The following statement is attributed to Kate Tummarello, Executive Director of Engine, regarding today’s introduction of the Unleashing American Innovators Act of 2021.
Statement:
“Engine is proud to support the Unleashing American Innovators Act of 2021, a bill that would expand startup access to the U.S. Patent and Trademark Office’s resources and services. The legislation, introduced by Senators Patrick Leahy (D-VT) and Thom Tillis (R-NC), would lower barriers to entry for underrepresented founders interested in seeking high-quality patents and enhance the PTO’s presence across the country so that the government can do an even better job of meeting innovators where they are at.”
The Big Story: FTC study scrutinizes small tech deals. The Federal Trade Commission is hinting that it may take a harsher view of tech companies’ acquisitions of startups.
WithClutch is a software company working to provide access to easily refinance car loans through credit unions. Based in San Francisco, Calif., Nicholas Hinrichsen—Co-Founder and CEO—told us how he founded WithClutch, the challenges he’s faced while navigating the immigration system as an entrepreneur, and how his company has benefitted from the innovative environment provided by a regulatory sandbox in Arizona.
California is about to enact a law that would keep companies from restricting the ability of their employees to speak out about discrimination or harassment in the workplace.
Today, Engine, along with the Charles Koch Institute and Startup Genome, issued a report looking at the overall health of the startup ecosystem. We hope this report can serve as a resource for policymakers considering a wide range of policy issues that impact early-stage companies across the country.
This week, during the inaugural Patent Quality Week, Engine, the Consumer Technology Association, and ACT | The App Association hosted a webinar to allow more of you to hear directly from these startup leaders across the country about the exciting work they are doing, and about how patents and abusive patent assertion affect their ability to grow and succeed.
Engine has released a new report that outlines why it is so important for the government to prioritize quality and balance when it comes to patent policy.
California collecting input on privacy law. The process of implementing a new California privacy law kicked off in earnest this week as state Attorney General Xavier Becerra’s office held its first public forum on the issue.
A flood of perspectives on privacy. Late last week, the federal government got dozens of comments from companies, trade groups, non-profits and more on how to approach consumer privacy online. As part of the response to a request for comments on a broad framework for consumer privacy, Engine submitted comments to the Commerce Department’s National Telecommunications and Information Administration, outlining the ways in which various privacy proposals and laws affect startups.
Engine filed an amicus petition to the Supreme Court of the United States on Tuesday, November 13th to urge the court to consider the case. In our brief, we argue that the Federal Circuit’s decision in the case conflicts with the Supreme Court’s ruling on patentable subject matter eligibility.
The Big Story: Patent trolls aren’t a fairy tale. Last week, in a speech to the Eastern District of Texas Bar Association, the United States Patent and Trademark Office Director Iancu told a room full of trial lawyers that there is no patent troll problem and that it's just a "narrative" being pushed by large companies trying to decrease innovation and competition. This week, we pushed back on that claim, explaining that abusive patent litigation is “a real threat and one every startup founder dreads.”
Pushing 5.9 GHz for 5G. The federal government is seeing more and more pressure to free up airwaves currently reserved for vehicle safety so that they can be used for the next generation of wireless networks, especially as different vehicle safety technologies that don’t depend on that spectrum are becoming commonplace.
The Big Story: A second Senate privacy hearing. The Senate Commerce Committee held its second hearing on online privacy this week, which included testimony from privacy advocates pushing for federal privacy legislation.
A year after the Supreme Court’s unanimous decision in TC Heartland LLC v. Kraft Food Group Brands LLC, however, Marshall may be returning to the normalcy of tumbleweeds and prairie, as NPEs who once filed there flock instead to other jurisdictions.
Engine looks forward to working with President Trump’s for nominee Andrei Iancu for the position of the Director of the United States Patent and Trademark Office (USPTO). As a non-profit advocacy and research organization that supports startups, we understand what an important position the Director of the USPTO is to protecting the innovation ecosystem.
The First Comment Period for the FCC NPRM on Net Neutrality Closes. Monday was the deadline for the first round of comments to be filed with the Federal Communications Commission (FCC) regarding its notice of proposed rulemaking (NPRM) that addresses the 2015 Open Internet Order. Engine was one of over 10 million groups and individuals to file comments with the Commission. The deadline for reply comments extends to August 16. In its submission, Engine explained the need for clear regulations to protect startups from threatening behavior by ISPs and incumbents. “The NPRM’s indifference to the ISP abuse of their terminating access monopoly power is incredibly dangerous to entrepreneurship. Without bright line rules banning anti-competitive ISP practices, startups will be put at a structural disadvantage in competing with well-heeled incumbents, causing venture investment to dry up and innovation to suffer,” Executive Director, Evan Engstrom, wrote. The White House, which has been mostly mum on the topic, also weighed in on the debate this week. “The best way to get fair rules for everyone is for Congress to take action and create regulatory and economic certainty,” deputy White House Press Secretary, Sarah Huckabee Sanders, said in a statement.
Today, the Supreme Court delivered a blow to patent trolls by unanimously reversing the Federal Circuit’s decision in TC Heartland v. Kraft Foods Group Brands LLC. The high court ruled that defendants in patent cases can only be sued where they are incorporated or have a regular and established place of business. The decision will make it significantly harder for patent trolls to file lawsuits in jurisdictions that patent-friendly but otherwise unrelated to the claims at issue—most notably the Eastern District of Texas, where almost forty percent of patent cases were filed last year.
Today, Engine hosted Austin Meyer, the director of the new documentary “The Patent Scam,” at the Capitol Hill Visitor Center. The screening and subsequent discussion with real victims of patent litigation abuse demonstrated the extent that the U.S. patent system is failing to protect small businesses and startups from patent trolls.
After almost five years of legal volleying, the U.S. Supreme Court finally issued a decision in the highly anticipated Apple v. Samsung design patent case late last year. On Tuesday, Dec. 5, the court delivered a unanimous decision in favor of Samsung, finding that damages for design patent infringement may be limited to revenues attributable to a component of an article of manufacture rather than profits from the entire article. While this is an important victory for startups and innovators—from global corporations to inventors toiling in garages—courts must still work to provide the guidance and clarity necessary to prevent bad actors from abusing the patent system to the detriment of innovation. And they have a new opportunity to do so: On Feb. 7, the U.S. Court of Appeals for the Federal Circuit took a significant step in that direction by remanding the Apple v. Samsung case to the Northern District of California court.
Under Director Michelle Lee, the Patent Office has made real strides toward fixing patent quality. While much work in that area remains to be done, we are encouraged by the steps she and her team have taken and are pleased that she will remain in her role in the incoming Administration so that this important work can continue. Startups in particular rely on a well-functioning patent system, and under Director Lee's leadership, the Patent Office has welcomed the startup community to play a role in that debate. We look forward to continuing working with her to ensure that that the patent system promotes rather than hinders innovation.
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