Posts Tagged ‘TN’
Thursday, October 27th, 2011
 Chattanooga CHATTANOGA, TN – Alcatel-Lucent is investing $100,000 in the “The Gig PrizeTM,” a Chattanooga-based initiative to foster the development of gigabit per second Internet applications and business ventures.
“Last year, Chattanooga became America’s first and only city to complete a community-wide network capable of delivering up to 1 gigabit per second Internet speeds to every home and business in EPB’s 600 square mile service area,” said Robert Vrij, president of Alcatel-Lucent’s Americas Region.
“We’re proud to partner with Chattanooga as this extraordinary city establishes a groundbreaking model for demonstrating the direct linkage between investment in telecommunications infrastructure and economic growth.”
Vrij made his announcement as part of his keynote address during the Chattanooga Area Chamber of Commerce’s Spirit of Innovation luncheon where community leaders announced an initiative to position Chattanooga as the Gig CityTM and unveiled the Gig PrizeTM.
The Gig PrizeTM is a competition in which students and entrepreneurs will create and test next generation Internet applications and launch businesses using Chattanooga’s blazing fast Internet.
“Chattanooga offers forward thinking entrepreneurs a huge head-start in leading the next generation of Internet commerce,” said Tom Edd Wilson, president and CEO of the Chattanooga Area Chamber of Commerce. “The Gig PrizeTM will provide the support and connections necessary to develop, prove and fund these paradigm shifting business models.”
Additional information about The Gig PrizeTM will be released in coming weeks. Interested students and entrepreneurs can learn more at www.chattanoogagig.com where challenge rules and details will be available soon.
Tags: 1 gig community network, Alcatel-Lucent, Chattanooga, Gig PrizeTM, priz, prize for Internet app or Internet business, TN
Posted in entrepreneurship, Events, Internet/New Media, IT, Other SE, Tennessee | Comments Off
Monday, August 1st, 2011
 AT&T says that starting Oct. 1, heavy data users may see downstream connections slow if they end up in the top 5 percent in use during any billing cycle.
The change will only affect unlimited data plan users. Data use on Wi-Fi won’t count toward the total.
The company says it is also investing in continually upgrading its network and attempting to acquire more network capacity. But AT&T says throttling heavy data users and its other efforts will not meet the data crunch challenge.
“Nothing short of completing the T-Mobile merger will provide additional spectrum capacity to address these near-term challenges,” the company said in a statement, speaking of the $39 billion merger announced in March. The deal faces some opposition from Washington legislators and competitors.
Symantec names Steve Bennet chair
Symantec Corp. (NASDAQ: SYMC) says its board intends to elect independent board member Steve Bennett to the position of chairman. Bennett will succeed John W. Thompson, former Symantec CEO and chairman. Thompson will continue to serve the remainder of his term, but has chosen not to stand for reelection in order to pursue other business and personal interests. Bennett will assume the Chairman position effective October 25, 2011, at the conclusion of Thompson’s term and immediately following Symantec’s 2011 annual meeting of stockholders.
Facebook offers bug bounty
 Facebook says it will pay hackers to uncover pr0blems on its website as long as they report it to Facebook’s security team first.
The company’s Web Bounty program, similar to efforts from Google and Mozilla, will pay a base rate of $500 to discover security problems such as cross site scripting flaws and will pay even more to uncover even more serious security problems.
Security researchers can sign up at Facebook’s Whitehat Hacking Portal.
Austin-Texas-based Kimbia lands $4M for online fundraising tech
Kimbia Inc.it raised more than $4 million in a Series 2 round of funding led by S3 Ventures to expand industry adoption of its Web-based fundraising and event management software. Kimbia’s innovative platform is designed to power the next generation of online fundraisers, event organizers and social advocates. Kimbia donation and registration forms are fully customizable through a Web-based control panel and are deployable anywhere on the Web via fully-secure form widgets — effectively allowing any Web page, blog or mobile device to accept credit card donations and/or registration fees.
Nashville-based EDO Interactive grabs $20M funding
EDO Interactive, which sells a digital deals and incentives platform, has reaise $20 million in a B round led by Baird Venture Partners and VantagePoint Capital Partners.
Hearsay Social raises $18M to connect local branches and reps
Hearsay Social, a San Francisco-based firm selling social media SaaS solutions for local branches and representatives of brands, raise $18 million from New Enterprise Associates with participation by existing investor Sequoia Capital.
BigCommerce nabs $12.6M for ecommerce software
BigCommerce, based in Austin, Texas, which sells ecommerce software for SME’s, has raised $12.6 million in a B round led by Madrone Capital. Sigma Partners participated in the round.
Tags: AT&T throttles heavy data use, Austin, BigCommerce, broadband data use, Facebook bug bounty, Facebook Whitehat Hacking Portal, financings, Hearsay Social, John W. Thompson, Kimba, Nashville, online charity giving, San Francisco, Steve Bennet, Symantec names chair, Texas, TN
Posted in Facebook, Internet/New Media, IT, Microsoft, Mobile, Money, social media, TechJobs, Telecommunications | Comments Off
Thursday, May 5th, 2011
 For the seventh year in a row, CEOs rate Texas as the #1 state in which to do business and California as the worst. North Carolina maintained its #2 rank, while Florida rose three positions to the #3 spot. Tennessee fell one slot from last year to #4 while Georgia climbed two positions to claim the #5 rank.
Chief Executive magazine’s annual “Best & Worst States” survey takes the pulse of CEOs on business conditions around the nation. For the 2011 survey, 550 CEOs from across the country evaluated the states on a broad range of issues, including regulations, tax policies, workforce quality, education resources, quality of living and infrastructure.
“A handful of states have made business-friendly policies a priority,” says J.P. Donlon, Editor-in-Chief ofChief Executive magazine and ChiefExecutive.net. “These forward-thinking states are the exception rather than the rule and include Utah, Arizona, Florida, Tennessee, Louisiana, Texas and Oklahoma.”
CEOs voted California as the worst state in 2011, with New York, Illinois, New Jersey and Michiganrounding out the bottom five.
“ABC — Anywhere But California,” said T.J. Rodgers, CEO of Cypress Semiconductor, a $668 million chip maker headquartered in San Jose, California, and with plants in 10 countries. “It’s expensive, it’s hostile to business, and environmental regulations are more of a drag on business than protecting the environment.” Cypress Semiconductor’s headcount in California peaked at 1,500. It’s now down to about 600.
With finances in shambles due to the weak economy, many states have been increasing tax rates.
“Today’s ‘soak the rich’ mentality hits business leaders especially hard,” says Marshall Cooper, CEO ofChief Executive magazine and ChiefExecutive.net. “CEOs and entrepreneurs vote with their feet — and also pack up jobs and investment with them when they leave.”
It’s interesting that North Carolina, which has one of the highest tax rates in the Southeast, maintains its number two position, largely due to the talent available through its eduction system and its quality of life. It’s education system is about to take a huge cut as the state wrestles with the same type of budget deficit that plagues other states.
TechJournal South is a TechMedia company. TechMedia presents the annual conferences:
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Internet Summit: www.internetsummit.com
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Georgia’s rise is also interesting. Another recent report noted that Georgia is right at the top when it comes to startup activitity, with more than 500 businesses a month launching.
Tags: Best States for Business, Chief Executive Magazine, FL, GA, NC, states ranked, Texas, TN
Posted in Carolinas, Florida, Georgia, North Carolina, Other SE, Tennessee | Comments Off
Tuesday, April 5th, 2011
 SAN DIEGO–Want to live a longer life? Move to Salt Lake City, the DC-Balitmore area, Raleigh-Durham-Chapel Hill, San Francisco, or Austin. On the other hand, Knoxville and Nashville, TN, Greensboro/Winston-Salem, and Tampa and Jacksonville, FL, may make you old before your time. So says and new report by RealAge.
Southeast and western cities are among the top ten on RealAge’s list of the “youngest” cities in America—metropolitan areas with such healthy lifestyles that on average their residents are physically at least two years younger than their chronological age, and many are years younger than that. RealAge analyzed data from the largest 50 metropolitan areas to compile the rankings.
A passion for fitness and a loathing for smoking are key factors in Salt Lake City’s number one ranking. At the other extreme, residents of Knoxville, Greensboro/Winston-Salem, and Nashville are aging faster than they should. (Get an infographic of the 10 youngest and oldest cities here.)
What are the 10 metro areas where you have the best odds of staying young?
1. Salt Lake City, Utah
2. San Francisco/Oakland/San Jose, Calif.
3. Austin, Texas
4. Denver, Colo.
5. Boston, Mass.
6. Washington, DC/Baltimore, Md.
7. San Diego, Calif.
8. Raleigh-Durham/Chapel Hill, N.C.
9. Minneapolis/St. Paul, Minn.
10. Seattle/Tacoma/Bremerton, Wash.
Which metro areas are likely to make you old before your time?
1. Knoxville, Tenn.
2. Greensboro/Winston-Salem/High Point, N.C.
3. Nashville, Tenn.
4. Saginaw/Bay City/Midland, Mich.
5. Cincinnati, Ohio
6. Tampa/St. Petersburg, Fla.
7. Oklahoma City, Okla.
8. Las Vegas, Nev.
9. Jacksonville, Fla.
10. Tulsa, Okla.
“Each city’s ranking is more than just a number,” says Keith Roach, MD, Chief Medical Officer of RealAge and a co-creator of its test. “It’s a unique assessment of the healthy lifestyles, or lack of them, in each metro area—of how people live there, what they’re doing right and what they need to change. If you live in one of the 10 oldest cities, take this as the alarm on your body’s aging clock going off! It’s never too late for a fresh start.”
Note that half of the 10 youngest cities are in the Western U.S., from Denver to Seattle.
“Maybe it’s the weather, maybe it’s the mountains, but Western cities have adopted active lifestyles that can slow down the aging process,” says Dr. Roach.
Behind the Rankings
To compile the rankings, RealAge analyzed data for America’s 50 largest metropolitan areas generated by its landmark online assessment, the RealAge Test, taken by over 27 million people. This is the first time the company has analyzed aggregated results on a city-by-city basis.
A random sample of 1,000 RealAge members was drawn from each city. The sample data was adjusted for age differences, so a metropolitan area that’s a magnet for retirees wasn’t penalized, and a city jammed with university students didn’t benefit.
The Test uses a powerful algorithm that combines the latest scientific studies with lifestyle, genetics, and medical history to calculate your RealAge—how old your body thinks you are.
What Makes a City Younger or Older
While multiple lifestyle factors are involved, here are four big ones that help people in Boston (the 5th youngest city), for example, stay younger and healthier than those in Cincinnati (the 5th oldest):
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Getting the right amount of sleep. Six of the 10 youngest cities are among those with stellar sleep habits. And (surprise) New York isn’t the city that never sleeps—the Big Apple ranks second in ZZZ’s; Austin is first. Sleeping six to nine hours a night can make your RealAge as much as 3 years younger. |
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Stubbing out cigarettes for good. Four of the five fastest-aging cities have the highest percentage of smokers. |
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Not sitting around. Six of the 10 youngest cities are among the most physically active in the country. A daily 30-minute walk can make your RealAge up to 3.5 years younger. |
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Controlling your blood pressure. Five of the 10 fastest-aging cities—Knoxville, Cincinnati, Oklahoma City, Jacksonville, and Tulsa—are among the worst for high blood pressure. Nothing ages you faster. Who has the lowest BP? Residents of Minneapolis-St. Paul, the 9th youngest city. |
TechJournal South is a TechMedia company. TechMedia presents the annual conferences:
SoutheastVentureConference: www.seventure.org
Internet Summit: www.internetsummit.com
Digital East: www.digitaleast.com
Digital Summit: www.digitalsummit.com
Tags: Austin TX, Baltimore, Cincinnati, CO, DC, Denver, FL, Greensboro, High Point, Jacksonville, Knoxville, Las Vegas, MD, Nashville, NV, OH, OK, Oklahoma City, Raleigh-Durham-Chapel Hill, Realage.com, San Diego, San Fransciso, Seattle, St. Petersburg, Tampa, TN, Tulsa, Winston Salem
Posted in Carolinas, Florida, Maryland, North Carolina, Other SE, Potomac, Studies, surveys, reports, Tennessee, Washington, DC | Comments Off
Tuesday, March 29th, 2011
 ATLANTA – Ingenious Med Inc., which sells a practice performance management and charge capture platform, has received $3.25 million in funding from Council Ventures of Nashville, TN. Council Ventures joins existing investor Buckhead Investment Partners of Atlanta.
A portion of the investment will be used to fund Ingenious Med’s continued growth and a portion of the proceeds will be used to re-capitalize existing shareholders. Ingenious Med has nearly doubled in terms of revenue, clients and personnel each of the past two years.
Founded in 1999 by a group of practicing physicians, Ingenious Med is an award-winning mobile platform that automates the activities of physicians when they are away from their office, whether they are rounding at a hospital, an outpatient clinic, a nursing home or even at home.
Ingenious Med automates the revenue and charge capture processes for over 9,000 users in more than 800 healthcare facilities across the United States.
TechJournal South is a TechMedia company. TechMedia presents the annual conferences:
SoutheastVentureConference: www.seventure.org
Internet Summit: www.internetsummit.com
Digital East: www.digitaleast.com
Digital Summit: www.digitalsummit.com
Tags: Atlanta, Buckhead Investment Partners, Council Ventures, financing, healthcare charge capture platform, Ingenious Med, IT, mobile, Nashville, TN, venture capital
Posted in Georgia, Healthcare, Internet/New Media, IT | Comments Off
Tuesday, March 15th, 2011
 Technology is a two-edged sword, as Japan’s continuing troubles at its nuclear plants shows, but technology will also likely be on the forefront of helping the nation recover.
Time Warner Cable, Verizon, Sprint and AT&T, have all made calls and texting to Japan free for a time.
Time Warner said, “As a result of the events that took place on March 11, 2011, we have seen an increase in the number of calls made by our customers to Japan. All direct dial calls placed using our Digital Home Phone service to Japan will be free through April 15, 2011. This program includes both residential Digital Home Phone and Business Class Phone customers and will be retroactive for all calls starting on March 11, 2011.”
Time Warner is also offering Carolinas cable subscribers access to a 24/7 channel broadcasting continuous news about Japan.
In response to the earthquake in Japan, Time Warner Cable is offering a free preview of TV Japan to its digital cable customers in the Carolinas. Digital customers will have access to TV Japan’s earthquake coverage at no additional cost beginning today through March 25th on channel 880. TV Japan is a 24/7 Japanese broadcasting channel.
Google’s Person Finder tool
Google has created a person finder tool to help contact relatives, friends, or others in Japan.
Internet health
Keynote Systems, which provides an Internet Health report, says, “While public sites in Japan continue to do very well in download speed and site reliability, the hard-working folks behind the scenes have had plenty to contend with.
The top backbone provider in Japan, NTT, has seen some isolated performance degradation, both announced on their network status page and captured by Keynote’s InternetHealthReport.com site.
Radiation protection
A Tennessee company, RxBio,says that its lead product, Rx100, a potent radioprotectant as well as radiomitigator, protects against lethal, whole-body radiation when administered before, during, or up to 72 hours after exposure. We’re attempting to find out if the company has any way to help people who may be exposed to dangerous levels of radiation due to the nuclear plant problems.
Donations:
Verizon Wireless customers can make a $10 donation to their choice of ten non-profit organizations responding to the earthquake and subsequent tsunami by simply sending a text message – simply text the specific word to the organization’s designated short code:
- ADRA Relief: text SUPPORT to 85944
- American Red Cross Relief: text REDCROSS to 90999
- Convoy of Hope: text TSUNAMI or SUNAMI to 50555
- GlobalGiving: text JAPAN to 50555
- International Medical Corps: text MED to 80888
- Mercy Corps: text MERCY to 25383
- Salvation Army: text JAPAN to 80888
- Save the Children Federation, Inc.: text JAPAN or TSUNAMI to 20222
- World Relief Corp. of National Association of Evangelicals: text WAVE to 50555
- World Vision, Inc.: text 4JAPAN or 4TSUNAMI to 20222
Verizon Wireless always waives text-messaging fees for disaster relief, and 100 percent of each $10 donation goes to the relief organization. For Verizon Wireless customers who pay monthly bills, the $10 donations will appear in customers’ next regular monthly bill. For customers using the company’s prepaid services, the $10 donations will be taken from customers’ prepaid balance.
We’ll attempt to update this post with additional resources and links as we find them.
Electronics supply chain effects
Mashable notes that Japan’s factories are a lifeline for electronics companies globally, with 20 percent of semiconductors and 40 percent of all flash memory chips are made there.
It reports that supply chain issues following the disaster are likely.
TechJournal South is a TechMedia company. TechMedia presents the annual conferences:
SoutheastVentureConference: www.seventure.org
Internet Summit: www.internetsummit.com
Digital East: www.digitaleast.com
Digital Summit: www.digitalsummit.com
Tags: AT&T, donations to help Japan, Internet health, Keystone Systems, RxBio, Tech response to Japan earthquake, Time Warner Cable, TN, tsunami, Verizon Wireless
Posted in Events, Healthcare, Internet/New Media, Mobile, Telecommunications | Comments Off
Tuesday, March 15th, 2011
 Atlanta ATLANTA – Georgia and Nevada tied for the top spot for the highest rate of entrepreneurial activity in 2010, according to a report by The Kauffman Foundation. Both came in at a .51 percent rank, meaning 510 people per 100,000 created businesses each month during the year in the two states.
We have noted in numerous stories that the Atlanta entrepreneurial ecosystem has ramped up noticeably over the last year, with startup focused groups and events popping up almost monthly.
Tennessee’s high .41 rank and Florida’s at .40, both first tier performances topping North Carolina’s .35, were a bit surprising, although Tennessee, like Georgia, has seen increasing private and public efforts to boost entrepreneurial activity.
Southeast ranks
In the Southeast, North Carolina weighed in at .35 percent, putting in the second highest tier of entrepreneurial activity. South Carolina posted .23 percent, Florida .40, Virginia and Maryland at .24, Tennessee at a high .41 and Kentucky at .29. See: Entrepreneurial Activity by State.
The Kauffman Foundation report, however, points out that “While the economy and its high unemployment rates may have pressed more individuals into business ownership, most of them are going it alone, rather than starting companies that employ others.”
Nationally, according to the “Kauffman Index of Entrepreneurial Activity,” a leading indicator of new business creation in the United States, 0.34 percent of American adults created a business per month in 2010, or 565,000 new businesses, a rate that remained consistent with 2009 and represents the highest level of entrepreneurship over the past decade and a half.
In contrast, however, the quarterly employer firm rate has dropped from 0.13 percent in 2007 to 0.10 percent in 2010.
Too many founders go it alone
“Since it began, the recession has triggered annual declines in the rate of employer enterprise births,” said Carl Schramm, president and CEO of the Kauffman Foundation.
“Far too many founders are choosing jobless entrepreneurship, preferring to remain self-employed or to avoid assuming the economic responsibility of hiring employees. This trend, if it continues, could have both short- and long-term impacts on economic growth and job creation.”
Capturing new business owners in their first month of significant business activity, the Kauffman Index of Entrepreneurial Activityprovides the earliest documentation of new-business development across the country.
The percentage of the adult, non-business-owner population that starts a business each month is measured using data from the monthly Current Population Survey (CPS), conducted by the U.S. Bureau of the Census and the Bureau of Labor Statistics.
Demographic breakdowns
In addition to this overall rate of entrepreneurial activity, the Kauffman Index presents separate estimates for specific demographic groups, states and select metropolitan statistical areas (MSAs). It provides the only national measure of business creation by specific demographic groups.
activity increase between 2009 and 2010. The Latino business-creation rate rose from 0.46 percent in 2009 to 0.56 percent in 2010, the highest rate over the 15 years of Index data. The Asian entrepreneurial activity rate increased from 0.31 percent in 2009 to 0.37 percent in 2010, also the highest rate in the past decade and a half. Both African-Americans and non-Latino whites, on the other hand, experienced declines in entrepreneurial activity rates.
Entrepreneurship growth was highest among 35- to 44-year-olds, rising from 0.35 in 2008 to 0.40 in 2009. The oldest age group in the study (55-64 years) also experienced a large increase in business-creation rates from 2008 to 2009, contributing to a two-year upward trend to 0.40.
Among states, Nevada and Georgia had the highest entrepreneurial activity rates, with 510 per 100,000 adults creating businesses each month. Rounding out the top five highest rates were California (470 per 100,000 adults), Louisiana (460 per 100,000 adults) and Colorado, with 450 businesses started per 100,000 adults.
The five states with the lowest rates of entrepreneurial activity were West Virginia (170 per 100,000 adults), Pennsylvania (180 per 100,000 adults), Wisconsin (180 per 100,000 adults), South Dakota (190 per 100,000 adults) and Indiana (190 per 100,000 adults).
“Regional patterns have a significant effect on entrepreneurial activity rates,” said Robert W. Fairlie, the studys author and director of the masters program in applied economics and finance at the University of California, Santa Cruz. “From 2009 to 2010, entrepreneurial activity rates increased in the West, further widening the gap between the West and other regions. Rates in the South remained steady, but declined in the Northeast and Midwest.”
Other key findings for 2010 include:
- The immigrant rate of entrepreneurial activity increased substantially – from 0.51 percent in 2009 to 0.62 percent in 2010 – and declined slightly for the native-born. This increase expanded the large positive gap that already existed between immigrant and native-born entrepreneurial activity rates.
- A growing immigrant population and rising entrepreneurship rate contributed to a rise in the share of new entrepreneurs that are immigrant, from 13.4 percent in 1996 to 29.5 percent in 2010.
- Entrepreneurial activity increased slightly for men and decreased slightly for women. For men, the entrepreneurial activity rate increased from 0.43 percent in 2009 to 0.44 percent in 2010. The female entrepreneurship rate decreased from 0.25 percent to 0.24 percent.
- The African-American entrepreneurial activity rate decreased from 0.27 percent in 2009 to 0.24 percent in 2010. The white entrepreneurial activity rate decreased from 0.33 percent to 0.31 percent.
- The entrepreneurship index was highest among the least-educated group, moving from 0.49 percent in 2009 to 0.59 percent in 2010, suggesting an increased number of people entering entrepreneurship out of necessity. The largest decrease in entrepreneurial activity occurred for high school graduates.
- Among the United States fifteen largest metropolitan statistical areas, Los Angeles had the highest entrepreneurial rate (0.62 percent) in 2010. Philadelphia had the lowest rate (0.15 percent)
Trend Data
Demographic Data
TechJournal South is a TechMedia company. TechMedia presents the annual conferences:
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Digital East: www.digitaleast.com
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Tags: Georgia, Kauffman Foundation Index of Entrepreneurial Actiivty, MD, NC, SC, TN, VA
Posted in Economic Development, Studies, surveys, reports, Uncategorized | Comments Off
Monday, March 14th, 2011
 NASHVILLE, TN – Entrepreneurs have until Friday, March 18, to apply for the 14-week Nashville JumpStart Foundry program that offers a $15,000 stipend, coaching and other resources. Applicants do not need to hail from Nashville or even Tennessee.
JumpStart becomes a “co-founder” of the startups it helps launch and takes a 6 percent equity stake in the companies in return for its services.
Solidus Company, an investment firm with four funds, started the JumpStart program in 2010. It’s Memphis-based sister program, Seed Hatchery, received more than 60 applicants, according to Milt Capp’s Venture Nashville.
The online application form asks entrepreneurs to describe how their idea or company is different, who its competitors may be, what it will do or make, what previous web projects members of the company team may have created, and how the startup will make money, among other things.
Those evaluating the applications include some of the 31 JumpStart Angels, the Nashville Capital Network, and the Angel Capital Group.
We had trouble accessing the JumpstartFoundry.com website Monday morning.
TechJournal South is a TechMedia company. TechMedia presents the annual conferences:
SoutheastVentureConference: www.seventure.org
Internet Summit: www.internetsummit.com
Digital East: www.digitaleast.com
Digital Summit: www.digitalsummit.com
Tags: incubator program, JumpStart Foundry, Mephis, Nashville, seed funding, Seed Hatchdery, Solidus Company, TN
Posted in Money, Other SE, Tennessee | Comments Off
Wednesday, March 9th, 2011
 By Allan Maurer
RESEARCH TRIANGLE, NC - Have you ever purchased something from an online retailer such as Amazon to avoid paying sales taxes? A group called Alliance for Main Street Fairness (AMSF), argues that by failing to collect sales taxes, online retailers have an unfair advantage over brick and mortar stores that is costing jobs, killing businesses and contributing to state budget deficits.
AMSF says it is funded by and advocates on behalf of employers who believe there must be a fair and balanced approach concerning the sales tax collection system. The group distributes the increasing number of media editorials supporting collection of sales taxes from online retailers.
We have reported on North Carolina’s attempts to get Amazon and other online retailers to collect sales taxes. The state, which requires residents to pay sales taxes on online and catalog purchases whether the retailer collects them or not, lost the first round of a federal court battle in which it sought to collect information on its resident’s purchases from Amazon. It has threatened to bill residents for sales taxes on Amazon purchases going back to 2003.
Federal law currently requires retailers to collect sales taxes in states where they have a nexus (a physical presence such as a store, warehouse or other facilities). Since Internet-only retailers do not have a nexus in most states, they are not currently required to collect the taxes.
Other states wrestling with the problem include Arkansas, California, Florida, Illinois, Indiana, Minnesota, New Jersey, Pennsylvania, Tennessee and Texas. The National Conference of State Legislatures says states lost about $8.6 billion in 2010 in failing to collect sales tax from online and catalog sales. The number is projected to be approximately $37 billion from 2009 to 2012.
Personally, we can see how buying a big ticket item from an online retailer might save a significant pieces of change, but even there, we doubt that most people buy online just so they won’t have to pay sales taxes. We buy online because it is convenient. We can do our shopping from our desks, which has inherent advantages that will not disappear when online retailers collect sales taxes.
We shop online because we often find a much wider selection available at the lowest possible prices online, whether we are looking for a book, a camera, or a refrigerator. We save gas and wear and tear on our vehicles and ourselves. But we have never bought an item online to avoid paying a sales tax.
Sooner or later, we suspect, this problem will be resolved through legal means that require online retailers to collect state sales taxes. That’s fine with us, although we think states threatening to collect years of back taxes are certainly wrong-headed as well as on legally shaky ground.
In the meantime, the way states and the online retailers are going about dealing with the problem is just causing more problems: such as Amazon dismissing its associates in North Carolina and other states attempting to use their status to say the reatailer has the physical presence in the state to create a nexus.
That move causes grief for many online startup businesses. Some larger ones actually left North Carolina when Amazon fired its state associates, and others complain it makes it harder to get that early revenue necessary to achieve outside growth funding.
Amazon is not helping matters by negotiating not to pay sales taxes even in states such as Texas, Indiana, Nevada and Tennessee where they have distribution centers.
The whole mess will likely require action on the part of the US Congress. “The Main Street Fairness Act,” H.R. 5660 was introduced in the US House in July 2010, and it would behoove Congress to vote on the bill.
While requiring online businesses to pay sales taxes may indeed help ailing state budgets and possibly help some brick and mortar retailers of big ticket items, we do not think it will do much to save book stores large or small or most other on the ground businesses from their online rivals.
E-commerce gained remarkable ground during the 2010 holiday season and we doubt that is because shoppers could avoid sales taxes. Brick and mortar retailers would be better off focusing on how they can develop an online marketing program and an online sales presence than bemoaning the perceived sales tax advantage. The real advantage of selling online, 24/7, is far greater than saving a few cents on the dollar.
Just today, AMSF launched a new web page in response to online-only retailers like Amazon.com threatening to terminate relationships with in-state affiliates to avoid playing by the same rules as Main Street and collecting sales tax. AMSF says it is ready to help small businesses thrown under the bus by Amazon connect with other retailers who are interested in doing business with them and collect the sales tax at the point of purchase.
NC Settles Amazon sales tax dispute, reserves the right to go after customers – This piece includes links to a considerable amount of background information on the online sales tax dispute.
TechJournal South is a TechMedia company. TechMedia presents the annual conferences:
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Internet Summit: www.internetsummit.com
Digital East: www.digitaleast.com
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Tags: Amazon tax, Ark., CA, NC, Nevada, online shopping advantages, Stand With Mainstreet, Texas, The Main Street Fairness Act, TN
Posted in Uncategorized | 7 Comments »
Wednesday, January 26th, 2011
 MEMPHIS, TN – Memphis-based Computable Genomix has secured an investment in an undisclosed amount Memphis-based venture capital firm Innova to pilot a novel process for developing genetic biomarker tests.
Biomarkers are used to predict how a person will respond to drug therapy or to determine their risk of contracting a disease.
Leveraging its next-generation computational discovery capability (patent-pending), Computable Genomix is developing highly targeted genetic biomarker tests for clinical researchers.
These tests will help address pressing pharmacogenomic and other clinical questions and enhance the ability of physicians to bring personalized medicine to their patients.
“Current approaches to genetic biomarker development require clinical researchers to work with thousands of patient samples and sift through millions of possibilities to pinpoint a handful of potential biomarkers for further evaluation,” said Brad Silver, CEO of Computable Genomix.
“Using Computable’s very targeted tests, clinical researchers need fewer patient samples to assess a small number of high-value biomarkers. The end result is savings of time and money.”
“As an incubator company at the Memphis Bioworks Foundation, we have closely followed the evolution of Computable Genomix from a supplier of software to a developer of proprietary biomarker tests,” said Innova partner Jan Bouten. “We are very excited about Computable’s opportunity in the burgeoning biomarker market and its prospects for accelerating their use in clinical practice.”
Tags: biomarker tests, Computable Genomix, financing, Inova, Memphis, TN
Posted in Biotech, Other SE, Pharma, Tennessee | Comments Off
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