Patent trolls – companies that buy about-to-expire patents and go after companies using, inventing, or patenting similar software – are no longer only a tech industry concern. In fact, more non-tech than tech companies were targeted by patent trolls in 2012, and trolls are marching onto new targets every day with their operations funded by settlements and licensing arrangements achieved through the threat of litigation.

Patent trolls quickly figured out that casting a wider net than just tech companies could be more fruitful, and retailers and other end users are feeling the pinch of this new strategy. Trolls allege infringement not only on specific software but also on methods of doing business. For example, MacroSolve Inc. has filed numerous suits related to violating U.S. Patent No. 7,822,816, a “business method” patent that covers the process many businesses have used to develop their mobile apps. As retailers innovate and evolve, claims based on abstract ideas and general processes cut at this growth and ingenuity.

Trolls don’t just target national brands. Independent and smaller retailers are also receiving demand letters and being sued. These smaller businesses, just like national retailers, lack the resources (capital and manpower) and expertise in patent litigation to fight trolls and will often settle to avoid a lengthy and costly battle.

Although Democrats and Republicans don’t agree on much these days, there is bipartisan recognition on Capitol Hill that patent trolls are a problem. On Wednesday, the House Small Business Committee examined “patent reform implementation and new challenges”, with NRF and Shop.org providing comments for Wednesday’s meeting. Even the House Judiciary Committee’s Subcommittee on Courts, Intellectual Property and the Internet has already held two hearings on abusive patent litigation practices.

Lawmakers have also introduced legislation aimed at curbing the problem.  In February, Representatives Peter DeFazio, D-Ore. and Jason Chaffetz, R-Utah, introduced the Saving High Tech Inventors from Egregious Disputes Act, or SHIELD Act, which would require patent trolls to pay litigation costs when they lost in court.  Last week, Senator Charles Schumer, D-N.Y., introduced the Patent Quality Improvement Act, which would allow retailers to ask the Patent and Trademark Office to conduct a post-grant review of a patent involved in litigation. And on Thursday, Representative Ted Deutch, D-Fla., introduced the End Anonymous Patents Act. These are important first steps in combating patent trolls.

NRF supports the bipartisan approach Congress is taking to address this problem and is actively engaged with lawmakers to find a solution that alleviates the burden that retailers face.

As we move forward into late spring and early summer, many experts will take a close look at other essential economic indicators as they relate to the strength of the consumer. It is not surprising that media headlines are locked in on what is happening in the housing market, especially with seasonal sales of lumber, garden equipment and building supplies all faring well last month, as they typically do this time each year.

Housing starts in March broke an annual pace of one million for the first time since the beginning of the recovery in June 2009. Truth be told, no other sector in the economy plays such a dominant role in business cycles. The relationship between housing and the economy is crucial in every economic recovery because they both depend on the strength of growth in employment and incomes. Slowdowns and slumps in housing tend to foreshadow declines in economic activity, while housing upturns tend to be a key factor in economic recoveries that often set the pace for broader economic growth.

It’s important to note that economic activity is stimulated more by the purchase of a new house than an existing house because of the material and labor required in constructing that new family home. Housing prices also tend to move closely with consumer spending, almost directly impacting the retail industry. The latest S&P Case-Shiller 20 City Home Price Index has jumped 9.3 percent over the past year, a solid increase. Each time a home is purchased, consumers arrange financing, undertake renovations and/or make investments to improve their comfort or home values. This helps generate new sales of appliances, home furnishings, garden equipment and more. America is enjoying the fruits of a sustainable, relatively healthy housing market right now, but that wasn’t the case as recent as 2006 when the United States witnessed a significant collapse in the mortgage market. As a result, consumers pulled back on spending in almost every category except necessities like health and personal care grocery. Sectors like home furnishings, electronics, building materials and other specialty stores immediately felt the difference.

As we stand now, the worst of the housing crumble is behind us and we are encouraged by the growth seen just these last few years. Finance options remain a challenge for many consumers, but prices are low enough that many Americans have a better chance of affording a new house now than they did at the peak of the market a few short years ago.

While the road to a complete recovery may seem long, we have seen substantial gains over the past year and expect another good year ahead, with many of the improvements coming directly from home builders and buyers. Nonetheless, the improvement in the housing market will continue to play an integral role in pace of the economy and the continued strength of the consumer. NRF members can access this month’s full Monthly Economic Review here.

According to NRF’s latest graduation survey conducted by BIGinsight, family and friends want to make this milestone special for their loved ones while also staying on budget. On average, consumers will spend $49 per recipient, a slight decrease from last year’s $51. For more graduation statistics, visit the Retail Insight Center to access the full data.

This year’s survey also found that gift-givers will purchase gifts for up to two graduates; shelling out an average of $94.

While these young adults are now on their way to making some of the most important decisions of their lives, consumers are willing to give them a push in the right direction with the most practical gift of all – cash.  An estimated 57 percent of consumers plan to give money. For grads, cash is the perfect gift for future needs from college expenditures to their first apartment.

Consumers will also say “congratulations” with gift cards (32 percent), apparel (11 percent), electronics (12 percent) and greeting cards (43 percent).

Total spending on graduation gifts is expected to top $4.6 billion this year, further illustrating that relatives and friends want to show their support and appreciation for the Class of 2013.

Kathy Doyle Thomas, Executive Vice President of Half Price Books, listens to one retailer’s story during her Main Street Retailing Forum presentation.

During the Main Street Retailing Forum held as part of NRF’s Washington Leadership Conference last week, Half Price Books Executive Vice President Kathy Doyle Thomas shared the story of how her brand – just like those above – started on Main Street and has grown to a $250 million company with more than 100 stores across the country. Thomas noted that regardless of size, all retailers struggle with the same issues, such as how to execute smart social media, leverage localization as a competitive advantage, meet customer expectations, keep up with fast-paced technology changes, implement sustainable retailing initiatives and juggle it all with the same amount of resources at the quickest pace possible.

And while the challenges are the same, so are the opportunities for increased sales, profits and share of wallet, enhanced customer loyalty, improved competitive position, and the ability to make the world a better place. But where should small businesses even begin?

Thomas suggested that retailers find out who their customers are by asking questions on Facebook, leveraging Google analytics and using other low-cost resources, then developing that audience through blogs or other creative content. “You are the expert. You have credibility,” she said, adding that Half Price Books could directly attribute spikes in sales to blog posts covering certain products.

Thomas also shared how experimentation and investment have paid off dividends when it comes to community initiatives. Half Price’s “Decline a Bag” initiative was designed to help customers make environmentally sustainable choices as they shopped, and executives set a lofty goal of 1 million declines over a year. Instead, the company met the goal in six months. At the end of the program, Half Price donated $50,000 to charity in response, letting employees decide on charity options and offering customers the chance to vote on final selection. Thomas said the initiative was a great opportunity to engage with customers and build employee morale – a trend that isn’t going away anytime soon.

As the source of new ideas, job creation and community growth, Thomas told retailers who packed the room that Main Street is “where the history of retail starts and where the future of retail begins.”

In advance of our Loss Prevention Conference next month, we’ve been exploring how many of today’s seasoned LP executives have played an integral part in this evolution throughout the course of their careers. To wrap up our series, we spoke with LP Advisory Council Chairman and Vitamin Shoppe Vice President of Loss Prevention Gary Johnson about his personal career journey.

Read on to find out how his first employers gave him a leg up in the business, how rewarding it is to help others and why retail business savvy is critical to success in LP.

Gary Johnson, Vice President of Loss Prevention for Vitamin Shoppe Industries

When were you first exposed to the loss prevention profession? What made you decide to pursue a career in loss prevention/asset protection?

I first heard about loss prevention while studying law enforcement at Western Illinois University. I decided to do my internship with a retailer named Osco Drug because the thought of catching shoplifters sounded fun — and it was one of the paid internships! After that, I became quite interested in it as a career. I always had an interest in business and law enforcement, and it paid more than a patrolman with the Chicago Police Department, so it was the best of both worlds.

How has your unique personal background helped you succeed in your LP career?

When I began in LP, my early mentors were really retail operators first and loss prevention professionals second. They taught me how to sell prevention concepts, how to show the dollars and cents of a particular initiative, and the importance of influencing people to want to play a role in reducing shrink. Certainly, I had to build experience and confidence with the core competences of loss prevention techniques, but looking back it was more important to gain proficiency with retail concepts and “soft” leadership skills.

Tell us about a particular moment, challenge or success that made you certain this was the right profession for you.

Wow, there have been many. It’s very rewarding to help people, whether it’s developing a program that keeps people safe at work, helping advance someone’s career, or catching a criminal that has hurt others. For example, I still recall working at Pier 1 Imports and how gratifying it was to solve a case involving a string of robberies, one of which involved a sexual assault of an associate. Working the data from my office in Fort Worth, I was able to connect numerous dots and link the right law enforcement agencies. Back in the day, this sharing of data didn’t frequently happen between private sector and law enforcement. I’ll never forget the associate’s reaction when I informed her that the guy who assaulted her had been caught.

The role of LP is continuing to expand and grow. When it comes to hiring and promoting team members, what kind of talent and skill sets are you looking for to be successful now and in the future?

Yes, the role of LP continues to evolve — and that’s a great thing! The C-suite has recognized the value that a professionally led loss prevention program means for the business. LP impacts not only shortage reduction and shrink but also IT security, data security, product safety, workplace violence programs, brand reputation, social media and so many more parts of the business. When looking for talent, it’s critical to find LP people who have solid core competences, but just as important is retail business savvy. Understanding how all facets of the business work, the ability to identify gaps, and, of course, build remediation plans. Leadership skills are essential. Being able to coach, train, and be a catalyst of change is vital because today’s LP professional must be able to influence and motivate cross-functional teams at all levels.

But that wasn’t the case with NRF’s annual Washington Leadership Conference this week.

Retailers from across the country arrived Monday evening just in time to watch the Senate overwhelmingly pass the Marketplace Fairness Act – landmark sales tax fairness legislation NRF has had at the top of its priority list for more than a decade. And they were able to spend the next two days walking the halls of Congress to urge members of the House to follow the Senate’s example in voting to require online sellers to collect sales tax the same as local stores.

Rather than just another conference, WLC quickly turned into a combined victory celebration, pep rally and annual reunion of familiar faces in the long-fought battle to level the playing field between online and brick-and-mortar retailers.

Senator Michael Enzi, R-Wyo., sponsor of the Senate legislation, joined the party, as did Representative Steven Womack, R-Ark., sponsor of the House version. Both thanked retailers for their support, urged them to keep the momentum going, and emphasized that personal examples of how untaxed online sales are harming local stores and jobs will be the best ammunition to overcome objections expected in the House.

But as important as the sales tax victory was, it wasn’t the only part of the conference to get excited about.

Hundreds of retailers ranging from Main Street store owners to CEOs of some of the nation’s best-known brands turned out this year. Thirty-one states from across the country were represented, with Vermont sending the most retailers (five people from four businesses) and Washington State getting credit for the longest distance traveled (2,400 miles).

Retailers heard Cokie Roberts, veteran analyst for ABC television and National Public Radio, offer an overview of the polarized political scene in Washington, got lobbying tips from former Senator Blanche Lincoln, D-Ark., and former Representative Billy Tauzin, R-La., and participated in more than 80 meetings with lawmakers and staff in both the House and Senate. Committee meetings ranged from the NRF Board of Directors to sessions on loss prevention, retail technology standards and restaurant food supply chains.

NRF is already planning the 2014 Washington Leadership Conference. While it’s too early to say what next year’s “big bill” will be, we certainly hope any retailers who show up expecting to lobby on sales tax fairness will find out they’re too late – if this spring’s momentum can be maintained, the Marketplace Fairness Act could be a law that’s already on the books by then.

To see WLC 2013 in photos, watch NRF’s Flickr slideshow below.

“How could somebody walk into a business and order online right in front of them? That’s a slap in the face!” Womack said. “They ought to have the decency to at least walk outside.”

The Arkansas Republican spoke late Tuesday afternoon at NRF’s annual Washington Leadership Conference, less than 24 hours after the Senate overwhelmingly passed the Marketplace Fairness
Act, legislation that would allow states to require online sellers to collect sales tax the same as local stores.

Womack is the lead sponsor of an identical bill in the House, where the battle will now shift. And he urged retailers to use personal stories like his example of “showrooming” to keep the momentum building and convince House members it’s time to level the playing field between online and brick-and-mortar retailers.

“They have marched this ball down the field in an extraordinary way,” Womack said of Senate sponsors of the legislation. “If we’re not successful at marching this through the House, we’d might as well put up a billboard and say ‘shop on the Internet because it’s tax free and always will be tax free.’ ”

Sales tax fairness is expected to face a tougher fight in the House, where Speaker John Boehner, R-Ohio, told Bloomberg Television Tuesday night he will “probably not” support the measure because “you’re putting a big burden on some very small businesses.” (Despite those concerns, online sellers with less than $1 million in out-of-state sales each year would be exempt, and collection would be handled by software paid for by the states.)

Unlike the Senate, which skipped the committee process in considering the bill, the House plans to send the bill to the Judiciary Committee for hearings, debate and a vote rather than going directly to the floor.

Womack was undaunted by the potential obstacles, saying he welcomes the full committee process so no one can claim that the bill was rushed through.

First elected to the House in 2011, Womack is an admitted newcomer to the congressional debate over sales tax, which has been waged by Senate advocates like Mike Enzi, R-Wyo., and Richard Durbin, D-Ill., for more than a decade. But that doesn’t mean that he’s new to the issue – as mayor of Rogers, Ark., he presided over development of a $250 million shopping center that opened in 2006 and brought new retail stores to the city of 55,000. Even then, “I knew if we didn’t come up with a solution for (sales tax fairness) what would be done to our retailers.” Having fought the sales tax fight in Congress, “I’m even more motivated now.”

Newcomer or not, Womack is pursuing his goal with the fervor of a true believer: “I believe in my heart that this bill is going to pass,” he promised. “If not, we as Congress will have presided over the destruction of retail as we know it.”

After more than a decade of patience, persistence and a good dose of perspiration, the United States Senate approved the Marketplace Fairness Act by a bipartisan vote of 69 – 27, sending a powerful statement that lawmakers understand the need to level the playing field for sales tax collection. The vote happened to overlap with NRF’s Washington Leadership Conference, as we welcomed hundreds of retail executives to our nation’s capital for retail’s yearly fly-in.

Sales tax fairness is only one of a handful that top NRF’s policy agenda, each of importance to the future growth of the retail industry. From sales tax fairness and corporate tax reform to economic policies that drive capital investment and the fiscal certainty needed to help spur job creation, NRF is committed to working with lawmakers and opinion leaders in shaping a policy agenda that will help retailers recognize the success they are working daily to achieve.

Through the “This is Retail: Careers, Community and Innovation” campaign, our retailers are telling compelling stories on Capitol Hill and beyond that are helping to shift the perception about the role retail plays in every community across the country. And as the largest private employer of any industry sector, we cannot be ignored and our voices will be heard.

NRF Senior Vice Presidents David French and Ellen Davis, and Vice President Rachelle Bernstein appeared on CNBC, CNN, and MSNBC, respectively, to explain the need to level the playing field between online and brick-and-mortar retailers. Watch each video below.

After the 69-27 vote to approve the Marketplace Fairness Act, NRF President and CEO Matthew Shay praised senators for “standing with local retailers and America’s small business owners in a strong, bi-partisan vote … despite a highly-funded misinformation campaign by the legislation’s opposition.”

“Today’s action in the Senate is a significant step for sales tax fairness and we look forward to a robust debate in the U.S. House of Representatives,” Shay said.

Why? The answer is easy – imports.

That might not come as a big surprise to most. NRF has argued for years that imported merchandise lets retailers provide American families with the high-quality products they demand at the prices they can afford.

What might be surprising, however, is that imports also help create U.S. jobs. A total of 16 million American jobs – including 1.8 million in retail alone – are tied to imports. That amounts to 9 percent of U.S. employment.

Those statistics and more come from “Imports Work for America,” a new study conducted for NRF, the U.S. Chamber of Commerce, the Consumer Electronics Association and the American Apparel and Footwear Association. Written by economists Laura Baughman and Joseph Francois of the Trade Partnership Worldwide, the study is being released as part of “Imports Work Week” to help draw attention to the important role imports play in the United States and global economy.

Among other things, the study shows that imports aren’t just about retailers and consumers. U.S. manufactures rely on imported inputs to production and raw materials to make many of the goods they export around the world. And on the flip side, many imported finished products include Made-in-the-USA components.

And while importers are often portrayed as big businesses, it turns out that more than half of U.S. importers are small businesses.

This study is an important read for anyone interested in the retail supply chain and international trade.  It provides an important view as to why imports are not as bad as some make them out to be. Imports help drive the U.S. economy and employment just as much as exports, and often times help to drive U.S. exports to overseas markets.