Online companies of all sizes rely on Section 230 to host and moderate user-generated content without the fear of being subjected to crippling lawsuits, and undermining this bedrock Internet law would disproportionately affect early-stage startups.
Tech Companies Sue Patent Office To Restore Patent Review Process
TLDR: A lawsuit filed yesterday against the U.S. Patent and Trademark Office by four tech companies seeks to restore review procedures that enhance patent quality and combat abusive litigation brought by so-called “patent trolls.” If successful, the case would restore inter partes review (IPR), a process that makes it easier for startups to push back against frivolous lawsuits brought by patent trolls.
Startup News Digest 08/28/20
The Big Story: SEC’s accredited investor update a good first step for startups. The U.S. Securities and Exchange Commission this week updated its “accredited investor” rules—which govern who can invest in early-stage, privately held firms—to allow individuals who do not meet the existing wealth threshold to participate in private capital markets. The previous rules only allowed individuals who earned more than $200,000 per year, or had a net worth of over $1 million, to qualify as accredited investors. The updated rule expands the definition so that potential investors are not judged only by their wealth, but by other features—such as having relevant knowledge and expertise—that can make it easier for qualified individuals to invest in startups.
#StartupsEverywhere: Effingham, Ill.
MyAgData is an agricultural-focused data analytics startup that allows farmers to utilize acreage reporting software to simplify their reports for the U.S. Department of Agriculture and for crop insurance as well as giving lenders and insurers unique insights into their customer’s acreage productivity and health. We recently spoke with MyAgData’s CEO and Co-Founder, Deb Casurella, to learn more about the firm, their access to funding opportunities, and how policymakers can work to encourage young talent to stay in rural communities.
Trump Administration Ramps Up Pressure on Section 230
TLDR: The Trump administration is pressuring federal agencies to comply with an executive order that would change a bedrock Internet law in order to address supposed bias from major Internet platforms. President Donald Trump has been pushing agency officials in recent months to weaken the framework—known as Section 230 of the Communications Decency Act—that lets companies host and moderate users’ content without the fear of being sued into bankruptcy. While much of the attention around Section 230 focuses on major Internet companies, the law is especially critical for startups, which would be disproportionately impacted by policy changes in this space.
Startup News Digest 08/21/20
The Big Story: Privacy Shield rollback leads to new complaints over U.S. websites. The recent court decision striking down a transatlantic data transfer deal is already having adverse effects for websites of all sizes. This week, a European privacy group founded by Austrian privacy activist Max Schrems filed complaints with European Union data regulators against 101 websites that use tools like Google Analytics and Facebook Connect.
#StartupsEverywhere: Coatesville, Pa.
H20 Connected manufactures wireless-enabled products like LeakAlertor to help property management and hospitality businesses deal with leaking, overflowing, and running toilets. The startup was incubated in Coatesville, Pennsylvania, to utilize the city’s Qualified Opportunity Zone program to help scale their growth moving forward. We recently spoke with Susan Springsteen, the president of H20 Connected, to learn more about Opportunity Zones, her startup’s work, and the steps that she believes lawmakers should take to strengthen the Paycheck Protection Program for small businesses affected by the ongoing pandemic.
Law Reclassifying Independent Contractors Will Harm California’s Startups
TLDR: Uber and Lyft may have to suspend their services in California after a San Francisco judge ruled last week that the firms must comply with a state law—Assembly Bill 5 (AB 5)—that requires California companies, including “gig economy” platforms, to reclassify many independent contractors as employees. Although the law is ostensibly targeted at larger platforms like Uber and Lyft, it is likely to be an existential threat for smaller startups.
Startup News Digest 08/14/20
The Big Story: EU, U.S. negotiating on “enhanced” data transfer pact. The United States and the European Union are discussing the formation of a new transatlantic data transfer pact to replace the Privacy Shield framework struck down by Europe’s top court last month. In a joint press statement released on Monday, Commerce Secretary Wilbur Ross and European Commissioner for Justice Didier Reynders said that they “have initiated discussions to evaluate the potential for an enhanced EU-U.S. Privacy Shield framework to comply with the July 16 judgment.”
Congressional Startup Day 2020
During the second week of August, more than 40 members of Congress met with over 100 entrepreneurs across the United States as part of Congressional Startup Day. This annual, bipartisan celebration of startups brings together founders and policymakers to discuss the challenges and successes of entrepreneurship in America. Although the COVID-19 outbreak forced many of the meetings this year to be held virtually, lawmakers still spent the week around Congressional Startup Day conversing with entrepreneurs in their states and districts about the policy needs of startups—particularly about the ways in which Congress can better support the country’s startup community amidst the pandemic.
#StartupsEverywhere: Raleigh, N.C.
Studies have repeatedly shown that women founders face greater obstacles to funding and investment opportunities than male business owners. Tired of the lack of opportunities for women entrepreneurs, Cindy Foy-Uhlir—a former consultant based in Raleigh, North Carolina—decided to do something about it.
Policymakers Use Congressional Startup Day to Connect With Local Entrepreneurs
Advocating for Entrepreneurs as Part of Congressional Startup Day
As part of Congressional Startup Day, entrepreneurs with the Conductor in Conway, Arkansas, held a virtual discussion with Rep. French Hill (R-Ark.) about the importance of supporting entrepreneurial communities. Tiffany shared some of her thoughts about the discussion with Rep. Hill, who is one of the co-chairs of this year’s Congressional Startup Day.
IP Recap - 08/11/20
A recent Federal Circuit decision, In re PersonalWeb Technologies LLC, highlights ways companies can protect their customers against abusive patent litigation. There are various legal doctrines, rooted in fairness and efficiency, that can apply—including to protect startups that are accused of infringement based on buying or using someone else’s product or service.
Startup News Digest 08/07/20
The Big Story: FCC takes next step on Trump’s social media executive order. A federal agency this week moved ahead with a petition from the Trump administration that could open up liability for companies that host user content. Federal Communications Commission Chairman Ajit Pai said on Monday that the agency will receive public comments in response to President Donald Trump’s May executive order on “preventing online censorship” that pushes federal agencies to clarify the meaning of “good faith” content moderation under the law.
#StartupsEverywhere: Raleigh, N.C.
Launching a startup is hard, but Big Pixel—a strategic design and development firm based in Raleigh—is hoping to give founders the resources and support they need to succeed. The firm works with entrepreneurs to streamline their ideas and produce engaging user experiences that are needed to attract customers and attention. We spoke with David Baxter, Big Pixel’s Founder, to learn more about his company’s work, the Raleigh startup ecosystem, and what policymakers can do to support startup success.
Negotiations on Relief Package Must Include Startup Voice
TLDR: Policymakers and Trump administration officials are holding discussions this week about the impending coronavirus relief package, but the lack of progress on a deal means that Americans and entrepreneurs are still waiting for much-needed support. As deliberations continue, lawmakers should consider a variety of proposals to strengthen currently available small business loan programs and pursue policies that will position startups and entrepreneurs to survive for the long-term.
Startup News Digest 07/31/20
The Big Story: Messy ‘Big Tech’ hearing fails to address startup competition. Big tech CEOs were in the hot seat this week during a House antitrust hearing ostensibly about anti-competitive practices. Instead, however, lawmakers used the opportunity to air a variety of grievances against large tech firms without offering a coherent plan for policymaking that could benefit the U.S. startup ecosystem. While some of the members of the House Judiciary Antitrust Subcommittee used Wednesday’s hearing with the CEOs of Amazon, Apple, Google, and Facebook to address startup concerns, the hearing clearly demonstrated that policymakers need to rethink their approach to competition policy by listening to the concerns of the entrepreneurial community if they truly want to support startup growth and innovation.
#StartupsEverywhere: Pine Bluff, Ark.
Pine Bluff is known as the ‘Bass Capital of the World’ because of its numerous recreational opportunities and bass fishing tournaments, but a group of local citizens and entrepreneurs is working to turn the city into a hub of business development. Go Forward Pine Bluff (GFPB), a non-profit organization, is working to improve education, local government, infrastructure, quality of life, and economic development in the city. The organization created an innovation hub in 2017 to help drive their economic development efforts. Known as The Generator at Go Forward Pine Bluff, the innovation hub is working to improve the digital skills of entrepreneurs, improve the city’s lagging broadband access, and support the long-term success of small businesses.
Section 230 back in the spotlight
TLDR: The Trump administration and policymakers are putting growing pressure on a bedrock Internet law that allows companies of all sizes to host and moderate user-generated content. Startups depend on this framework—known as Section 230 of the Communications Decency Act—to grow without the fear of being sued into bankruptcy over the user-generated content they host and moderate. Weakening this law would have a disastrous effect on the Internet ecosystem.
