Startup News Digest 03/20/20

The Big Story: Websites working to combat COVID-19 misinformation. Large social media platforms warned this week that more user-generated content could be removed for policy violations as Internet companies increase their reliance on automated software to flag and remove harmful content in the midst of the COVID-19 pandemic. But despite the necessary move towards automated detection tools, online companies of all sizes are working to carefully balance concerns about their employees’ health with heightened efforts to combat the spread of false information, especially about the virus. 

In a blog post earlier this week, YouTube said it will “temporarily start relying more on technology” to compensate for work normally done by human reviewers who are quarantining themselves. Twitter also released a statement saying that it will rely more on its automated content moderation tools to enforce the site’s rules. 

But websites are also upping their efforts to remove misinformation about the coronavirus specifically. Major Internet companies—including Facebook, Google, LinkedIn, Microsoft, Reddit, Twitter, and YouTube—took the major step of issuing a statement about their joint efforts “combating fraud and misinformation about the virus, elevating authoritative content on our platforms, and sharing critical updates in coordination with government healthcare agencies around the world.” Facebook and Twitter also announced expanded content moderation efforts to disseminate information from verified health sources, while working to remove content that spreads misinformation or racist tropes about the virus’s origin. 

As more people rely on online services—whether large-scale social media platforms or video-messaging startups—to get the latest news, connect with their communities, and shop and work remotely, Internet companies of all sizes are proactively working to support Americans through this uncertain time. 

Policy Roundup:  

Economic relief for small businesses affected by coronavirus closures. U.S. Small Business Administration Administrator Jovita Carranza issued updated criteria for small businesses seeking emergency funding to remain open through the coronavirus pandemic, including making it easier for states to access SBA disaster assistance loans. President Donald Trump also called for the SBA to provide U.S. small business owners as much as $50 billion in loans to help them remain afloat during the ongoing economic fallout from the virus, and the Trump administration’s proposed $1 trillion economic rescue plan would set aside $300 billion to help small businesses avoid layoffs.

Transportation startups at risk of COVID-19 economic fallout. Venture investors said transportation-focused U.S. startups are at a higher risk of economic fallout as a result of the coronavirus pandemic. The transportation startups most likely to be affected are ones that recently closed funding rounds or have recently started to raise funds, and one investor said he is urging companies to draw down their existing credit lines.

Maryland state legislature passes digital advertising tax. The Maryland General Assembly attached a digital advertising services tax to legislation—H.B. 732—that would increase the taxes on most tobacco products sold in the state. The legislation would impose a first-of-its-kind state tax on companies that profit from digital advertising services, implementing anywhere from a 2.5 percent to 10 percent levy derived from the companies’ annual gross revenue. The bill passed shortly before the Maryland legislature went on recess and is now headed to Governor Larry Hogan for his approval.

Engine asks Supreme Court to correct patent review and appeal process. Engine, Unified Patents, CableLabs, The Niskanen Center, and The R Street Institute filed a joint amicus brief with the U.S. Supreme Court this week asking the Court to correct an imbalance in patent review and appeal. The case—General Electric Co. v. United Technologies Corp.—concerns the streamlined, cost-effective patent validity review procedures created by Congress in 2011 to improve patent quality.

At-home workers turning to online apps. Remote conferencing and workplace messaging services such as Zoom and Slack have seen a sharp spike in use as a result of more Americans working from home to help “flatten the curve” for the coronavirus. Microsoft also reported that its Teams chat and conferencing app has seen a 37.5 percent increase in use from last week, and the company said it is updating its AI features to help improve its remote capabilities moving forward.

Startup Roundup:

#StartupsEverywhere: Wichita, Kansas. Wichita—the birthplace of Pizza Hut and White Castle—has long been a hub of entrepreneurial activity in central Kansas. One of the exciting tech startups that calls the Emerald City home is Quicc, a video transcription tool that lets video creators easily caption their content. We recently spoke with Jason Toevs—Quicc’s founder and CTO—to learn more about the platform’s video transcription tool, Wichita’s startup community, and how the company is working to protect user data across the world.