TLDR: The Federal Communications Commission and Internet service providers have taken steps to improve broadband access in response to the ongoing coronavirus pandemic, seeking to promote increased connectivity across the U.S. network as more Americans rely on at-home broadband access.
Startup News Digest 03/13/20
The Big Story: UK to start charging digital services tax. The United Kingdom is moving forward with a two percent digital services tax on Internet companies that have a global revenue of more than $648 million, at least $32.4 million of which comes from UK users. The new levy—which is set to go into effect in three weeks—comes after other countries proposed similar taxes, but delayed implementation of their measures in order to allow the Organisation for Economic Co-operation and Development (OECD) time to reach an agreement on a global tech tax.
EARN IT Act Threatens Section 230 Protections
TLDR: A Senate panel this week is planning to discuss new legislation that calls for Internet companies to agree to yet-to-be-determined best practices around detecting and removing child sexual abuse materials or risk losing their critical intermediary liability protections. While startups and other online platforms share lawmakers’ desire to remove problematic and illegal user-generated content from their sites, the legislation—as currently drafted—threatens to disrupt the protections that have allowed the Internet ecosystem as we know it to thrive for more than two decades.
Startup News Digest 03/06/20
The Big Story: Proposed SEC plan raises crowdfunding cap to $5 million. The Securities and Exchange Commission voted to propose a set of amendments to “promote capital formation and expand investment opportunities” for small businesses, including a rule change that would allow startups and other small firms to raise as much as $5 million from crowdfunding.
New Bill Would Target Stock Options of Startup Employees
TLDR: Senate legislation introduced late last week would tax certain employee stock options upon vesting, rather than upon exercise. Although the bill is ostensibly designed to curtail the tax benefits that CEOs and other high-level executives receive, the legislation would harm the startup community by targeting the stock-based incentives that new companies use to attract top-tier talent.
Startup News Digest 02/28/20
The Big Story: Concerns mount over digital tax negotiations. World economic leaders at the G20 summit in Saudi Arabia over the weekend warned that a dispute between the U.S. and European countries over the implementation of digital service taxes could pose a threat to the global economy if an agreement is not reached. The Organisation for Economic Co-operation and Development (OECD) has set an end-of-year deadline to negotiate a global tax overhaul that would allow countries to tax large digital service providers who do not necessarily have a physical presence within their borders.
IRS Planning Summit With Cryptocurrency Startups
Startup News Digest 02/21/20
The Big Story: EU releases blueprint for "tech sovereignty." The European Commission outlined a digital policy proposal this week to restore “technological sovereignty” to the bloc by imposing stricter regulations on large tech platforms and creating new rules for artificial intelligence and data use.
Startup Perspective Critical in 230 Review
Startup News Digest 02/14/20
The Big Story: UK moves forward with plan to regulate online harms. The United Kingdom announced this week that it plans to give British regulators the authority to fine social media companies and online platforms for any harmful content that might be found on their sites—the next step in the country’s plan to combat harmful Internet speech. The regulations would apply to any Internet platform that allows for the sharing of user-generated content in the country.
DMCA Modernization Efforts Must Include Startup Perspective
TLDR: The Senate is convening a hearing later today to discuss the law surrounding accusations of online copyright infringement. As it stands, online platforms (including startups) are not automatically liable for infringement based on content created or posted by their users. As the Senate reviews the law this year, it’s important to consider the interests of startups since changes in the law could create unreasonable burdens on fledgling companies.
Startup News Digest 02/07/20
Pro Act Would Unnecessarily Burden Early-Stage Startups
TLDR: House lawmakers are moving towards a vote on legislation that would threaten workers, startups, and larger companies alike by reclassifying many independent contractors as employees. The bill shares many concerning similarities with California’s “gig worker” law that went into effect at the beginning of the year and has drawn considerable pushback from the state’s startup community.
Startup News Digest 01/31/20
The Big Story: Lawmakers, FCC push for broadband investments. House Democrats introduced a new infrastructure framework that would invest $760 billion over a five-year period in critical transportation and development projects, including $86 billion to help expand broadband access across the United States. The Federal Communications Commission also voted yesterday to approve a $20.4 billion fund to support broadband expansion efforts across rural portions of the country over the next ten years.
State Digital Tax Proposals Threaten Startup Ecosystem
TLDR: As countries continue to debate whether or not to levy digital services taxes on tech companies, several states are considering implementing their own digital tax measures. While the currently proposed state-level bills are unlikely to receive much traction, they demonstrate a growing willingness on the part of state representatives to levy their own taxes against online companies of all sizes.
Startup News Digest 01/24/20
DOJ’s Anti-Encryption Efforts are Harmful to Startups
TLDR: The Department of Justice is continuing its push for tech companies to undermine their users’ security by building in intentional vulnerabilities. In the latest spat between Apple, Attorney General William Barr is claiming that the company is not helping officials unlock two iPhones belonging to the shooter in last month’s deadly shooting at a Florida naval air base, despite the fact that the older model devices can likely be accessed and Apple has already turned over the relevant data in its possession.
Startup News Digest 01/17/20
The Big Story: USMCA, China trade deals move forward. The Trump administration and Congress made significant progress this week on two critical trade deals, with President Donald Trump signing a phase one trade deal with China and the Senate passing the United States-Mexico-Canada Agreement (USMCA).
Startups would suffer from copyright protections for API declarations
TLDR: Later this year, the Supreme Court will weigh in on a long-standing copyright dispute between Oracle and Google over the permissible use of application programming interfaces, or APIs. APIs are software interfaces that startups rely on to promote interoperability and reduce costs. If they were eligible for copyright protection, then companies that own the API copyrights would be able to prevent others from using those APIs without paying for a license. This week Engine filed an amicus brief with the Supreme Court, arguing that APIs should not be eligible for copyright protection, and in particular that extending copyright protections to APIs is an attempt to evade patent law in a way that would unduly harm startups and entrepreneurs.
Startup News Digest 01/10/20
The Big Story: France’s digital services tax could harm startups. U.S. tech companies told the Office of the U.S. Trade Representative (USTR) this week that they support retaliatory tariffs in response to France’s new digital services tax that would impose a three percent tax on online platforms with a global revenue of over 750 million euros and 25 million euros in France. The Trump administration has threatened to impose tariffs of up to 100 percent on certain French imports, such as champagne and cheese, in response to the tax.