The Big Story: Biden touches on tech during the State of the Union
During the annual State of the Union Address this week, President Joe Biden touched on several of the administration’s policy goals that will impact startup founders, investors, and support organizations across the country.
Biden reiterated his commitment to broadband availability, pledging to “provide affordable high-speed Internet for every American—rural, urban, suburban, and tribal communities.” As we’ve mentioned, reliable, affordable, and accessible broadband is crucial for innovators in communities across the country to launch and join startups.
Biden also discussed the need for privacy protections. We’ve long urged Congress to create a federal privacy framework that provides strong protections for consumers while establishing clear and consistent obligations and compliance requirements for startups, the majority of which don’t have the resources to navigate an increasingly complex mosaic of state privacy laws.
Finally, Biden addressed flaws in the country’s immigration system, many of which keep foreign-born startup founders from building their companies—and creating jobs and economic growth—in the U.S. and exclude foreign-born skilled workers from the U.S. job market, where STEM jobs far outpace the talent pool. The startup ecosystem needs policymakers to make several updates to U.S. immigration law, including increasing the availability of H-1B visas, establishing a visa specifically for startup founders, and creating legal certainty and a pathway to citizenship for Dreamers.
As the Biden administration and members of Congress consider policy priorities for the rest of the year, these types of goals that promote startup growth should be at the top of their list.
Policy Roundup:
FCC nominee heads to the Senate floor. On Thursday, the Senate Commerce Committee held a vote on Gigi Sohn, who has been nominated to the FCC. After an unusually long process, her nomination was advanced in a 14-14 vote along party lines, meaning the Senate has to clear an additional procedural vote on the floor. Sohn is a long-time telecom policy advocate who has championed pro-startup issues, including net neutrality protections.
A push for diversity in patent bar. A new Patent Pipeline Program is aimed at increasing equitable access to patent law careers by training scientists and engineers in patent work and connecting them with law firms. Like the country’s innovation ecosystem, “women and racial minorities are severely underrepresented” in the patent bar, and as we have noted, addressing the lack of diversity in the patent system (and among patent practitioners) can be one part of correcting the problem. As founders await Kathi Vidal’s confirmation as PTO Director, we hope to see increased attention to this inclusion soon.
E&C Hearing features bill impacting online ads. On Tuesday, the House Energy & Commerce Committee held a hearing on several bills impacting the technology sector. One of the bills, the Banning Surveillance Advertising Act, prevents advertising companies and facilitators from accessing personal information in order to target their advertisements. Targeted ads are critical tools for startups with few resources to optimize their marketing expenses and reach customers at a low cost. Engine has long been a proponent of stronger privacy laws that protect consumers and support business innovation—especially a federal privacy framework. As policymakers continue to discuss how to implement privacy protections, they must consider the impact such changes might have for startup competitiveness.
Legal experts raise concerns about pro bono involvement in copyright “small claims” proceedings. Last month, a group of law professors submitted comments to the Copyright Office raising concerns about the plan to have law students provide pro bono legal advice to participants appearing before the Copyright Claims Board. These comments come as the Office works to implement the CASE Act—a law that authorized this soon-to-be-created quasi-court in the Library of Congress to adjudicate “small” copyright infringement claims of up to $30,000 per case. Over the years, we have noted concerns about unfairness and imbalance in that law, and pro bono law student representation has been cited as one safety valve. But these professors highlighted structural features of the CASE Act that will limit the willingness and ability of law students to assist under-resourced parties, exacerbating concerns about more people being forced to navigate potentially complex, risky copyright suits without any counsel.
European Commission proposes Data Act. Last Wednesday, the European Commission proposed the Data Act, a framework designed to promote data sharing among companies and between government and companies. While access to additional data could be a competitive advantage for startups, U.S. startups are concerned that the proposal will add additional complexity to an already cumbersome set of EU data policies that create barriers to entry and operation in Europe.
Celebrating a decade of accomplishments with the startup ecosystem. For the last 10 years, Engine has worked alongside startup founders, investors, and support organizations to raise the startup to policymakers. As Engine turns 10, we’re celebrating a decade of work to #StandWithStartups and highlighting the ways that startups have changed policy debates.
Startup Roundup:
#StartupsEverywhere: Chicago, Illinois. Fifth Star Funds is a venture philanthropy fund that seeks to create a more equitable start-up ecosystem in Chicago, Illinois through early-stage investments. We sat down with Samir Mirza, Co-Founder and Executive Director, and Francisco Martinez, Venture Associate and Head of Marketing Communications, to talk about their organization’s mission, the racial funding gap, and how policymakers can provide much-needed support to help underrepresented founders scale their businesses.
