. It’s important to “have Roots entwined: Boards of the Holden Ar- er as dedicated as themselves to serving as a not a raw conversion from office to lofts.” that confidence to move forward,” he said. boretum and the Cleveland Botanical Garden “steward” for the landmark property. Cooper said Colliers plans to market the — Rachel Abbey McCafferty voted to begin the process of joining together. — Stan Bullard The arboretum and the garden announced in June they were pursuing a merger. The new entity will become the 13th-largest public garden in the country. Clement W. Hamilton, who has led the arboretum since 2008, will become president MILESTONE BEST OF BLOGS and CEO of the integrated organizations. Natal- Excerpts from recent blog entries “Ohio may be poised for better eco- ie Ronayne, who has led the botanical garden on CrainsCleveland.com. nomic times in the near future, with shale since 2007, will become executive vice president. energy discoveries and a return of manufacturing to the U.S. … Buying up the block: Morgan Management, The state of enterprise (But in this ranking) Ohio had mostly the Rochester, N.Y.-based owner of the Bingham There are 12 Ohio companies on Black middle of the road rankings. The July un- Apartments in Cleveland’s Warehouse District, Enterprise magazine’s list of the nation’s employment rate was 5.7%, a little below bought the next-door National Terminal Ware- 100 largest black-owned businesses. the national rate of 6.2%. house Apartments for $15.5 million. With 250 The top-ranked Ohio company was Similarly, average annual wages were units in an apartment building installed in 1996 Dublin-based manufacturer Modular As- in the middle of the pack at $44,667, not in an old warehouse building, National Terminal sembly Innovations, at No. 4 nationwide, was the largest single conversion of its time and too far below the national average of with $1.2 billion in revenue in 2013. $49,804. “the grandfather of what’s going on today,” said The next three Ohio companies on the Dan Burkons, a Marcus & Millichap vice presi- However, what held Ohio back was the list hail from Northeast Ohio: Lordstown- dent who represented Housing Horizons, an af- COMPANY: Richardson Design, July jobs report: Ohio lost 12,400 jobs in based restaurant supplier The Anderson- filiate of Irving, Texas-based Kimberly-Clark Co., July, the worst performance in the coun- Cleveland DuBose Co. at No. 6 with $546 million in in the deal. try.” OCCASION: Its 20th anniversary revenue last year; Norwalk-based New Ohio trailed most of its Great Lakes Horizons Baking Co. at No. 35 with $95 Up in the air: Timken Co. of Canton is taking neighbors, including Indiana (No. 33), “I’m still my own boss and am still doing what million in revenue; and Cleveland-based actions to improve the performance of its aero- Pennsylvania (No. 31), Michigan (No. 17) I love to do.” Ozanne Construction Co. at No. 43 with space business that will result in non-cash, pre- and Illinois (No. 12) So says Scott Richardson, a Cleveland Insti- tax charges of $110 million to $120 million in the $87 million in revenue. tute of Art graduate who launched Richardson third quarter. Among the planned actions, Remaining Ohio companies on the list A grande experiment Timken said it will “eliminate its aerospace seg- Design in January 1994, just a couple years out are from the Cincinnati, Columbus and ment leadership positions and integrate aero- of art school. Dayton areas. A Starbucks test in Cleveland might be space activities” under the direction of executive In a note to clients, he wrote, “I initially had Black Enterprise says the country’s going national. vice president Chris Coughlin. The company dreams of just being my own boss and doing largest black-owned business is St. Louis- Miami New Times noted that the coffee also plans to close its aerospace engine overhaul what I love to do. So I set up my drafting board based IT products and services company giant for a few months has been using 400 business, based in Mesa, Ariz., by the end of the in the spare bedroom of my house and began World Wide Technology Inc., with $6.4 stores in Cleveland and Portland, Ore., to year; “evaluate strategic alternatives” for its aero- drawing and rendering with the markers I had left billion in annual revenue. test coconut milk as an alternative to reg- space parts business, also in Mesa; and close its from my college days. My initial marketing was ular milk for non-dairy drinkers. aerospace bearing facility in Wolverhampton, done through printed post cards which were Tough month The story’s writer, Hannah Sentenac, United Kingdom. mass mailed to targeted prospects.” said a Miami barista told her that coconut Marketing today is done through e-newsletters BusinessInsider.com ranked the cur- milk “is officially on its way” to Starbucks Fair share: A pay-as-you-go community bike- and social media, and the firm’s design process rent state of state economies, and Ohio is in other markets. sharing pilot launched Sept. 10, with a handful of “has evolved to include the latest computer mod- not exactly a stellar performer. An email to Starbucks’ media relations participating businesses in and around Ohio City eling and rendering technologies,” he wrote. The website ranked each state on sev- team about a national rollout got this spearheading the initiative and hoping more ur- Richardson Design now has an eight-person en economic measures: the July unem- non-denial: “Starbucks is aware that ban organizations come along for the ride. The team, and it occupies a 3,000-square-foot stu- ployment rate; the change in non-farm many of our customers prefer their fa- Cleveland Bike Share program allows riders to dio at 2570 Superior Ave. payroll jobs from June to July 2014; the vorite beverages to be prepared with non- rent bikes for $3 per hour at designated stations, The firm’s work includes retail, corporate inte- 2013 GDP per capita; the 2012 per capita dairy milk and soy alternatives. Starbucks and return them to other participating business- riors, exhibitions and showrooms, and restau- consumption; the 2013 average annual is currently testing coconut milk at ap- es once their ride is complete. Zagster, a Massa- rants. In the last category, it has done the design wage; the 2013 exports per capita; and the proximately 400 stores in Cleveland and chusetts-based private bike share provider for work for Michael Symon’s B Spot chain, Great 2012 government expenditures. Oregon for a limited time. We’re looking companies, hotels and universities, designs, Lakes Brewing Co. and the renovated food area Ohio was a mediocre No. 35 by these forward to learning more, but do not have builds, operates and maintains the bike-share at Cleveland Browns Stadium. measures, additional information to share on future system. You can view images of the firm’s work at Here’s how BusinessInsider.com de- availability of non-dairy milk and soy al- richardsondesign.com/portfolio. scribed the Buckeye State’s economy: ternatives within our stores nationally.” 20140915-NEWS--28-NAT-CCI-CL_-- 9/12/2014 1:05 PM Page 1 NORTHEAST OHIO’S TOP FINANCIAL RECOGNITION AWARD 2014 NOMINEES

t+JN"OTCFSSZ]5IF)PMEFO"SCPSFUVN t.BSL"TUPSJOP]$ISPNBøP5FDIOPMPHJFT$PSQ t+JN$BSOPWBMF]+VETPO4FSWJDFT *OD t3PO$PJMM]0&$POOFDUJPO --$ PRESENTED BY t.JLF%FB]&RVJUZ5SVTU t#SJBO%FSSJDL]4VNNB)FBMUI4ZTUFN t4DPUU(BJOFS]$MFWFMBOE)FJHIUT6OJWFSTJUZ)FJHIUT$JUZ4DIPPMT t#SJBO(FINBO]$MFWFMBOE/FJHICPSIPPE1SPHSFTT t#FUUZ(PPENBO]7PDBUJPOBM(VJEBODF4FSWJDFT t,BUIZ)FøJO]5IF"MCFSU.)JHMFZ$P t4FBO)FOOFTTZ]5IF4IFSXJO8JMMJBNT$PNQBOZ t+Fò)PPE]"MMPZ&OHJOFFSJOH$P t4FBO+PZDF]4UBO)ZXFU)BMM(BSEFOT t$BSSJF,SFOJDLZ]$MFWFMBOE1VCMJD-JCSBSZ t#SFOU-FTMJF]1PSUPG$MFWFMBOE t+PO1.BSUFO]1BSLFS)BOOJöO t.BSZ.D%BOJFMT5IPCVSO]8FTUFSO3FTFSWF)JTUPSJDBM4PDJFUZ t5JN.D/FJMM]#FUUDIFS*OEVTUSJFT *OD t3BZ.VFMMFS].FEJDBM.VUVBMPG0IJP t#JMM3VóOH]4IBLFS"VUP-FBTF *OD t+PIO3VTOBD[ZL]4U7JODFOU$IBSJUZ.FEJDBM$FOUFS t3JDL4NJUI]'JSTU'FEFSBM-BLFXPPE t$ZOEJ4PCF]".3&4$0 *OD t5PEE8FMLJ]$MFWFMBOE.VTFVNPG/BUVSBM)JTUPSZ TICKETS ON SALE NOW October 23, 2014 | 5:30-8:30PM | Cleveland Convention Center CrainsCleveland.com/CFO

CO-PRESENTED BY COCKTAIL SPONSOR SUPPORTED BY MEDIA PARTNER COMMUNITY IN PARTNERSHIP WITH PARTNER