The Big Story: Internet platforms strike back at deceptive content. Internet platforms took new steps week to counter misleading content, including limiting the spread of misinformation about the coronavirus and offering new tools to counter digitally manipulated videos known as deepfakes.
Whether it’s securing sites ahead of the 2020 elections, preventing the dissemination of fake health news in the wake of a viral outbreak, or combatting the rise of digitally manipulated media, online platforms are constantly updating and improving their content moderation practices. That trend continued this week, with Twitter and YouTube revamping their rules to remove harmful deepfakes and Google partnering with the World Health Organization to fight the spread of misinformation about the coronavirus.
These steps are examples of platforms using the "sword" part of Section 230 of the Communications Decency Act, which protects platforms from being held legally liable as the speaker of users' content when they moderate their sites. As we have repeatedly stressed, intermediary liability protections are especially critical for startups that lack the resources of their larger competitors to effectively review every post or comment on their sites. Despite some large companies attacking Section 230 in order to weaken their competitors, the protections enable platforms of all sizes to police their sites for deceptive content like misinformation and doctored images and videos. Weakening these protections undermines ongoing efforts to identify and remove harmful or malicious user-generated content, particularly for startups.
Policy Roundup:
Engine joins brief backing challenge to AB 5. Engine, TechNet, and the U.S. Chamber of Commerce filed an amicus brief warning about the unintended harms of California's recently enacted AB 5, which changed the rules regarding independent contractors. This week, the House approved a bill that includes similar restrictions around independent contractors, which, as we noted earlier this week, will hurt startups.
Huawei, Verizon patent fight could threaten 5G. This week, Huawei—which some policymakers warn is a national security risk because of its close ties with the Chinese government—sued Verizon claiming that the company infringed on two "standard-essential patents." If successful, Huawei could force U.S. tech companies to use some of its products or bog down domestic innovation with patent litigation by asserting patents that are critical for building out 5G networks.
Lawmakers examining fintech bills. A review of fintech-related legislation conducted by Roll Call found that congressional lawmakers are working on a variety of bills that would support the development of cryptocurrencies and blockchain technology, while also addressing jurisdictional and criminal concerns regarding the use of digital assets.
FCC to vote on white space proposal later this month. Federal Communications Commission Chairman Ajit Pai said in a statement that the agency will vote at its Feb. 28th meeting on a proposal to use broadcast white spaces—the unused spectrum between broadcast television stations—to help provide broadband services to rural and underserved communities.
Salesforce sued over data breach. Salesforce is being sued for allegedly violating the California Consumer Privacy Act (CCPA) after hackers scraped personal information from a children’s clothing company that is hosted on the firm’s e-commerce platform. The complaint includes the allegation that—because the type of data breach was well-known—Salesforce should have stopped it.
Appeals court will not review net neutrality ruling. The D.C. Circuit Court of Appeals rejected a request from 15 states, tech companies, and advocacy organizations to review last year’s ruling that largely upheld the FCC’s 2017 vote to repeal the Obama-era net neutrality rules. More than 160 startups joined Engine last year in pushing Senate lawmakers to restore the FCC’s rules, which helped keep the Internet a level playing field for companies of all sizes.
Self-driving cars, DMCA on tap next week. The House Energy and Commerce subcommittee on consumer protection is holding a hearing on self-driving vehicles and "promises and challenges of evolving automotive technologies” at 10 a.m. next Tuesday, Feb. 11th. The Senate Judiciary subcommittee on intellectual property is also holding a hearing to examine the Digital Millennium Copyright Act at 2:30 pm on Tuesday, Feb. 11th. The hearing is the first in a series of hearings that the subcommittee plans to hold throughout the year on potential DMCA modernization efforts.
Startup Roundup:
#StartupsEverywhere: Folsom, California. Located in the Sacramento region, Egeria is a new startup that’s working to provide equitable access to public funding through the use of software and data products. We recently spoke with Sedale Turbovsky—Egeria’s founder and CEO—to learn more about his startup’s work, his concerns about public funding transparency, and what federal agencies can do to further promote entrepreneurial engagement.
