sponsored by -- ♪ >> good morning, everyone, i'm scott mcgrew. if you ever renovated your kitchen, you know what we are going through. we are in the midst of moving our press here set into a new studio. it's all quite fancy, i'm told. but in the meantime we have to bring you highlights from some of our best recent shows and we begin with drones. can your neighbor fly a drone over your backyard? a lot of people want to know the answer so we asked one of the nation's foremost experts in

drone policy. >> the air space is something that being talk about in towns and communities across the united states. people want to know, i want to fly in my own backyard commercially or prevent my -- >> just for fun. my neighbor says you can't play over my house? >> yeah. >> really? >> at least 83 feet above my backyard is my air space, it's the immediate reaches of the land. it's unclear above 83 feet and below 400 feet. the case law is not entirely clear on subject and something getting a lot of talk but i would say that the privacy concerns are real and this is what we're hearing across the united states is that people are worried about this kind of thing. both companies and individuals. people worry -- the same technology mutual laws that protect us, stalking laws and peeping tom laws that protect -- >> existing law that drone or no drone, stepladder or what not would still apply. >> still apply.

>> forget my ignorance, to sell a drone do i need to have a gizmo it will respond to no drone automated pronouncements? >> no there are some other there with technology into the drones but it's not mandatory or required. even for commercial use, there's not going to be any air worthy requirement that a manufacturer has to go through in order to get their drones on the market. >> if you try to fly dji drone near the white house, it won't fly. >> exactly. >> it knows it's near the white house. do you see that coming as legislation, we list the airports and software wouldn't let the hobbiest drone fly there? >> yep, i know there's legislation that would mandate the incorporation of technology. it's also important p that just mandating this technology on drones doesn't alleviate the liability for or responsibility for operators to be safe and to

know the rules and laws. so that they are not flying illegally they can't rely on technology. >> why do i have a sense there's going to be some disaster and that's going to put -- >> yeah, you think that's going to happen, that something bad will happen with the drone and there will be a lot more accelerated talk about these issues? >> we certainly hope not. i think educating and enforcing the laws and rules on the books, the faa does not have the resources to police all of the illegal activity that's happening out there but that's where we need state and local law officials to step up and help with enforcing the law in local jurisdictions. >> a clip from our interview with drone expert lisa elman. now to a freak guest on the show, selig is an expert on culture of silicon valley and joined us to talk about why in the world of many good ideas only a few enjoy breakout

success. >> it's exciting to see innovation in all different ways. you think about google, we couldn't live without it. it was not first search engine -- >> like eight of them. >> people said what are you talking about, we don't need another one? >> but we came in and did it better. these innovations where it's already been done before, they come out in a way to say, we figured out how to really make it work. >> what about companies that aren't in technology, you have all of the automakers and food companies coming and setting up r and d shops in silicon valley. do you think they are going about it the right way? >> they are trying to absorb the culture and figure out what's the thoughts of silicon valley and one of the things so exciting about this area, people are willing to take lots of risks, they know if you're going to do something that's big earn no one has done before. there are going to be some surprises. i as a scientist a.m. a huge fan of looking at -- >> do you think companies are

afraid of failing? in the case of google, they still like taking risks but there's nothing to be ashamed of, right, you learn from your mistake and move on? is there too much money or ego at stake? >> it's a huge problem with a lot of big company and this has been talked about about a a lot of people. they get risk adverse. they are getting a lot of attention if something didn't work and people point to them. it's exciting when you have companies like google that can demonstrate, we can have an arm of in company where we do something really big crazy things and some won't work out. >> particularly important as you mention companies into silicon valley, ford, ford comes in from detroit, you've got to be able to fail and detroit be okay with that, that your office created something that did not work out. >> i don't even want to rel gate that to tech companies, like the publishing industry where i work, all industries are adverse and thinking about that 90 day

shot clock, what's going to happen when they announce the results. >> if they are not willing to take risk, someone will come in, we'll totally rethink the publishing business. >> you teach creativity, can you teach creativity? the one thing you can't teach is creativity. >> i love this question. that is the entire premise of my book. i get asked this question every single day. of course, why do we even have this question? can you teach math or science? can you teach music? >> those are processes. >> this is a process too. this is the problem. if there hasn't been a thoughtful process and after 15 years of teaching classes on creativity and entrepreneurship, i decided to put a stake in the ground from inspiration to inplemtation. >> this is something somebody can follow and like learning to play musical instrument you can do that. >> exactly. >> what i focus on is not just the actions but also the

attitudes. there's a mindset different stages of the process that allow you to move through it. >> silicon valley has a new patent office finally. we follow detroit in denver which also have regional patent offices. i asked the director of the new san jose office why it took so long to get to silicon valley. >> actually, the concept of establishing regional offices around the country for the u.s. patent and trademark office is not a new concept. but it is one that took the passage in 2011 to help us to motivate us to open these offices around the country. and through that process we went on a nationwide search. we actually asked the country where should the u.s. pto be opening the brick and mortar -- >> silicon valley is obvious off the top or am i such a fan boy of silicon valley. >> probably both. a lot of analysis we did as a result of over 600 comments

coming from across the country for vying for the pto to open in the backyard weighed in favor in opening in one of the most innovative regions not just the country but the world. >> what's the benefit of opening an office here? they can send it to washington? do they have people specialized inbiotech? >> that's a good point. with the electronic age and our emphasis on electronic filing, we don't want you to bring your papers and filings to the regional office. we want you to take advantage of our electronic processing. the regional office instead provides customizes services for the innovative community, not just here in the silicon valley and san francisco bay area but for the broader state of california and actually a seven-state -- >> you can't just say customized services and we don't want your

patent. what do you do? are we going to surprise you? an inventor just walked in the door? >> we use our satellite offices for three primary goals, one, it's actually help us in attracting and retaining top talent into the u.s. pto to help us in the examination of the patent and the adjudication before the patent judges. so we definitely have a primary goal with establishing and building our workforce regionally. the other goals are bringing the u.s. pto services you can only get at headquarters, you can mail a letter or send an e-mail, you have to fly to alexandria to take advantage of our public search facilities and our interview roomgs which can connect you with patent examiners working across the country or in any of the other regional offices or at headquarters. we can remotely connect you to

them on veeiating the need. >> press here will be back in a moment.

>> we realized our platform is getting a little dated and need to figure out some other way of securing our website and that's when we looked at barracuda to do that. it happens to be something we're familiar with and really this web application attack that tends to be most open threat sector that there is. if i understand there's a threat, we have some chance of beating the hacker. >> find out more at barracuda.com. >> welcome back. if you're just joining us, i mentioned earlier, we are in the mid midst of shuffling studios, we're presenting a recap of our most recent episodes. is the bubble bursting or is

silicon valley going through a long overdo correction? we asked the ceo of rocket lawyer for his thoughts on how companies can survive a down it is turn? >> this isn't the first time -- >> it certainly is not. i've been in silicon valley, 20 year career so far and seen multiple cycles, maybe this is the fourth. what i tend to see work well or companies that three big characteristics, solving a big problem, number one, number two, they are really good stew ards of capital. the third is that they have a shared vision since a purpose within the company so when i think about companies that are solving a big problem, i just stay at an air bnb and it was a fantastic experience. that's a big problem. people travel, rent by the millions rooms and providing people with a way to share their space with others, that's a

pretty big thing. >> do they fit the other two, stew ards of capital and certainly have a purpose? >> the middle one i don't know about because i don't see their numbers. another one which is another household name is uber, it's transportation. that gets really interesting to me because transportation is another really big problem. i look for companies doing that, solving big problems. another company that i am happy to give a shoutout for at rocket lawyer, collaboration is a big issue for businesses. i've used it and like it. and i think it's solving a big problem. when you move on to being good stew ards of capital, that's something again as an entrepreneur myself, i think about every day. i think about if my business is profitable, why isn't it profitable, especially once you've got scale.

warren buffett likes to say the market is a voting machine but in the long term it's a weighing machine and the weights sha s a always the same, profits and future cash flows, you have to be always striving and trending towards profitability in business -- >> you mentioned the fourth cycle of business. what is that? >> i'm curious, i like the phrase, might steal it. >> well, i'm in connection with my own 20-year career. in '98 we had the first one downtourney saw was the asian meltdown we called it at the time. i remember walking in the halls and i was a practicing securities lawyer and a lot of my clients were doing pretty bad and you had the dotcom bubble and housing crisis in 2008. and here we are -- i don't know what this is ultimately -- >> little bit of -- market correction, i thinking about zinga, the ceo left for the

second time and headquarters they bought for $230 million -- >> when i saw they are selling that massive headquarters, used to be seg as in the day, we can remember all of these things. i like young people just fine, it's nice to have a bunch of old people. >> that was charlie moore, ceo of rocket lawyer. one of my favorite things about reporting is the ability to go behind the scenes of justice about anything. and in this case you get an understanding of what it takes to make viral videos. >> this video has received more than a quarter billion views and it's one of just many. there's a video called 100 years of lingerie that we really can't show you on television. certainly not on a sunday morning. now these videos are created by a company called mode media, formerly glam media. here you see behind the scenes as they shoot 100 years of cars. between all of the videos, 100

series just a fraction, mode media brings in 100 million votes -- 400 million viewers every month. you might expect the founder of mode is a fashion ista of some sort from vogue or runways of paris but in fact, a former software engineer at apple. credited with helping to shape the early days of the worldwide web and now shaping among other things, women's fashion. how does an apple engineer end up making videos about 100 years of women's wedding dresses? >> i actually started in theater and tv since he was very young, 7. they recruited me on the engineering and design side. >> has to be a strange path. not many theater people come to be engineers. >> it's all about what you love and follow what you love. someone told me a long time ago, if you're an artist, you can be very technical, like violin and

reverse is true too. i see them the same path for me. >> what have been the most popular ones and surprisingly popular ones, it won't go and it took off? >> the secret sauce we have, we have a studio that produces video and as well as content and 10,000 creators. the secret sauce to technology which makes the answer to your question important is what pops, we actually test every video, even at the episode level out with a live audience online and facebook and other social media. in that period, it's a form tif period. we internally sit around and ask this question, which is, is this going to pop? how big is the viral lift? who will love it? >> we're finding slowly, we are not good at answering that question -- >> but i can't help but notice 100 years of lingerie did fairly

well. i don't know if i can figure out the formula. >>. we sent our photographer to shoot one of your 100 years. you saw behind the scenes on some of that. it was 100 years of cars. >> how did you come up with this? was that a surprise when that popped into and did you not think you were going to be spending so much time in the archives of dresses and cars? >> knowing we're a technology media company, we've been actually going after answering the real question which is post netflix bingeing, is there an equivalent of a night show for that at all. we tried one minute episodes and 17-minute videos and kept trying and we ended up with this 100 years format and it's of course, working. >> "press here" will be right back.

welcome back. as we go through some of our best shows this sunday morning, sonia trous was featured recently in "the new york times" as the newspaper tried to understand housing prices in silicon valley. she's a former math teacher who moved to san francisco and asked a simple question, if housing prices are high and inventory is low, why not build more houses? >> i came from philadelphia where we have tons of housing, plenty of housing. and it was philadelphia was

built for 2.5 million and now we have $1.5 million. it's our problem was we had to tear stuff down. but the upside is that you have plenty of room. you have real power with respect to your landlord. if you're there and pay rent every month and you're not ruining the house and landlord says i want to raise your rent $100, do it, i'm leaving. that's a real negotiation. landlords kind of -- you keep your renters because it's the devil you know on both sides and the general rent level is sort of the same no matter where you are, that's the real power with respect to landlords that ultimately we need and don't have here. we're in a shortage. >> you probably can't build enough high rises in san francisco to absorb every single person coming in but you could start. >> yeah, that's the other thing too. actually the price aspect of this argument is a little disstraks. i like to describe the

organization as the increased capacity arm of the anti-displacement movement. every single time you build a new unit, you reduce the placement by how many people move into it. and every time you build houses you're able to accommodate however many people you build houses for. >> does the organization advocate on behalf of folks who want housing, like low income people? >> that is not our main -- there are other people already doing that. this is the -- >> i know, ironically, it's like tulgly very astonishing. there are always going to be people who can't afford their own houses, if you're not working out there -- plenty of middle class people in san francisco who have a lot of trouble. >> exactly. >> that's what so astonishing about this situation, it's appropriate for there to be social service agencies that help people who are really low income or no income and give

them subsidy. but what we see is that as hud disappeared from funding and state shutdown redevelopment, those organizers are interfering with the ability who can buy housing to do it. you know, like a lot of people do have jobs and make good wages -- >> the irony in san francisco, as you know, there's construction everywhere, usually plenty of room for them to develop and grow and move around and get tax breaks. >> you mean office? >> yeah, office space. when it comes to housing, there's a lack of it across the board. we have a homeless issue that's festering and keeps growing in stat tour and san francisco there's a report just recently middle class can't afford it because of the cost. beyond high rises, any other types of options? >> yeah, definitely. building, this is a bay area wide problem. we have all different -- there's all kinds of suburbia and

parking lots everywhere. >> entry level house according to mercury news in san jose, $833,000. >> that's insane. >> that was sonja trauss. now to the man behind one of the least likely restaurants in the world bubba gump's, it's a restaurant based on a movie. go figure. >> paramount came to you and said we want to make a restaurant based on forest gump? >> yeah. >> and you thought what? >> well, like we told everybody in those days, approach us with an idea, we think that's a great idea and the reality is we didn't know. but the market research really confirmed to us that there was an unforced translation from movie to restaurant. i can't tell you how many times i would have customers come up in restaurants and say i knew you had the restaurant company but didn't know you had the restaurant. >> two people in our newsroom assumes the restaurant had

somehow come first and forest gets involved in these histor historical items. they assumed that was one of them as well? >> greatness defined right there. >> you said unforced idea. why do you think it worked? >> because it makes sense that a restaurant would exist. they do create a shrimp company in the movie and there's so many good feelings and there are some dark sides to that film. but in the end it was a very popular movie and based on really good feelings and as a result, it made sense there would be a restaurant since there was a sh vim p company. >> hollywood has been back with other restaurant ideas or businesses based on -- what have you turned down? >> i have turned down many. but the reason is frankly is because there wasn't an unforced translation, didn't make sense and that's one of the problems that some of our more notorious economy tigs ran into.

i think planet hollywood had a hard time creating a bridge from its concept to a restaurant. >> you have to remember in the restaurant business, it's hot food hot, cold food cold, service with a smile and pleasant clean surroundings. >> god, that's hard. >> it is hard and hard to do consistently. and that's really the key thing. >> but there must have been other pixar movies that could have made great restaurants, you could solve that problem of great food, great service. >> what would you make, if you could make any movie into a restaurant again? >> i guess i would think about the crusty crab on spongebob -- >> whoa. >> great. >> and people who objected, there's only one restaurant chain ever based on a movie. yeah, there is -- might actually be a crusty crab or something -- >> probably is. >> there are restaurants named after restaurants that have been in movies but no chain that is actually been become a restaurant.

there is this curious idea of it has to be a street and i think it's where planet hollywood came into trouble. when planet hollywood cleveland -- but cleveland is a nice town or peoria, it was no longer you didn't go to it in london or in new york. can you -- i realize you're not in charge of bubba gum p anymore, there has to be pressure to keep it special at the same time. >> the whole idea was to create a brand that would stand on its own. it was the name that brings them in but it's the experience that brids them back. we had a 94% intent to repeat, which is exceedingly high in our business. the reason was we did deliver what we were trying to do. >> we'll be right back.

that's our show for this week. we'll be back to a regular schedule and our very own studio

very soon. thank you for making us part of your sunday morning.

damian trujillo: hello and welcome to "comunidad del valle." i'm damian trujillo and today, hip-hop for the kids who could really use the pick-me-up. plus, a one-man act by paul flores, here on your "comunidad del valle." announcer: nbc bay area presents "comunidad del valle" with damian trujillo. damian: we begin today with biking and bicycling. with us on "comunidad del valle" is carlos velazquez with the silicon valley bicycle coalition. welcome to the show, carlos. now, you just scolded me a little while ago off camera because i don't bike to work. what's the big deal? talk about why it is a big deal, carlos. carlos velazquez: well, silicon valley bicycle coalition, our main goal is to work with city leaders to make our streets and trails safer. and, also, to do more to--host programs and activities to encourage more people to get on their bike. damian: now, it's not just about the environment, right?