Pride and Purpose

This morning, Senate Majority Leader Harry Reid posted a statement to his website announcing he would not be holding a cloture vote on the PROTECT-IP Act (PIPA) this coming Tuesday as previously planned. Less than an hour later, House Judiciary Committee Chairman Lamar Smith announced he would postpone markup of the controversial Stop Online Piracy Act in the House until “wider agreement can be reached.” 

This constitutes a stunning and major victory for Internet voices from all across America that came together in the last few weeks and months in opposition to this bill. Across the internet more than 13 million people stood up and took action against SOPA and PIPA and were able to achieve substantial change on the movement of these bills.

But the fight has only just begun. As Senator Reid said, the Senate Leadership is hoping to achieve compromise from all parties over the next several weeks. Stay tuned at

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EngineAdvocacy.org for more details on how to continue the fight as we’ll be posting new tools very shortly.

Above all, thank you all so much for your hard work, for your phone calls, for taking action online and offline. Make no mistake, today is a truly inspiring victory for the power of activism and engagement. But to find a better way forward, we’ll need more victories over the next several weeks and months. And together, we can achieve that victory.

Thank you for all that you do.

Artists against SOPA/PIPA

We’re excited to be part of a letter put together by a handful of individuals within the creative community to highlight the harms of PIPA and SOPA, and their belief in continued openness of the Internet. These are musicians, actors, and authors that the vast majority of Americans have welcomed into their lives and by virtue, into their homes.

Like all of us, these artists are keenly aware of the harms posed by copyright infringement, but wish to highlight for lawmakers that this legislation -- which is being moved through Congress at an alarming pace -- goes too far, threatening an ecosystem they rely on to reach their current fans and find new ones.

At a time when music sales are at an all time high due to distribution methods that rely on the Internet, and entertainment spending across the board is up 15% over the last decade, it is important to remember that the web continues to open up new markets and new possibilities every day. And that our favorite content creators have been able to harness that power in ways that would never have been imaginable 20 years ago.

We all must urge the Senate and House to carefully consider the ramifications of their actions and engage everyone impacted by this legislation to ensure we are protecting rightsholders’ creations
and
the platforms they (and we) rely on.

Read their letter. Call your Senator.

Our Internet

We’re excited to post a video today that we put together late last week with some great entrepreneurs in NYC. We asked them to talk to the amazing team at m ss ng p eces about why they started the business they have built, what motivates them every day, and the promise they see going forward. Each of them also spoke about why they fear legislation like PIPA and SOPA and the threats posed by legislation and regulation that have not been carefully thought through.

Now, when startups are the sole drivers of US job growth, accounting for practically all net new jobs in this country -- and the tech sector is the fastest growing among those -- is a good time to remember that protecting our Internet means letting our economy grow, and why our leaders need to ask important questions before passing legislation. And at the same time, to remember that the promise of tomorrow remains, as always, bright and innovative.

We’re grateful to the entrepreneurs who took time out of their busy day to participate in this video and the many others who volunteered to appear.

In alphabetical order:

Scott Belsky, Behance

Cindy Gallop, Consultant

Aaron Harris, Tutorspree

Chris Henry, Behance

Harry Heymann, Foursquare

Chris Mirabile, Hotlist

Censorship Around the World

While we’ve been fighting SOPA and PIPA, other countries around the world are also waging battles against the dire consequences of internet censorship.

The oppressive regime in Belarus set a new law into effect today which tightens the already strict regulation of internet use by making it illegal for Belarussians to visit foreign websites.  The Eastern European country established an extreme level of control over internet use last year when it issued Presidential Decree No. 60 , under which ISPs are required to block access to certain types of content and specific URLs – which are so far not disclosed to the public.  A similar, US version of this legislation – the Communications Decency Act of 1996 -   sparked controversy in the mid-90’s and was eventually overturned for violating First Amendment rights.

The new law is ostensibly to regulate online commerce – that is, making sure only domestic domains are used to provide online services – and violating it will result in a misdemeanor with a fine not to exceed the equivalent of about $125.  However, the implications could be much more serious than a slap on the wrist and a small fine.  The law requires that internet cafes and individuals providing internet access to other parties be responsible for any illegal browsing or e-commerce, and failure to report illegal usage of foreign sites could result in the business being shut down.   This kind of excessive punishment essentially discourages public internet use.  The government also has authorization to change and add to the list of banned sites – a level of governmental control that civil rights groups are distressed by ( Freedom House rates Belarus’ press freedom “not free” with “substantial political censorship”).

Meanwhile, Spain has passed anti-piracy legislation remarkably similar to the SOPA bill. Under the new Sinde law , a special commission will be formed to react to copyright infringement complaints made by rightsholders.  Slightly less draconian than SOPA, the websites will have ten days to remove the infringing material before being shut down. However, the bill has generated major opposition in Spain to what people see as a misleading law enacted for the benefit of Hollywood.

These battles mark crucial junctions for the future of open internet.  Just as the rejection of the Communications Decency Act was a pivotal moment in the creation of an unrestricted and dynamic internet landscape back in 1996, laws like Decree No. 60, Sinde, and SOPA/PIPA could set the tone for a more closed, stifled, and creatively impoverished world wide web.  

Verizon, Google Wallet and the LTE Network Agreement

Verizon Wireless has come under fire for blocking the mobile payment app, Google Wallet, from the keystone of its newly-released product line. Samsung’s Galaxy Nexus, which was developed in partnership with Google, was released last week after delays and speculation over whether or not Verizon would ship the phone with Google Wallet functionality.  Ship it did, absent the app - and it seems that in doing so Verizon may have violated its open-devices and open-applications conditions in its legal licenses for the 700MHz spectrum - the spectrum that operates its LTE network.  An open letter to the FCC was promptly dispatched by Barbara van Schewick, a professor at Stanford Law School and Director of the Center for Internet & Society.

The letter urges the FCC to investigate Verizon’s blocking of the app, as it appears to contravene FCC Service Rules which prohibit standards that block specific devices or applications or “
other services that compete with wireless service providers’ own offerings”.  For example, Verizon and AT&T’s new mobile payment application slated for launch next year ISIS, which will be in direct competition with Google Wallet.  

Van Schewick’s letter added that such a violation will have serious ramifications for all innovation in mobile technology -- not just mobile payment technology -- because investors will shy away from a business that is entirely at the mercy of wireless providers; companies that may have a stake in stifling competitive technologies.

Verizon already has a big piece of C-Block Spectrum- they recently signed a deal with Comcast and Time Warner to acquire 122 Advanced Wireless Spectrum licenses from SpectrumCo, which means they control a pretty significant chunk of the bandwidth -- a pretty hot commodity in the toll-road style spectrum system we currently have, and the very same type of license AT&T will now transfer to T-Mobile in the wake of their failed merger attempt.  So if the wireless companies can claim this much control over spectrum, do we really want to give them a monopoly over which companies and products they allow to use it?  The FCC still has to approve the Comcast/Time Warner deal. Only time will tell if Verizon’s move will play into their decision - and how similar deals are structured going forward.

Obama’s $2 Billion Early Innovation Fund - And What it Really Means for Startups

The Obama Administration recently
committed $2 billion

for small business growth as part of Startup America, a new initiative to encourage investment in startups.  The funding includes $1 billion in public funds to be put towards early stage investment by matching the investments of VC firms into small business startups.  The
Startup America Partnership

, led by Steve Case,
also announced over $1 billion in the form of services and resources for startups coming from private companies, including free legal and consulting services.  

On paper, this appears to be a positive boon for startups - but what are the real implications for the innovation economy? We’ve taken a closer look at some of the commitments:

  • Regulation A “miniofferings:”  
    Regulation A currently stipulates that offerings of investment capital can be made under an SEC simplified registration process if they are $5 million or less – a number that was arrived at in 1992.  This legislation would change the dollar threshold for exempt offerings to $50 million.  The Administration is touting this as a way to assist small companies in raising capital at a crucial stage in their growth.
    A
    Kauffman study

    revealed that new companies are responsible for
    all
    the job growth in the US since 1977, so it makes sense to make it easier for startups to raise funds early on to go public – the point in a company’s life span during which Case says 90% of new jobs are added.  There are those in the tech community that say
    government regulation and the startup community are always going to be at odds

    but given that this provision simply updates the existing regulation, it seems the least controversial way of moving the needle on this issue.

  • Crowdfunding:
    The most controversial of the Partnership’s provisions is the bill to legalize Crowdfunding –
    small-dollar investments that use online fundraising and social media platforms to solicit investors.  The point of giving startups access to crowdfunding as a fundraising tool is to provide them with more opportunities to raise capital and thus create jobs.  This one comes with its own set of regulations to protect investors, including limits on contributions and
    measures against fraudulent companies

    soliciting capital.  Crowdfunding sites for startups, like
    IndieGoGo

    and
    Kickstarter

    , already exist, but until this bill is signed into law, companies that raise funds from investors that are not registered broker dealers are
    at risk of being in violation of federal and state securities laws

    .

  • Investment in an Innovation Economy:
    Obama’s Early Stage Innovation Fund, coupled with the Startup America Partnership’s commitments from private-sector companies, are both steps on the road to an economy that is predicated on entrepreneurship and production rather than consumption.  
    The provisions basically make it easier for individual investors to fund startups and to offer more capital.  While this arguably increases inherent risk for investors, no one is forcing any individual to invest.  It’s an individual decision, and one that happens to have the added bonus of growing our economy and job market. It’s not just monetary investment, though.  The Department of Education, as part of Obama’s commitment to the innovation economy, will launch a
    National Education Startup Challenge

    , for which students will create a business plan for a new company - encouraging entrepreneurship by getting them in at the ground floor, so to speak.

Critics on Capitol Hill
dismiss
the announcement as little more than a White House PR stunt

, and while the immediate and tangible impact for startups is not completely apparent, it is at least a nod of support from the government and a commitment to the promotion of innovation and entrepreneurship.  Bottom line?  It’s more than a nice gesture, it could be a significant resource for startups. To truly create an economy based on innovation, education and growing government support are key.  These measures are, if nothing else, a positive indication of a turning tide of governmental support for entrepreneurship and the creation of a solid production based economy.

SOPA Markup on Hold. Now What?

In an unexpected move this morning, the House Judiciary Committee voted to suspend the markup of the hotly-contested Stop Online Piracy Act until the "next reasonable business day." To the 10,180 of you who (as of this writing) have made phone calls to your respective legislators, consider the beginning of this post a hearty, well-deserved congratulatory pat on the back.

The good news is that we now have more time to sway more hearts and minds on the committee and in the Congress and educate them as to why SOPA is such bad legislation in its current form.

The bad news is, the next meeting could be as early as Tuesday.

Let's keep the pressure on. Your voice is working. We heard that loud and clear in the halls of Congress this week. Now is the time to double down, make another phone call and let Congress know that as it stands right now, we stand united against SOPA and for finding a new way forward.

You can make a call right now at engineadvocacy.org/voice and now is the perfect time to let Congress know you won't stand for an internet that is easily censored and made insecure.

Thank you for your work so far, and for the work we all will do over the next weeks and months. The tide is turning in our favor, so stand up, keep fighting, and together we can protect the this essential resource in our lives.

UPDATE: Chairman Smith has scheduled the next round of markup for next Wednesday, December 21st according to multiple sources.

Internet Censorship in Malaysia

We’ve heard through third parties that there have been a number of inquiries from both the Malaysian government and in-country press expressing disapproval for our having included their nation in our ad on Wednesday. They object to being listed along with China and Iran as example governments who have been known to censor Internet traffic within their borders.

We included Malaysia in this list because it recently ordered various sites to be blocked for copyright reasons without meaningful due process for the affected sites -- just as the current versions of SOPA and PIPA in the United States would propose to do.

The Malaysian government's desire to stop large-scale, commercial piracy is an admirable goal, and one that we agree with, but site blocking is not the right way to do it -- it censors legal content unnecessarily (like the legitimate artists who use sites Megaupload to distribute their works); it is ineffective; and it threatens the security and integrity of the Internet.

By putting Malaysia in between China and Iran in that sentence, we did not mean to imply that its level of censorship and repression of free expression is akin to theirs. That would be a false comparison. To our knowledge, Malaysia's action in this particular instance of copyright is a break from their history of fostering ICT development.

It is our hope that Malaysia will take steps to ensure it has no place on this list.

Stand with Tech Entrepreneurs; Call Congress now to Stop SOPA

Today, 17 Web luminaries sent a letter to Congress opposing SOPA - the Internet censoring, innovation killing copyright legislation.

Will you stand with them and call Congress now.

Please spread the word to friends too - SOPA is heading for a committee vote tomorrow, so time is of the essence. The founders' letter will run as print ads, full page in today's New York Times, Wall Street Journal, Washington Post, Washington Times, Roll Call, The Hill, Politico, and CQ. You will not be able to pick up a paper in the DC area (or, really, many other places) without reading this letter. There will also be an online ad on CNET, TechCrunch, Gigaom, and Mashable, and Politico already has a story up. The ads point to a call Congress alert run by Engine Advocacy: http://stopthewall.us/

White House Announces $2bln in Startup Support

“Today, we’re announcing $2 billion in public and private resources to help entrepreneurs start and grow their businesses. Now it’s time for Congress to do its part. It was encouraging to see members of both parties in the House come together to pass legislation that will help small businesses get ahead, and I’m calling on the Senate to do the same. But America’s small businesses can’t wait for these important tools to grow and hire faster,” said President Obama.

Read more at WhiteHouse.gov

TechDirt: The Engine Of Innovation Realizing It Can't Ignore DC Any More

Today marks

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the launch of an exciting new effort among the startup ecosystem: Engine Advocacy. If you're an entrepreneur, investor, innovator, creator or involved in the overall startup ecosystem, please check out the website and consider joining....

Read more at TechDirt.com

Full disclosure: Mike Masnick is an informal advisor to Engine Advocacy on policy matters.

Keep the Web #OPEN

One of the main criticisms Hollywood has levied at Silicon Valley throughout the SOPA/PIPA debate is "Hey, it's not a perfect bill but it's not like you guys are offering better solutions."

The esteemed gentleman from California (and a few friends) beg to differ.

Today, Congressman Darrell Issa launched KeepTheWebOPEN.com, a site on which he invites public comment on his proposed Online Protection and Enforcement of Digital Trade Act, which is envisioned as a more sensible option to protect copyright online by using international trade laws as enforcement mechanisms.

You can visit the website, read the proposed bill in full and add your voice to what you would like to see in the proposed legislation at the same time. So take a look, and do what you can to keep the web #OPEN.

Hi. We're Engine.

New_Democrats_1.jpg

We’re very excited to see our plans for Engine come to fruition - creating a platform for communication between one of the fastest growing and valuable industries and the decision makers in government is something we are very passionate about. We're launching our full website today and we want the site to be a collaborative space to engage on issues of importance to the tech industry - like our opposition to the controversial anti-piracy bills SOPA and PIPA.

We want Engine to be a catalyst for positive change that will benefit our community as a whole. That means creating a dialogue where none currently exists, and through action, education, and collaboration, changing the landscape of the American economy. We want Engine to be the portal through which you can become active and engaged - by being plugged into a network of other interested individuals, by directing public policy through legislative action, and by driving growth in key sectors.

You Don't Have to be a CS Major to Have an Idea

When you hear the phrase “tech industry” (and you do, you probably use it yourself all the time), most often the associations will be with consumer web companies and cleantech. That’s now a part of our cultural vocabulary, but technology isn’t the exclusive domain of these sectors. The word technology was around long before the dotcom boom, and there are still plenty of us who use the term in a far less narrow context.

Cleantech now dominates the conversation about transportation. The automotive industry has more and more cleantech entrepreneurs, but Toyota’s Prius and Fisker’s Karma are preceded by a long line of innovations, starting with the ancient civilizations who handily gave us the wheel, through to Karl Benz who invented the first practical, gasoline engine automobile so that his wife, Bertha, could take long distance trips.

Similarly, a half millennium of change in the way we communicate wasn’t spurred by a dynasty of web developers. Rather it was crafted by a handful of humble pragmatists looking to accomplish something. Gutenberg was looking for a better way to spread the good word. Sholes and Glidden a better way for typists to put words to the page. Carlson a better way to copy. And Tim Berners-Lee a better way to whip words around the globe. These pragmatists worked from simple ambition, but their creations ushered in a communications revolution.

So why do even those of us who work within the ‘Internet sector’ believe we have the monopoly on technology?

We don’t.

The lines have always been blurred, possibly nonexistent. Even businesses that exist on the periphery of the tech industry, companies like Craft Coffee and BirchBox, are an essential part of this relentless innovation in communication. They rely on the Internet as a core element of how they market, but fundamentally, they still produce and distribute traditional goods and services.

Let’s start calling what we do what it is. Technology is all about pushing humankind forward and developing new ideas, new processes, new goods, new methods, and new designs. It shouldn’t be a buzzword for one particular industry, or a moniker for some untouchable notion of invention belonging to the entrepreneurial elite.

Let’s honor the humble pragmatism of the innovators that came before us. The “tech industry” should be a simple solution to the problems we face. It should communicate better. It should make our words clearer. And it should be open to everyone.