Startup News Digest 07/10/20

The Big Story: Startup community voices concerns about suspension of H-1B visas. U.S. startups are asking the Trump administration to reconsider a recent decision that will limit access to high-skilled talent amid the coronavirus pandemic. In a new letter, Engine and 118 startups, entrepreneurial organizations, and other companies—including Pinterest, Postmates, Reddit, and Twitter—are asking President Donald Trump to reconsider his suspension of work visas to high-skilled foreign workers, including those issued under the H-1B visa program. The letter comes after the president signed an executive order last week temporarily halting the issuance of work visas for foreign workers through the end of the year. 

Entrepreneurs have long been aware of the important role that high-skilled workers play in driving innovation, growth, and competition on a global scale. Rather than taking jobs away from U.S. citizens, these workers—particularly H-1B visa holders—help create new jobs and opportunities by providing founders with the resources they need to effectively scale their companies. As stated in the letter, preventing U.S. companies from hiring these talented workers “will limit the ability of many of these firms to grow and recover from the pandemic’s economic fallout.”

The suspension of work visas for high-skilled immigrants is the administration’s latest attempt to limit immigration opportunities. The U.S. Supreme Court last month rejected the Trump administration’s attempt to end the Deferred Action for Childhood Arrivals (DACA) program—a policy that allowed immigrants brought to the U.S. as children to receive work permits and certain legal protections. As Engine noted at the time of the decision, DACA recipients make significant contributions to the U.S. economy and launch new business ventures at rates that exceed those of U.S. citizens. The White House, however, is reportedly planning to pursue new executive action to rescind the DACA program. Instead of curtailing access to high-skilled talent, the Trump administration should focus on providing startups and entrepreneurs with the access to talent and resources they need, especially as many struggle to stay afloat amidst the COVID-19 pandemic. 

Policy Roundup: 

House panel plans hearing with tech CEOs. The House Judiciary Antitrust Subcommittee announced that it will hold a hearing on July 27th with the CEOs of tech giants Amazon, Apple, Facebook, and Google to discuss competition issues in the digital marketplace. The antitrust subcommittee has been conducting a bipartisan investigation of antitrust issues involving the largest U.S. tech firms.  

Engine leads letter to judiciary committees over PTAB concerns. Engine led a coalition of 14 organizations—including the National Retail Federation, the Coalition Against Patent Abuse, the High Tech Inventors Alliance, and the Internet Association—in dual letters calling on the House and Senate judiciary committees to investigate recent trends at the Patent Trial and Appeal Board which have weakened inter partes review—a critical tool for improving patent quality. 

House Democrats push for reports on COVID-19 misinformation. Leading Democrats on the House Energy and Commerce Committee wrote to Facebook, Google, and Twitter this week, asking the companies to be more transparent about the spread of coronavirus misinformation on their platforms by producing monthly reports for the committee. The request comes after the three companies announced plans to comply with a similar demand from the European Union last month to provide the bloc’s regulators with monthly reports about efforts to combat coronavirus misinformation on their websites. 

EU says platforms don’t need to reveal personal data of copyright infringers. The European Court of Justice ruled this week that Internet companies are not required to disclose personal data—such as email addresses, IP addresses, or telephone numbers—from users who illegally upload copyrighted materials to digital platforms. The court said that, under the European Union’s intellectual property rules, platforms only need to provide infringing users’ postal addresses to rightsholders who request information about the individuals who uploaded their copyrighted content.

Startup Roundup:

#StartupsEverywhere: St. Louis, Missouri. St. Louis is developing a reputation as a hub for entrepreneurs, ranking as one of the top U.S. cities for startups. One of the startups that calls St. Louis home is Venku, an online platform that connects outdoor enthusiasts with exciting on-the-ground experiences. Whether it’s fishing, hiking, hunting, or exploring, Venku improves access to outdoor experiences by allowing people across the country to connect with expert hosts eager to take them on their next adventure.

Global tech startups have laid off almost 70,000 employees. A recent report from UK-based BuyShares found that almost 70,000 tech startup employees across the world have lost their jobs since March as a result of the coronavirus pandemic. The most layoffs have come in the transportation sector, where almost 15,000 employees have been laid off by startups.