The Big Story: DOJ proposes changes to bedrock Internet law. The Department of Justice this week released a set of proposals for reforming a bedrock Internet law, a move that would make it more difficult and costly for Internet companies to host users’ content. The announcement comes as some lawmakers and federal officials have called for legislation to scale back Section 230 of the Communications Decency Act, which provides Internet companies of all sizes with the ability to moderate user content without being held liable for what they do or do not take down from their sites.
#StartupsEverywhere: Austin, Texas
Austin-based nonprofit organization DivInc is working to drive systemic change across the U.S. startup community by fostering the growth and development of underrepresented entrepreneurs. The organization is focused on connecting entrepreneurs of color and women founders with the mentors, connections, opportunities, and resources needed to create more authentically inclusive startup communities.
Engine Leads Letter to Judiciary Committees Over Patent Quality Concerns
Statement on the Supreme Court's DACA Decision
Statement on the Limiting Section 230 Immunity to Good Samaritans Act
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.
Startup News Digest 06/12/20
The Big Story: Treasury pushes for ‘much more targeted’ small business relief. Treasury Secretary Steven Mnuchin told the Senate Small Business Committee on Wednesday that the Trump administration is open to including a new round of Paycheck Protection Program (PPP) loans in the next coronavirus relief package, although he said that any future funding “needs to be much more targeted to the industries and small businesses having the most trouble going forward.” Mnuchin added that he is loosening the program’s existing rules in order to ensure that most of the small businesses receiving PPP loans can receive at least some loan forgiveness.
#StartupsEverywhere: New York City, N.Y.
As nationwide protests over police brutality and inequality continue, industries across the U.S. are reevaluating their diversity and inclusion initiatives in order to more effectively combat systemic racism within their own ranks. One startup that has been focusing on these workplace inequalities is Dipper, a platform launched last year that lets Black and Latinx professionals share and review their company experiences in order to help other professionals of color make more informed career decisions. We recently spoke with Netta Jenkins, the Co-Founder of Dipper, to learn more about Dipper’s work, the experiences of entrepreneurs of color, and some of the steps that need to be taken in order for the tech industry to better support underrepresented founders and their ideas.
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.
Putting Tech Policy Aside to Address Systemic Inequalities
In light of recent nationwide protests over police brutality and systemic racism, we’re putting our normal newsletter on hold this week in order to focus on organizations working to address those issues. Technology policy has a role to play in making sure people can stay connected and informed, and the tech industry has a long road ahead in addressing its own systemic inequality. But we’re spending this time listening to and highlighting organizations that have been working to address these issues on a larger scale, and we encourage you to do the same.
Engine and R Street File Amicus Brief Urging Court to Prevent Gamesmanship in Patent Damages
Patent litigation is notoriously expensive and can last for years. For startups in particular, the high costs and risks of these lawsuits are difficult to cover. Startups already operate on thin margins, and do not have excess resources to spend on legal fees or settlements arising from frivolous patent assertions. The mere existence of litigation (or a patent demand) also forces startups to divert attention from R&D, makes it difficult for startups to attract customers and investors, and can cause drops in valuation.
The Importance of DMCA for Startups
Section 512 of the Digital Millennium Copyright Act (“DMCA”) is a landmark law that has provided startups, copyright holders, and Internet users with a balanced framework to address allegations of online infringement. But Congress is considering revising the law, and in that process it is critical for policymakers to carefully consider the importance of the DMCA to the startups and creators that rely on its protections.
Startup News Digest 05/29/20
The Big Story: White House executive order threatens bedrock Internet law. President Donald Trump signed an executive order yesterday targeting “censorship” by online companies, a dangerous and misguided move that threatens to undermine the bedrock law that has allowed Internet platforms of all sizes to grow. The directive came after Twitter added fact-checking labels to several of President Trump’s tweets about mail-in ballots earlier this week.
Startups Are Using Emerging Technologies to Confront the COVID-19 Pandemic
As Americans continue to confront the challenges caused by the coronavirus pandemic, startup founders are doing everything they can to support efforts to respond to the pandemic. We spoke with two startup founders who are working to leverage emerging technologies—including nanotechnology and automation—for the public good.
Statement on Executive Order on Content Moderation
The White House’s executive order on “preventing online censorship” is a dangerous move that will encourage bad faith lawsuits, and dismantle the fundamental and commonsense legal framework that startups depend on to compete in today’s Internet ecosystem and keep their platforms free of objectionable content.
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.
Startup News Digest 05/22/20
The Big Story: Congress working to clarify small business loan program. The U.S. Senate this week tried to double the amount of time that recipients of Paycheck Protection Program loans have to spend the emergency funding, even as House Democrats plan to advance legislation next week that would change accessibility requirements and allow PPP loans to be used over an even longer 24-week timeframe.
#StartupsEverywhere: New York City, N.Y.
HotelsByDay wants to make the hotel experience more hospitable by offering guests the opportunity to book hotel amenities and rooms for personal- and business-related uses during the day. Based in New York City, the startup is focused on monetizing unused hotel amenities and rooms by providing guests with a place to stay, conduct business, and relax outside of typical hotel booking times. We recently spoke with Yannis Moati, HotelsByDay’s CEO, to learn more about his idea for the startup, how the coronavirus pandemic has affected his business, and how crowdfunding allows startups to diversify their investment sources.
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.
Startup News Digest 05/15/20
The Big Story: Broadband access in the time of COVID-19. House Democrats this week introduced the HEROES Act, their proposed $3 trillion coronavirus relief package that includes a dramatic expansion of pandemic-related broadband assistance to help close the digital divide. The inclusion of broadband funding in the proposed relief package comes as policymakers in recent weeks have grown more vocal about the importance of reliable Internet connectivity during the COVID-19 pandemic.