First a look at our top bloomberg headlines. Sheryl sandberg received compensation package worth 60 million last year. Yet another 550,000 easter did units plus a base salary of 395 grand and a bonus of 573 grand. Ceo receive no bonus or additional equity. To buy intolooking the tv industry. This rda facebook partner. Both Companies Work with the european broadcast to provide social and elected. The latest Technology Company to foul for an ipo. Make networking equipment with a focus on software. The three dsco Million Dollars last year. It is quite profitable. Margins are profit at 21 . The hope to raise 200 million in the ipo. Not to our lead story of the day, apple and samsung going back to court in san jose over a patent that many people say this is a fight between apple and google. A lot of the things they have a problem with our with the Google Android operating system. The fundamental question is what was googles alone, what was the cap from samsung, or is samsung the actual violator in the case . The pretrial has focused on that. It looks like samsung, with a list of people they intend to call, will lean on the fact that google did the bad thing and they did not. Apple got a huge award the last time they took this to court. The judge has encouraged them to work this out through mediation but that has not worked. Why go back this time . There was a lot learned in the first trial. Apple has a better understanding of how samsung deals with these issues. The evidence last time was fairly amazing, meetings where google said, samsung, you cannot do this, but they did so anyways. That was fairly damning evidence the first time around. Joining us now from Mountain View is the managing director of 3lp advisors. He served as chairman of the u. S. Patent and Trademark Office overnight oversight committee. How do you think this case is different, is this more of a fight with google and the last time they were in court . I think you are right. I think it is a conversation, if you will, between apple and the rest of the smartphone ecosystem. I think it goes to the operating system this time. In what ways, kevin . The way i see it is, you look at microsoft, as you mentioned, bringing in nokia. That brings the microsoft operating system up. You look at the developments in the google system. Then you look at china, which is trying to bring on cos, which will be an alternative to apple. You look at the smart watch coming out of samsung, which they are looking at moving away from google, to have a different operating system which they may bring into their smart phones. So apple is saying to the rest of the ecosystem, look, i own these features, these are mine. If you want to compete, you have to come up with something different. That is the conversation i think is going on. Apple is asking for 40 for every samsung device that infringes on these patents. Is that anywhere near realistic . That is huge. I believe microsoft has been reported to be getting about 10 for all of its patents on software, architecture, and everything else, from samsung, five dollars from htc. So, 40 is almost a shutdown price. It disrupts costa goods sold, disrupts margins to the point where it is very difficult to move on. That is partly a consideration of the google operating system being free. Apple has got to do something to really change the economics for the rest of the industry. You also wonder if the economics change as apple and samsung starts to look downstream at cheaper smartphones with even lower margins and profits available to them, where losing five percent of an operating line is not that big of a deal with 40 Gross Margins. But when the Gross Margins fall below that, if they were to lose five percent of that, that could make a difference. If you are in licensing, one of the things you want to do is get what apple is asking for, which is a set rise for each unit. As opposed to going with a percentage. As we all know, as the margins or the selling price goes down, the percentage goes down. This way, the percentage goes up if they keep the price. Lets talk about the specific things apple is claiming samsung or google essentially copied, some of the swipe to unlock, the ability to click on a phone number in a text message and ill directly. Based on what youve seen, who is right . Does apple have a strong case . This is the gazing into the crystal ball side of life. These are interesting patents in the sense that they potentially could be questioned on validity. The infringement side is pretty clear, but the validity side will be interesting. Did they really come up with that feature . Is that feature so novel because you have been able to do it in the apple system by clicking on links to other things. What is universal search . You have been able to do that with the google system actually on your pc. That was many years ago. These are the sorts of things that will need to be worked out in court. The specifics here matter. Kevin, managing director of 3lp advisers, thank you. We will be continuing to follow this. Healthcare. Gov experiences another crisis as millions flock to the site before then deadline. Why has the web portal been such a disaster . . We are talking about healthcare. Gov, the deadline to sign up is today. Yet another glitch at the 11th hour. It went down for six hours. Four hours of which were scheduled maintenance. I do not know why you would have that tonight before the deadline it is the wrong time to take a pit stop. Its Million People have signed up. Joining us now to discuss this is the former chief Information Officer of the United States who now working with the sales group. What do you think happened . I do not think it is a question of what happened at the 11th hour. The deeper question is whether you look at the federal government or the state and local governments. You have four states that have core issues around healthcare. Gov technologies. A big problem is this gap that exists between the public and private sector, the ability to scale technology. When you look at what happened with your typical consumer experience, on amazon or google, or opentable, if you make a reservation to your favorite restaurant or book a ticket anywhere on the planet, yet when it comes to these i. T. Systems, the issue is the government is still stuck in 1960s technology yet, we look at what is happening with mobile, social, cloud, where you are able to provide some of the most complicated services to the american people, and in health care we believe, from a policy perspective, the absolutely the right policy but the government needs to close the technology gap. You were working at the highest levels of government, looking at the way the government handles i. T. Is there something about that approach because a lot of people are thinking cutting edge working for the government. Why does that get corrupted into this old way of thinking about new problems . It is not like every single Government Agency is not doing well. If you look at agencies like the gsa, they are doing some Amazing Things when it comes to Game Changing adoptions when it comes to the people. But you have a set of Leaders Within the government that have historically made decisions that take them back to the 1960s era. When you look at mainframes and computers and here we are with lte networks and social networks that aggregate billions of users what are some of the decisions they made that it is back to the 1960s . Custom i. T. Projects and spending millions of dollars. Even if you look at the state of oregon, after spending 305 million, there are fundamental problems there. Maryland, minnesota, same set of issues. These are legacy technologies designed to serve people who are not used to leveraging technology the way they were designed. The government contracts. Who should they not have contracted . Contractors that solve problems by throwing more bodies at the issue. The incentives are perverse how do you know . If you are hiring and you think i have to solve this problem, they say they will put 200 people on it, they say 20. You can understand how they would make that decision. What has to change when they think about efficacy, not the number of people . It is almost like saying, why would a large enterprise build an email system . There are companies that do it better, models that are far superior to what was available in the 1960s. This shift to cloud, when you look at Government Agencies that have made the shift, they have not been able not only been able to save millions but they have provided meaningful services to their citizens at the fraction of the cost. You work at salesforce now. Why didnt the government take you up on that . That is a question the government can answer. We are seeing all over the world , whether it is japan using cloud computing, or the new Software House government in australia, or even in the state of colorado, numerous federal agencies, they are leveraging the power of cloud, social, and mobile to serve the american people. One of the contractors that the government hired was oracle. You and oracle are competitors. How did that play into this . I can talk about salesforce. We have customers from hp, customers at the local and state double, that are moving millions of transactions and we prosecute over a billion transactions. It is pretty powerful stuff. If this were a military contract we have seen this time and again where there are special optical helicopters, where the contractor drives the process to decide but will be in the system. Was that the case with the Affordable Care act . Government contractors deciding how they should be structured . You cannot blame it purely on the contractor. Of course, there are issues with the contracts. This i. T. Cartel culture where you continue to throw body more throw more bodies of the problem, that is not sustainable. And when you look at the crisis most governments face around the world where they are printing money, there is nowhere to throw good money after bad. So there is a broken system here where you have incentives around this i. T. Project where you keep adding more and more bodies, building on an hourly basis, when there are even ways to deploy technology. The way you do it in the 21stcentury imagine if you had a start up company that said give me a year and 10 million and we will go out there and build my project, and then we will solve the fundamental problem we need to address. Salesforce executive president , thank you for joining us. The day is the last day to sign up at healthcare. Gov. She runs one of the Biggest Online media sites in the world, so why would she encourage people to disconnect from their technology . Arianna huffington will be with us later this hour. Welcome back to bloomberg west, im emily chang. Amare stoudemire has rear hopes beyond basketball. Relatively media is best known for its movies and tv shows, but is also home to one of the largest sports agencies. Jon erlichman is with us from l. A. Here in hollywood, athletes are becoming a more important part of the agency story. We recently saw wme buy img. You are talking about a company with a sports agency, and also has movies and tv shows, opening up the doors for someone like amare stoudemire. I am a behind the cameras type of guy. I do like to produce. If there are great opportunities for me to get involved in the film world, i would think about it. A lot of people do not know, he was one of the producers of rock of ages. Do you hear about the movie business being this big money pit . Are you looking at places where you can be investing, building on your career . You want to be smart about what you are doing. You do not want to do too much. Pick your opportunities of wisely. With the help of relativity, we do that. We do that all the time. We will say that this is a project that we are working on that is cool. You should read the coverage. See if you like it. Really, the movie that wed together that comes out in november, it is the first film where he is a partner of ours. Shot that last summer. That will come out in november. That is the first but we did together in that capacity. We do not want guys investing money where there is any risk at all of not being successful. Sometimes you do these digital shorts, sometimes you team up with other members of the royal family. What is the goal of things like that, is it just to show a different side of yourself . It is fun to do when you can show your acting skills, have a humorous approach to it. Build your online following, which is good. Did i hear you are also doing a judd apatow movie . This summer. I cannot give it away, but he is a big part of the film. It shoots in new york. Is there any actor that you would be interested in producing a movie for, or acting with that you have not had the opportunity to work with yet . I love will smiths acting skills. I am a huge fan of brad pitt and his acting skills as well. George clooney is a big timer as well. Any other players, looking at their post player career and say that is a model i want to follow . Magic johnson is a prominent example of how you can do things off the court. What he was able to do away from the game of basketball, he has become a model of what athletes are trying to achieve. You originally said you want to be a knick for life. He did not check with me when he said that. Is that something that is realistic, to think that way . It was a great marriage myself and the new york knicks, when i first signed. It has been going great so far. Once we made the playoffs, once we had a winning atmosphere, along with that, we should have opportunities that come from off the court. Are there similarities from producing in your day job . With the knicks, it is nonstop work. You are always training, eating right, resting and recovering for the game. With film, you have a little time in between your films. Maybe three or four months before the next episode comes along. There is a lot of sitting around on a movie set. No plans to hang up the sneakers yet for fulltime producing just yet. Thank you so much. Arianna huffington has been meeting with tech giants like google, linked in, and twitter, but what does she think about silicon valley, and why is she here . You are watching bloomberg west, where we focus on innovation, technology, and the future of business. Arianna huffington launched the Huffington Post in 2005 and then sold it to aol for 15 million. It continues to be a fascinating business and really elevating her presence on the web and will be on. Along the way she has written more than a dozen books are the most recent, thrive. I sat down with arianna and asked her why, of all the things she does, she wrote the book now. Take a listen. Millions of people are earned out. About that. You are on the floor bleeding. I got four stitches in my right eye. The start of me asking this question. Conventional measures of success. You are not successful if youre lying in a pool of blood. Started with them looking at was i overworking and not learning to do this. We realize they are performance enhancements. My idea. Hat led to it is how to thrive. And involves lip wisdom really bringing joy into your life. One of your big things as good as much sleep as you can. Yes. The science is a real performance enhancement. Sleep deprivation is dangerous. It kills brain cells. Now we are also discovering that it kills startups. Do you think you would have been as successful as you have been if you did not sacrifice sleep along the way . Absolutely. This is the delusion of our civilization. Because that is how more successful people have done it, we think that is the only way to do it. But the truth is, people are successful because of their talent, passion, and i think people would be able to navigate their lives and i can say that about myself much more effectively and with much less sacrifice, if we actually prioritize our own wellbeing and our own capacity to connect. This is also about leadership. If you think about it, leadership is really about seeing the iceberg before it hits the titanic. If you look at the financial collapse, how many chief executives missed the signals and were completely caught unaware . I feel right now that there is a new listening. I have been sitting here 12 years at linkedin, google, twitter, and this is a conversation that is resonating. One of the things that is paradoxical in a way, here in the belly of the beast, when it comes to technology, the creation of our brave, new digital world, you have people who are beginning to send their children to schools because they do not want them to become addicted to technology at an early age. You have people who are learning to unplug and recharge. I say in the book that we are much better at taking care of our smartphones than we are of ourselves. Im wondering if you think technology and 24hour connectedness is better or worse for us. Technology has been amazing for us in terms of connecting us with people around the world, giving a voice to people who otherwise would not have a voice, but technology is dangerous when it prevents us from connecting with ourselves and renewing and regenerating. Think on your iphone, you get constant mornings, 20 battery remaining, 16 battery remaining. Immediately we get concerned, we look around at our recharging shrines in our offices and homes we carry portable rechargers. When it comes to ourselves, we often are not even aware that we have no battery left until we are below zero. What do you think of the fitness tractors, the activity trackers . I think it is great. I love all of these empowerment tools, because it helps us take charge of our own health. Right now, if you look at it, three quarters of our Health Care Costs are because of preventable, chronic, stressrelated diseases. If we can actually take charge of our health and get feedback, that is really what i was saying when i spoke at google earlier, that most tech people here love data, and they love experimenting. So what im asking people in the book is to experiment with small, microscopic steps, little changes in our lives that will have an incredible effect, like more sweet, like beginning to meditate five minutes a day. Those are two of the steps i recommend in the book. Learning to take our devices out of our bedroom at night and charged them in another room so that we are not tempted to go back and look at our data in the middle of the night. I wonder if all this data can drive us crazy . I know some people who gave up their fitness wristbands because it was too much. Right. That is where we all need to make individual decisions. There is no question that we may