The Big Story: Congress must act after Privacy Shield rollback leaves startups without certainty. A Senate panel held a hearing this week to examine ways of creating a new transatlantic data transfer pact after Europe’s top court struck down the EU-U.S. Privacy Shield earlier this year. The cross-border data pact allowed U.S. companies to process and store European users’ data in America, and the rollback of the agreement is already having adverse effects for thousands of startups and tech companies.
Digital Services Taxes Will Harm Startups Across the World
TLDR: As intergovernmental organizations and countries continue to discuss implementing their own digital services tax (DST) frameworks on multinational Internet companies, France has notified large online platforms that they must begin paying the country’s levy this month while Canada recently announced plans to impose its own DST. Although most DSTs under consideration—as well as those that have already been implemented—target large, mostly U.S.-based tech companies, the startup community remains concerned that the burden of the taxes will be passed on to smaller companies and users in the form of increased costs for products and services.
Startup News Digest 12/04/20
The Big Story: Courts deal blows to White House policies limiting foreign-born talent. Two court rulings this week struck serious blows to the Trump administration’s efforts to restrict legal immigration and limit U.S. companies’ access to foreign-born talent. But while the incoming Biden administration is likely to reverse course on many of President Donald Trump’s immigration policies, entrepreneurs and U.S. tech companies remain concerned about the White House’s ongoing efforts to clamp down on visa programs for high-skilled workers—like H-1B visas—that are vital to the U.S. tech sector.
Last Minute Moves on Section 230 Would Be Selling Out Startups
TLDR: As the year winds down, Republican policymakers are making multiple eleventh-hour attempts to undermine a foundational Internet law that has drawn the ire of President Donald Trump in the lead up to and aftermath of the 2020 election. This week, the Senate Judiciary Committee is slated to consider a bill to reform Section 230—the law that creates intermediary liability limitations for online services that host user-generated content—and the Trump administration is reportedly threatening to veto the annual defense authorization bill if it does not include Section 230 reforms.
Limiting High-Skilled Visas Hurts U.S. Startups
TLDR: As the technology industry looks to President-elect Joe Biden to overturn the Trump administration’s immigration policies limiting access to high-skilled foreign talent, startups are continuing to pressure Congress to defend and expand the H-1B visa program. Tech companies rely upon the contributions of high-skilled foreign-born workers to drive innovation, but limiting access to this talent—particularly during the pandemic—could harm the long-term growth of U.S. startups.
Startup News Digest 11/20/20
The Big Story: FCC opens up unlicensed spectrum for Wi-Fi. The Federal Communications Commission voted this week to free up spectrum in the 5.9 GHz band for unlicensed use, a move that will add 45 MHz to the 5GHz spectrum band currently used for Wi-Fi networks. The spectrum had been allocated to the U.S. Department of Transportation nearly two decades ago but had been largely unused. The move to open up spectrum in the 5.9 GHz band will increase Internet speeds and connectivity once devices are able to support it, largely because it’s near the portion of the 5GHz band already used for Wi-Fi. And, as FCC Commissioner Mike O’Rielly noted in a statement, “most equipment will be able to take advantage of this spectrum with only a quick software upgrade.”
Despite Big Tech Focus, Startups Stand to Lose in 230 Debate
TLDR: A Senate panel is holding a hearing this morning with the CEOs of Facebook and Twitter to discuss Section 230 and allegations of political bias in the context of the 2020 presidential election. Although policymakers are continuing to scrutinize Section 230 because of supposed censorship by the largest tech companies, any changes to the law would have an outsized impact on U.S. startups that rely on the bedrock Internet law in order to host and moderate user content without the fear of potentially crippling lawsuits.
Startup News Digest 11/13/20
The Big Story: Recognizing the contributions of veteran entrepreneurs. Each year, almost 200,000 service members transition to civilian life. Armed with leadership skills, technical knowledge, and problem-solving capabilities, many of these veterans choose to launch their own startups and small businesses as a way of using their military experience to further serve the public good. In fact, the U.S. Small Business Administration has found that veterans “are at least 45 percent more likely than those with no active duty military experience to be self-employed.” With more than 2.5 million U.S. businesses owned by veterans—approximately 9.1 percent of the nation’s private sector companies—it is especially critical that these entrepreneurs and founders receive the attention and support that they need to thrive. As we reflect on Veterans Day and the contributions of those who have served our country, Engine wanted to take the opportunity to also celebrate just some of the contributions of veteran-led startups across the United States.
Congress Turns Attention Back to COVID Relief During Lame-Duck Session
TLDR: As Congress returns to work following President-elect Joe Biden’s victory last week, policymakers may finally be turning their attention back to providing economic relief to Americans affected by the coronavirus pandemic. Small businesses and U.S. workers have already waited months for policymakers to offer a viable stimulus package, and it’s well past time for lawmakers to unite behind a proposal that provides long-term support for the nation’s startup ecosystem.
Startup News Digest 11/06/20
The Big Story: Online platforms in the spotlight over election claims. With temperatures running high over the election, Internet companies have found themselves again in the spotlight for their content moderation decisions, especially amid premature claims of victory and unsubstantiated claims about voter fraud.
Startup News Digest 10/30/20
The Big Story: Where Trump and Biden stand on tech policy. With the election in full swing, President Donald Trump and Democratic presidential nominee Joe Biden are wrapping up their respective campaigns. Ahead of the impending election, we wanted to take a look at where the major party candidates stand on some critical tech and startup issues.
Startups, Not Big Tech, Benefit the Most from Section 230
TLDR: A Senate panel is preparing to hold a hearing tomorrow with the CEOs of Facebook, Google, and Twitter to discuss Section 230 and allegations of political bias by big tech firms. Although Section 230 has drawn scrutiny from policymakers because of the actions of large Internet companies, the law allows platforms of all sizes to host user content and engage in content moderation without the fear of potentially crippling lawsuits. Any changes to the law will have an outsized impact on the U.S. startup ecosystem.
Startup News Digest 10/23/20
The Big Story: COVID relief talks stall as startups still wait for support. The Trump administration and Congress are continuing to discuss the framework of a bipartisan coronavirus relief package to support struggling small businesses and Americans, although the lack of progress on an agreement means that a stimulus deal is unlikely until after the presidential election on Nov. 3rd. With startups and small businesses in need of economic support to weather the pandemic’s economic uncertainty, entrepreneurs are calling for policymakers to provide more-targeted relief proposals in the much-needed stimulus package being discussed.
IP Recap - 10/21/20
Last month, the United States Patent and Trademark Office (“USPTO”) announced a reorganization which, among other things, eliminated the positions of Deputy Commissioner and Associate Commissioner for Patent Quality. This is the latest in a series of policy developments which have had the effect of deprioritizing patent quality in the U.S.
White House Efforts To Undermine Visa Programs Will Harm Startup and Tech Innovation
TLDR: The U.S. tech industry and startup ecosystem rely upon the important contributions of high-skilled foreign talent to drive innovation and economic growth. But the Trump administration’s efforts to undermine the country’s visa programs by suspending work visas for immigrants and attempting to narrow eligibility for H-1B visas will harm domestic innovation and drive qualified talent to other countries.
Startup News Digest 10/16/20
The Big Story: Spotlight on content moderation ahead of election. With the presidential election weeks away, and Americans increasingly relying on Internet services amid the ongoing coronavirus pandemic, digital platforms are working overtime to identify and moderate user-generated content that could cause real-world problems. But policymakers are turning up the heat on the already difficult and contentious issue of content moderation, with platforms’ efforts to combat the spread of conspiracy theories and misinformation leading to partisan pushback and claims of supposed censorship.
Startups Need Lawmakers to Find a Roadmap for Recovery
TLDR: U.S. startups are in need of further economic relief to support their business operations amid the coronavirus pandemic. In a recent survey conducted by Engine, a majority of respondents who received federal assistance said the financial support they obtained was insufficient, and entrepreneurs voiced support for a variety of more-targeted policy proposals—such as equity investments, forgivable loans, a startup fund, tax credits, and grants—that could help provide them with the assistance they need during this difficult time.
Startup News Digest 10/09/20
The Big Story: House antitrust report suggests sweeping changes to tech landscape. After spending the past 16 months investigating allegations of anti-competitive practices by Amazon, Apple, Facebook, and Google, the House Judiciary Committee’s Democratic leadership this week released a 449 page report proposing that lawmakers overhaul existing U.S. antitrust laws, including limiting large tech firms’ ability to acquire startups. While policymakers proposed taking a variety of steps to address claims of market dominance and abuse—such as breaking up the largest firms and providing more regulatory authority and resources to federal agencies overseeing the tech industry—lawmakers must remain vigilant that their overall recommendations do not harm competition by hindering startup growth and innovation.
Supreme Court Case on Interoperability Will Have Significant Ramifications for Startups
TLDR: The U.S. Supreme Court will hear argument this week in the almost decade-long dispute between Google and Oracle over the permissible use of software interfaces—known as application programming interfaces (APIs). Startups and developers rely on APIs as a fundamental tool for developing new software and enabling interoperability. Oracle is asking the Court to upset a long-held understanding that APIs cannot be subject to copyright infringement claims. And a ruling in Oracle’s favor would expose U.S. startups and software developers to sizable new risks, generate more litigation, and increase barriers to startup growth and innovation.
Startup News Digest 10/02/20
The Big Story: Congress must keep startups in mind while reviewing the DMCA. The House Judiciary Committee held a hearing this week about § 512 of the Digital Millennium Copyright Act (“DMCA”)—a critical area of the law for startups which provides a balanced and certain framework for addressing allegations of online copyright infringement. As we have explained, if Congress were to consider any revisions, it is essential they carefully weigh how important § 512 is to startups. While much of the Committee’s hearing ignored those needs, there were indications some lawmakers and witnesses are still mindful of startups and the users and Internet-enabled creators who rely on them.