TLDR: As federal officials hold hearings on potential action against countries that have enacted their own digital services taxes (DSTs), U.S. startups remain concerned that they could be affected by the digital levies in the form of higher costs for needed services, or even subjected to the new taxes themselves. Rather than imposing unilateral DSTs that harm startup growth, countries and global officials should work to reach a uniform digital tax framework that provides certainty for Internet companies of all sizes.
Startup News Digest 04/30/21
The Big Story: Biden unveils plan to invest billions in education, child care. President Joe Biden unveiled an ambitious $1.8 trillion proposal—known as the American Families Plan—that would, in part, give Americans expanded access to education, create a federal paid family and medical leave program, and extend the expanded child tax credit included in last month’s stimulus package. In a speech before a joint session of Congress on Wednesday, Biden said the plan—along with his proposed $2 trillion infrastructure package—would help keep the U.S. at the forefront of global competitiveness.
#StartupsEverywhere: Austin, Texas
Jean Anne Booth is a serial entrepreneur who came out of retirement when she and her mother realized an unmet need for technology to promote both safety and independence in aging populations. Based in Austin, Texas, Booth founded UnaliWear and developed the Kanega Watch to provide vulnerable individuals and their families better alternatives to live with the dignity and support they deserve. We spoke with Booth to learn more about her company, the prospects for funding medtech development, and her experience with the U.S. patent system.
IP Recap - 04/28/21
Last month, Engine joined an amicus brief in a case at the intersection of intermediary liability and intellectual property law. In Hepp v. Facebook, a plaintiff argued photos of her were taken and posted without her consent, in violation of Pennsylvania’s right of publicity law. And on the theory that state right of publicity claims constitute “intellectual property,” she sought to hold Facebook, Reddit, Imgur, and other platforms liable for those user-generated posts.
Balanced, Certain IP Frameworks are Critical to Support Startups and Drive Innovation
TLDR: Across the country, small- and medium-sized companies rely on and benefit from balanced and certain intellectual property (IP) laws to innovate and build better businesses. That’s why this week’s celebration of World Intellectual Property Day provides a timely opportunity for U.S. policymakers to better appreciate the importance of such balance and certainty when crafting policy that applies to the emerging startups that are critical hubs of global innovation.
Startup News Digest 04/23/21
The Big Story: New Engine report assesses the nation’s startup ecosystem. Engine, with support from the Charles Koch Institute and data prepared and analyzed by Startup Genome, released a new report this week examining trends in the startup ecosystem. The report—"The State of the Startup Ecosystem”—evaluates startup fundraising trends, assesses individual U.S. ecosystems, analyzes startup exits, and contextualizes the capital needs of investor-backed startups.
#StartupsEverywhere: Kansas City, Mo.
Mycroft AI offers open-source voice assistant technology that can be integrated into all types of third-party hardware, from desktop computers to automobiles. We recently spoke with Joshua Montgomery, the Founder of Mycroft AI, to learn more about the need for patent reforms to reduce abusive litigation, the intersection between user privacy and open-source AI development, and how Mycroft AI will contribute to the growing voice assistant market.
Engine Releases Report On the State of the Startup Ecosystem
Today, Engine, along with the Charles Koch Institute and Startup Genome, issued a report looking at the overall health of the startup ecosystem. We hope this report can serve as a resource for policymakers considering a wide range of policy issues that impact early-stage companies across the country.
Lawmakers Are Right to Prioritize Diversity and Inclusion in Innovation
TLDR: A key Senate panel is holding a hearing tomorrow to discuss ways to improve diversity within the U.S. patent system. As entrepreneurs across the country call on the government to support more diversity in innovation, and with the country continuing to confront systemic inequities, policymakers must work to ensure that increasing diversity in innovation—both inside and especially outside the patent system—remains a central component of their work.
Startup News Digest 04/16/21
The Big Story: Bipartisan bill would boost U.S. tech investments, R&D funding. A key Senate panel held a hearing this week to discuss bipartisan legislation meant to bolster the U.S. technology sector against the growing threat of competition from China. Members of the Senate Commerce Committee used Wednesday’s hearing to discuss how the bill, known as the Endless Frontier Act, would provide long-term investments in research and development, entrepreneurship, and technological advancements in order to solidify America’s leadership in the global innovation economy.
Independent Contractors Serve a Vital Role in the U.S. Startup Ecosystem
TLDR: Hiring full-time talent is costly and difficult when a startup is in its early stages, but recent federal efforts have created even more uncertainty for nascent companies that rely upon independent contractors to help them innovate and grow. As Congress and the Biden administration take steps that could narrow the definition of an independent contractor, policymakers must be careful to examine how this push would impact workers, startups, and small businesses across the country.
Startup News Digest 04/09/21
The Big Story: Boosting legal immigration will benefit startups, U.S. global leadership. As federal policymakers continue to debate much-needed updates to the nation's immigration system, a report released this week found that the U.S. risks losing its status as the world’s largest economy by 2030 if policymakers do not take steps to expand and increase legal immigration. The study, conducted by FWD.us in collaboration with George Mason University, highlighted how U.S. gross domestic product (GDP) could double by 2050 if the level of permanent and temporary immigrants was increased to more than two million each year.
Supreme Court Ruling in Google v. Oracle a Win for Startups
TLDR: A Supreme Court decision yesterday means that startups and developers should be able to continue to use software interfaces, known as application programming interfaces (APIs), without facing liability for copyright infringement. Startups and developers routinely rely on APIs to create interoperability and compatibility between computer programs, and they had long understood APIs to be exempt from copyright protection. But a yearslong lawsuit between Oracle and Google put that understanding—and the use of APIs—at risk. Now, the Supreme Court has held that using APIs is a fair use under the law, and its reasoning should permit entrepreneurs to continue using APIs when developing innovative products and services.
Engine Welcomes Supreme Court Ruling in Google v. Oracle Case Over Fair Use of APIs
“This morning’s decision in Google v. Oracle is a win for startups and developers across the country. The Supreme Court has left the doors open to innovators and entrepreneurs using APIs to create interoperability and compatibility between computer programs. With confirmation that such use is fair, startups can more affordably build software without incurring steep licensing costs and facing the constant risk of litigation.”
Startup News Digest 04/02/21
The Big Story: Biden unveils infrastructure plan with broadband, tax proposals. President Joe Biden announced an ambitious $2 trillion proposal this week that would rely on a combination of spending and tax credits to upgrade and expand the nation’s infrastructure. In addition to devoting billions of dollars towards upgrading schools, improving roads and bridges, and spurring a shift towards clean energy sources, the plan would also allocate $100 billion towards the expansion of broadband to narrow the nation’s digital divide. In a speech on Wednesday announcing his infrastructure plan, President Biden said the connectivity funding would “make sure every single American has access to high-quality, affordable high-speed Internet.”
#StartupsEverywhere: Holland, Mich.
Headquartered in Zeeland, Michigan, Lakeshore Advantage is a nonprofit economic development organization that’s working to support startups, entrepreneurs, and businesses in West Michigan. We recently spoke with Amanda Chocko, the Director of Entrepreneurship at Lakeshore Advantage, to learn more about the organization’s work supporting local startups, the importance of reliable broadband services, and what the future holds for West Michigan’s startup community.
As Global Fight Over Digital Services Taxes Heats Up, U.S. Startups Stand to Lose
TLDR: As federal officials seek public input regarding the response to countries that have enacted digital services taxes (DSTs) on U.S. Internet companies, the startup community remains concerned that they will be affected by the levies in the form of increased costs for the services and products they rely upon. While the Biden administration and global officials work to reach a uniform digital tax framework, it’s critical that countries—and even U.S. states—refrain from imposing their own digital services taxes that could harm startup formation and success.
Proposals to Change Copyright Law: What Do They Mean for Startups?
Every day, people use the Internet to create and share content with others across the globe—and those users, and the Internet companies they rely on, each depend on a copyright framework some policymakers are looking to change. Specifically, a few members of Congress indicated they may be willing to re-open Section 512 of the Digital Millennium Copyright Act (DMCA). Unfortunately, the policy debate mostly revolves around large companies—both big tech companies and Internet platforms as well as large rightsholders in traditional content industries, like mainstream music or movies. But this area of the law is critical to all types of companies, Internet users, and creators. This post attempts to unpack some recent proposals, in an effort to help more stakeholders—especially tech startups—understand what is happening.
Startup News Digest 03/26/21
The Big Story: Removing barriers to entry for women entrepreneurs. Although the number of women-founded companies across the globe has doubled over the past decade—from 10 percent in 2009 to 20 percent in 2019—women entrepreneurs still face significant roadblocks when competing in the largely male-dominated technology sector. The gender disparity in the technology sector, driven in part by systemic sexism and responsibilities like child care and family caregiving, makes it more difficult for women entrepreneurs to break into the space with their own unique ideas and visions. Women represent just 11 percent of venture capital investment partners across the U.S., and women-led companies raise an average of 13 percent less in funding than their male counterparts. Women-led startups received only 2.8 percent of VC funding in 2019, while Black and Latino women founders combined to receive just 0.64 percent of total VC investments. That’s why it’s so critical for the startup community and policymakers to confront the challenges women entrepreneurs face and ensure that a diverse range of individuals are able to pursue entrepreneurship.
#StartupsEverywhere: Rochester, N.Y.
Arkatecht is a startup that creates professional development tools to help working parents advance and succeed in their careers. The company’s Atlast learning platform is specifically designed for parents working in human services fields—such as mental health and social work—to help them maintain a sound work-life balance. We recently spoke with Arkatecht’s Founder and CEO, Yasmin Mattox, to learn more about the startup’s focus on supporting working parents, what it’s like to be a woman founder, and why it’s important for policymakers to engage with the startup community.