Startups to face hiring challenges following independent contractor rule
What’s in the AI executive order, and what does it mean for Startups?
Startup News Digest 04/28/23
The Big Story: Over 65 startups call for uniform federal privacy law. This week, startups are calling on Congress to pass a federal privacy law that takes the startup ecosystem into account. A coalition of startups and support organizations across 26 states sent a letter to Congress urging lawmakers to pass a law that creates uniformity, promotes clarity, limits bad faith litigation, accounts for the resources of startups, and recognizes the interconnectedness of the startup ecosystem. The letter comes as states continue to enact their own unique data privacy laws, and as a Congressional committee explored the problems posed by a sectoral federal privacy landscape in a hearing this week.
Startup News Digest 02/17/23
The Big Story: Section 230, privacy, encryption in crosshairs at kids safety hearing. The Senate Judiciary Committee held a hearing Tuesday on protecting children’s safety online, where lawmakers suggested changes to several issues important to startups, like Section 230, data privacy, and encryption. The wide-ranging proposals appear conceived with the largest tech companies in mind, but they would affect all Internet companies, especially startups. The hearing comes amid efforts from policymakers at all levels of government aimed at safeguarding young Internet users that could carry unintended negative consequences for startups without necessarily protecting children.
Intellectual property scams target startups, and how policymakers can help
Bad actors are constantly looking to trick unsuspecting startups into unnecessarily giving up their already-limited resources. One scam gaining in popularity is to impersonate government officials and ask startups for payment to “renew” their existing trademarks, and it demonstrates how intellectual property systems can be weaponized against startups.
The Patent and Trademark Office should work for everyone
You might not realize it, but whether you’re a startup founder, a digital entrepreneur, or a casual technology and Internet user—what the U.S. Patent and Trademark Office (USPTO) does impacts you and the agency needs to be listening to you. That’s why Engine filed comments this week on USPTO’s draft strategic plan, suggesting ways the agency could improve its plans to support all U.S. innovators, creators, and entrepreneurs.
Startup News Digest 10/28/22
The Big Story: Engine releases report on the role of acquisitions in the startup ecosystem. Engine, in partnership with Startup Genome, released a new report this week examining the role exits play in the startup ecosystem, highlighting the importance of exits via acquisition, and emphasizing the experience of founders that have had their companies acquired. The report—“Exits, Investment, and the Startup Experience: the role of acquisitions in the startup ecosystem”—should equip policymakers with a solid foundation from which they can advance pro-innovative policies that startups need to thrive.
Startup News Digest 10/21/22
The Big Story: Judge strikes down Maryland tax on digital advertising. A Maryland judge struck down the U.S.’ first tax on digital advertising, which faced vocal challenges including from technology companies and would have resulted in taxed companies passing down its cost to customers, including startups. In a ruling on Monday, the court found the tax, implemented by Maryland lawmakers to raise revenue, unconstitutional and a violation of the Internet Tax Freedom Act.
Startup News Digest 10/14/22
The Big Story: Proposed independent contractor rule could make hiring harder for startups. This week the Department of Labor (DoL) issued a proposed rule that is likely to impact how early-stage startups build their teams. The DoL’s proposed rule on worker classification would limit who can be considered an independent contractor and comes shortly after the Federal Trade Commission (FTC) announced similar enforcement priorities for the gig economy. As we shared in a recent blog post, the rule could limit startup flexibility in their hiring decisions, which could particularly impact growing companies with lean budgets.
USPTO Public Advisory Board Must Represent The Public
The USPTO does not get all of its advice from the PPAC — and it shouldn't. But especially for an agency with limited avenues for public engagement, it's essential that when conversations are happening — including at the PPAC — policymakers make sure everyone gets a voice in how the patent system works.
Startup News Digest 09/30/22
The Big Story: Network access fee debates heat up worldwide. This week, European telecom companies redoubled their push to make large Internet companies pay based on the traffic they generate, a policy that would undermine net neutrality principles and negatively impact the broader Internet ecosystem. The push comes after months of agitating by Internet service providers (ISPs) for the payments, called network access fees, and amid a growing number of jurisdictions that have taken steps toward such policies, including South Korea.
Startup News Digest 09/23/22
The Big Story: SBIR reauthorization on the horizon, heads to the House. After months of negotiations, a key grant program for startups is expected to be reauthorized just in time for its scheduled expiration at the end of the month. The House is expected to vote next week to reauthorize the Small Business Innovation Research (SBIR) program, following a vote in the Senate to reauthorize the program for three years this past Tuesday. The program serves as a critical funding source for many startups engaged in research and development (R&D).
Proposal to Redefine Patent Eligibility and What it Means for Startups
Last month, Senator Tillis (R-N.C.) introduced a bill to change the rules that govern what can be patented. Briefly, current patent eligibility law prevents companies from trying to own basic ideas and from trying to preclude others from building new businesses or innovations that rely on those underlying ideas.
Startup News Digest 09/16/22
The Big Story: Startups are collateral as policymakers talk past each other on tech policy. Over the last week we’ve seen several tech policy conversations where contradictory, party-line talking points are on full display that—if taken seriously as policy ideas on everything from privacy, to national security, to content moderation, and more—would make life much harder for thousands of startups across the country. Lawmakers’ competing and mutually exclusive visions for the Internet doesn’t stop them from threatening policy changes that would alter the way tech companies, including startups, have to operate, however, as we highlight in a new blog post.
Startup News Digest 09/09/22
The Big Story: SBIR reauthorization remains at a standstill. Startups await the fate of the Small Business Innovation Research (SBIR) program as lawmakers continue to deliberate its reauthorization ahead of its fast-approaching September 30 expiration. With fierce support from advocates and innovators—who recognize the positive impact the program has on the innovation ecosystem—alike, this critical funding stream for R&D and commercialization risks drying up without congressional action.
Startup News Digest 08/26/22
The Big Story: Biden administration unveils student loan relief plan. After months of deliberation, President Joe Biden announced a three-part plan aimed at easing student loan debt, a move that could lower barriers for entrepreneurship in the U.S. The announcement—fulfilling a 2020 campaign promise—will cancel up to $10,000 in federal student debt for many borrowers and up to $20,000 for Pell Grant recipients for those that earn less than $125,000 per year or $250,000 for households. It also includes steps to cap monthly payments, improve the forgiveness programs for borrowers who work in public service, and increase accountability around skyrocketing college costs.
Startup News Digest 08/19/22
Startup Advocacy Week and Congressional Startup Day underscore the importance of pro-innovation policy. Startups are key drivers of innovation, they spur job growth, and invigorate the U.S. economy. We at Engine are lucky to work with a vast network of startups across the country who know, first-hand, how essential pro-innovation policies are to their success—and those policies can only become a reality when policymakers invite startup founders to the table to listen to their experiences and hear about their needs. Those very conversations took place during this Startup Advocacy Week and Congressional Startup Day.
Startup News Digest 08/12/22
The Big Story: Patent policy conversations need startup voices. Policymakers are continuing to evaluate several aspects of the patent system—one of many areas where policymakers need to account for startup voices and experiences to craft policy that promotes their success. This summer, IP subcommittees in both the Senate and the House held hearings about the Patent Trial and Appeal Board (PTAB)—a venue within the Patent and Trademark Office (PTO) that can take a second look at likely-invalid patents and weed out those that should not have issued.
Startup News Digest 08/05/22
The Big Story: Immigration reform is key for innovation, competitiveness. Pressure is building on lawmakers to address flaws in the country’s immigration system that keep the tech sector—including startups—from having the talent it needs. Following the recent passage of a sweeping competitiveness package, the Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) and Science Act, members of the tech industry are calling to attention the need for immigration reform to keep the sector competitive.
Statement on Patent Eligibility Restoration Act
The following statement is attributed to Kate Tummarello, Executive Director of Engine, regarding the introduction of the Patent Eligibility Restoration Act of 2022:
Statement:
“The Patent Eligibility Restoration Act would open doors to the type of weak, overbroad patents that preempt innovation and harm competition. It would allow a few companies to use the patent system to tie up the fundamental building blocks startups currently rely on to build and grow, exposing startups to more threats of litigation over low-quality patents. As Congress continues to evaluate legislation in this area, we look forward to continuing to work with them toward proposals that can promote startup success.”
