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NEWS FEED

Startups Stand the Most to Lose after Privacy Shield Rollback
Weekly Digest, Digest, Privacy & Data Security The Engine Team Weekly Digest, Digest, Privacy & Data Security The Engine Team

Startups Stand the Most to Lose after Privacy Shield Rollback

TLDR: Europe’s top court last week struck down Privacy Shield, a data transfer pact between the European Union and the United States that allowed U.S. companies to process and store European users’ data in America. The decision, which could have an outsized impact on U.S. startups, stems from U.S. government surveillance programs that European courts have repeatedly found issues with—especially in the wake of the disclosures from former National Security Agency contractor Edward Snowden in 2013. Without the U.S. scaling back its sweeping surveillance programs, however, it’s unlikely that the EU and U.S. will be able to agree on a new framework to replace Privacy Shield—something that growing startups need to reach potential users across Europe.

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Support Entrepreneurship by Participating in Congressional Startup Day
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Support Entrepreneurship by Participating in Congressional Startup Day

TLDR: We’re now a month out from Congressional Startup Day, an event highlighting the importance of startup activity across the country. This annual event connects members of Congress with startups in their states and districts to learn more about the successes and challenges of being an entrepreneur. With the coronavirus pandemic having an outsized impact on U.S. startups, Congressional Startup Day serves as a timely opportunity for members to learn more about how they can support and highlight the work of their local entrepreneurs.

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Next Coronavirus Relief Package Should Address Startup Concerns
Weekly Digest, Digest, Access to Capital The Engine Team Weekly Digest, Digest, Access to Capital The Engine Team

Next Coronavirus Relief Package Should Address Startup Concerns

TLDR: When Congress returns from recess later this month, policymakers must ensure that they are effectively supporting startups in their fourth coronavirus relief package. In order to protect our nation’s startup ecosystem, however, Congress needs to look beyond currently available small business loan programs and examine other policy proposals that will enable startups and entrepreneurs to survive the pandemic’s economic fallout.

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Startups Need Clarity When it Comes to Digital Currencies
Weekly Digest, Digest, Future Tech The Engine Team Weekly Digest, Digest, Future Tech The Engine Team

Startups Need Clarity When it Comes to Digital Currencies

TLDR: Telegram paid $18.5 million and returned the proceeds of its coin offering back to investors as part of a settlement with the U.S. Securities and Exchange Commission. The agency sued the firm last year for raising $1.7 billion through an initial coin offering to fund the development of its blockchain project, known as the Telegram Open Network. The settlement comes as U.S. cryptocurrency firms continue to seek regulatory certainty for the industry, including clear guidelines for digital coin offerings.

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Patchwork of Digital Services Taxes Threatens U.S. Startups
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Patchwork of Digital Services Taxes Threatens U.S. Startups

TLDR: Federal officials are sending conflicting messages about their continued participation in global talks about the creation of a framework for digital services taxes (DSTs). While many of these taxes are targeted at large Internet companies, there are concerns that the startup community will be harmed by the trickle-down effect of increased costs for services and products to offset the taxes.

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COVID-19, User Data, and the Need for a Federal Privacy Law
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COVID-19, User Data, and the Need for a Federal Privacy Law

TLDR: Protecting the collection and use of consumers’ personal information continues to be at the top of mind for lawmakers, with new efforts in Congress looking to address the use of personal information in contact tracing apps amid the coronavirus pandemic, and unnecessarily tying the use of targeted online ads to an unrelated intermediary liability law. 

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Online Content Moderation in the Hot Seat
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Online Content Moderation in the Hot Seat

TLDR: Amid the coronavirus pandemic and critical ongoing conversations about race-based inequalities and injustices, Americans are increasingly turning to the Internet to learn, share, and stay informed. That's shining a brighter light on the ways in which Internet platforms handle all kinds of content—including misinformation, violent speech, and alleged infringement from the country's highest office.

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DMCA’s Safe Harbor Provisions Allow Startups to Grow and Thrive 
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DMCA’s Safe Harbor Provisions Allow Startups to Grow and Thrive 

TLDR: The U.S. Copyright Office released a long-anticipated report last week which found that the system for resolving claims of online infringement should be updated. While the agency said that it was not recommending any wholesale changes to the current process, it has advocated for updates that would substantially alter the framework for startups that host user-generated content. With more Americans than ever before relying on digital services and online resources to create and share content during the pandemic, it’s critical for lawmakers and federal officials to carefully balance any changes to the law that could have an outsized impact on startups and their users.

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Encryption Is Critical for Startup Security, Despite DOJ Spotlight
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Encryption Is Critical for Startup Security, Despite DOJ Spotlight

TLDR: Federal officials are once again calling for Internet companies of all sizes to undermine secure end-to-end encryption by creating intentional vulnerabilities in their products to facilitate law enforcement access to user data, a move that would risk user privacy and security. The renewed push comes after the Justice Department announced that it unlocked two iPhones belonging to the shooter in last year’s Pensacola Naval Air Station shooting and found that he had been working with al Qaeda.

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Combating the Spread of COVID-19 Misinformation
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Combating the Spread of COVID-19 Misinformation

TLDR: As people across the globe continue to depend upon digital services in the midst of the coronavirus pandemic, Internet firms are working overtime to keep their platforms free of misinformation related to the virus. But the rapid proliferation of COVID-19 conspiracy theories is highlighting just how difficult it is for online companies of all sizes to moderate content in a way that promotes user safety.

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Broadband Access Critical to Startups, Consumers
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Broadband Access Critical to Startups, Consumers

TLDR: Internet connectivity has become a critical resource for Americans coping with the pandemic, and the increased reliance on digital services is already highlighting gaps in Internet access and sufficient broadband infrastructure across the country. As Congress debates passing a phase four coronavirus relief package that would in part address broadband access concerns, it’s critical for policymakers to understand just how important connectivity is to U.S. startups and consumers. 

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Looking Beyond PPP Loans for Startup Relief
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Looking Beyond PPP Loans for Startup Relief

TLDR: Although the U.S. Small Business Administration is once again accepting applications from small businesses for Paycheck Protection Program loans, many startups still remain ineligible for the emergency funding that they need to survive the economic downturn caused by the coronavirus pandemic. It’s critical for lawmakers to pursue other policy proposals that will help startups and small businesses weather the current uncertainty.  

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Startups Need More Than Current Relief Loans
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Startups Need More Than Current Relief Loans

TLDR: Congress is set to allocate additional funding to the U.S. Small Business Administration’s Paycheck Protection Program to aid small businesses coping with the economic fallout of the coronavirus pandemic, but available loan programs are not doing enough to support startups that are in desperate need of financial assistance. As policymakers continue to evaluate legislative and regulatory responses to the ongoing outbreak, it’s imperative that they pursue policies—such as public-private equity investments, R&D tax credits, and forgivable loans beyond payroll expenses—that can adequately support the nation’s startup ecosystem.

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Surveys Show Startups Need Immediate Assistance
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Surveys Show Startups Need Immediate Assistance

TLDR: Surveys conducted by Engine and other entrepreneurial organizations show that U.S. startups need further economic relief to sustain their operations in the midst of the coronavirus pandemic. Almost two-thirds of respondents to our survey said their startups are in need of emergency financial support, even as entrepreneurs told us they are still seeking certainty that they will be eligible to apply for existing government programs.

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IP Recap - 04/09/20
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IP Recap - 04/09/20

During these unprecedented times, the U.S. Court of Appeals for the Federal Circuit is one of the many institutions taking steps to avoid the spread of COVID-19: shifting to telephonic proceedings, releasing live audio of oral arguments, restricting in-person access to court buildings, and modifying operations. But the court is continuing its work, issuing new opinions every day.

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SBA’s Affiliation Rules Still Unclear for VC-Backed Startups
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SBA’s Affiliation Rules Still Unclear for VC-Backed Startups

TLDR: The startup community is still waiting for clarity about whether venture capital-backed startups are eligible for small business loans included in the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, despite suggestions by federal officials that the issue would be addressed shortly. To better understand the relationship between economic relief efforts and startups, we are asking companies to fill out a brief survey here to help determine how the government can clarify existing rules—such as the SBA’s affiliation rules—to better protect the nation’s startup ecosystem.

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COVID-19 Resources for Startups
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COVID-19 Resources for Startups

TLDR: COVID-19 has put unprecedented stress on global health systems and the economy, but a variety of public and private institutions are offering resources and developing tools to try and help businesses. We have compiled a list of resources on our website to help startups navigate these uncertain times—from guidance on protecting the health and safety of teams, to information about accessing federal economic relief.

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EARN IT Act Threatens Section 230 Protections
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EARN IT Act Threatens Section 230 Protections

TLDR: A Senate panel this week is planning to discuss new legislation that calls for Internet companies to agree to yet-to-be-determined best practices around detecting and removing child sexual abuse materials or risk losing their critical intermediary liability protections. While startups and other online platforms share lawmakers’ desire to remove problematic and illegal user-generated content from their sites, the legislation—as currently drafted—threatens to disrupt the protections that have allowed the Internet ecosystem as we know it to thrive for more than two decades.  

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