The Big Story: Changes to copyright rules would hurt news, commentary startups, and free expression
As a few countries adopt or consider laws that would require websites to pay whenever they—or their users—link to or quote a news article, the U.S. Copyright Office is studying what those sorts of laws would mean here. In comments this week, Engine emphasized the substantial unintended consequences of such policies, which would not just alter how information is shared and communicated online, but cause problems for startups and innovation.
The Copyright Office’s study is rooted in concerns about the state of local media—a vitally important source of community, information, and accountability. But adjusting copyright or competition law to restrict sharing hyperlinks and quoting news headlines—something that the public, Internet users, startups, and multiple media outlets rely upon—would be a poor fit for resolving the challenges facing local media.
As we stated in our comments, the basic concept of forcing everyone to pay when they link news online is also highly problematic. It would frustrate, if not wipe out, many startups who depend on the Internet working the way it does. This would include many startups who are creating new business models for local media or supporting better ways to generate and engage with localized content. The proposed changes in the law would reduce prospects for future innovators, too. It would also restrict free speech and damage public discourse. And it would entrench the largest players in both media and online markets. Indeed, proposals like these have been attempted in other parts of the world, creating problems for startups and small businesses, but also complicating the way people communicate about news and current events online, all while primarily benefiting larger media organizations.
As we noted, as U.S. policymakers consider solving problems that impact local newspaper newsrooms, “it is vital they take a holistic view of local media markets and digital innovation ecosystems to avoid legal structures that restrict progress or curtail vital First Amendment rights.”
Policy Roundup:
Build Back Better Act stalled, likely to reemerge in some form. In December, Senator Joe Manchin (D-W.Va) announced that he could not proceed with the Democrats’ social spending package “in its current form.” The bill had included adjustments to the tax treatment of Qualified Small Business Stock (QSBS) that startups were concerned about because QSBS promotes startup formation and investment. While the BBB is not moving forward in the immediate future, startups remain concerned that provisions curtailing QSBS will remain as ‘pay-fors’ in future legislation, as the tax credit is a crucial tool for startups looking to attract investment and talent.
Supreme Court Year End Report notes concerns with patent venue. In his 2021 end of year report, Chief Justice Roberts highlighted issues of judicial assignment and venue in patent cases. Recently, both Democrat and Republican Senators have voiced concerns that case assignment procedures allow plaintiffs filing patent suits to essentially select which judge will oversee their case—creating a situation where one judge is overseeing 25 percent of all U.S. patent cases, driving an increase in overall litigation, especially considering the vast majority of the cases filed before him come from patent assertion entities. In the report, Justice Roberts said he asked the Judicial Conference to take up this question, with an eye towards public confidence in the courts.
Non-U.S. Indo-Pacific trade agreement could enable digital protectionism. The Regional Comprehensive Economic Partnership, a regional trade agreement among China and 14 other countries, entered into force on January 1st. The agreement—the world’s largest—comes into force as the U.S. is still considering its path forward in the region. As we joined with 17 other organizations across the economy last fall, startups need trade leadership in the Indo-Pacific to reduce barriers to trade and promote flows of data across borders.
Public Domain Day allows old, copyright-protected works to resurface. The first day of the year marked Public Domain Day, a day on which formerly-copyrighted works become part of the public domain, and free for anyone to use. This year works from 1926 (which up until recently were still covered by copyright protection)—including some written works by Ernest Hemingway and Langston Hughes, the original Winnie the Pooh, and old jazz standards—can now be shared and enjoyed publicly, remixed, or built upon without having to pay licensing fees or be threatened with the fear of litigation.
Join us for a conversation on data portability and interoperability. Continuing from December’s Nuts and Bolts of Privacy event series, join us for a conversation on data portability and interoperability. Our panel of experts will discuss the realities of portability and interoperability, potential privacy impacts, and what we can learn from places around the world that have already created these kinds of mandates. Join us next Wednesday, January 12th at 12 pm ET, and register here.
We’re hosting a conversation for SOPA’s 10th Anniversary. On January 21st at 12 pm ET, we’re hosting a panel for the 10 year anniversary of the defeat of the Stop Online Piracy Act (SOPA). Join us as we examine the ways that existing legal frameworks allow startups to host user-generated content for all kinds of purposes and communities. Register for the event here.
Startup Roundup:
Engine is looking for startups’ stories to share. It’s a new year and our team is looking to share the story of more innovative startups as part of our #StartupsEverywhere series. This is a campaign celebrating the diverse, vibrant entrepreneurial ecosystems that are taking root in every corner of the country. Through weekly profiles of startup leaders, the project showcases exciting developments in a variety of rising startup communities and the effects of various policy issues on these emerging companies. If you are interested in having your company featured, or would like to suggest a company you know, shoot an email to ian@engine.is.
