Timing the sowing and watering of crops is as important as ever in agriculture. Jessi Korinek and her co-founders at Nave Analytics are developing a software that uses satellite data to help farmers cut down on water costs for irrigation. We sat down with Jessi to discuss her product, the impact of tariffs on the agricultural industry, and the challenges she faced in receiving federal research and development (R&D) grants.
Startup ecosystem feels the effects of DOGE cuts
The Trump administration’s push for “efficiency” is undercutting key programs and tools that maintain balanced intellectual property frameworks that protect startups against low-quality patents and meritless, but expensive and time consuming, litigation.
With a looming reauthorization deadline later this year, Congress has a chance to renew and improve a government funding program that can be critical to startups engaging in costly R&D.
TLDR: When Congress returns from recess later this month, policymakers must ensure that they are effectively supporting startups in their fourth coronavirus relief package. In order to protect our nation’s startup ecosystem, however, Congress needs to look beyond currently available small business loan programs and examine other policy proposals that will enable startups and entrepreneurs to survive the pandemic’s economic fallout.
The Big Story: Congress extends small business loan program, but startups still need relief. Congress this week extended the deadline for startups and small businesses to apply for emergency funding from the Paycheck Protection Program (PPP), just hours before the loan program was set to expire. Under the measure, the U.S. Small Business Administration can continue to approve and offer PPP loans until August 8th to startups and small businesses that have been financially harmed by the coronavirus pandemic.
TLDR: Telegram paid $18.5 million and returned the proceeds of its coin offering back to investors as part of a settlement with the U.S. Securities and Exchange Commission. The agency sued the firm last year for raising $1.7 billion through an initial coin offering to fund the development of its blockchain project, known as the Telegram Open Network. The settlement comes as U.S. cryptocurrency firms continue to seek regulatory certainty for the industry, including clear guidelines for digital coin offerings.
The Big Story: Congress increases pressure on vital Internet law. Policymakers are ramping up attacks on Section 230 of the Communications Decency Act, the 1996 law that has allowed startups that host user content to thrive. While this law provides online companies of all sizes with the ability to moderate users’ content without being held liable for users’ speech, the latest round of attacks on Section 230 have been largely framed around Internet companies’ content moderation practices—a difficult, time consuming, and expensive task for any online platform.
TLDR: Federal officials are sending conflicting messages about their continued participation in global talks about the creation of a framework for digital services taxes (DSTs). While many of these taxes are targeted at large Internet companies, there are concerns that the startup community will be harmed by the trickle-down effect of increased costs for services and products to offset the taxes.
The Big Story: DOJ proposes changes to bedrock Internet law. The Department of Justice this week released a set of proposals for reforming a bedrock Internet law, a move that would make it more difficult and costly for Internet companies to host users’ content. The announcement comes as some lawmakers and federal officials have called for legislation to scale back Section 230 of the Communications Decency Act, which provides Internet companies of all sizes with the ability to moderate user content without being held liable for what they do or do not take down from their sites.
TLDR: Protecting the collection and use of consumers’ personal information continues to be at the top of mind for lawmakers, with new efforts in Congress looking to address the use of personal information in contact tracing apps amid the coronavirus pandemic, and unnecessarily tying the use of targeted online ads to an unrelated intermediary liability law.
The Big Story: Treasury pushes for ‘much more targeted’ small business relief. Treasury Secretary Steven Mnuchin told the Senate Small Business Committee on Wednesday that the Trump administration is open to including a new round of Paycheck Protection Program (PPP) loans in the next coronavirus relief package, although he said that any future funding “needs to be much more targeted to the industries and small businesses having the most trouble going forward.” Mnuchin added that he is loosening the program’s existing rules in order to ensure that most of the small businesses receiving PPP loans can receive at least some loan forgiveness.
TLDR: Amid the coronavirus pandemic and critical ongoing conversations about race-based inequalities and injustices, Americans are increasingly turning to the Internet to learn, share, and stay informed. That's shining a brighter light on the ways in which Internet platforms handle all kinds of content—including misinformation, violent speech, and alleged infringement from the country's highest office.
In light of recent nationwide protests over police brutality and systemic racism, we’re putting our normal newsletter on hold this week in order to focus on organizations working to address those issues. Technology policy has a role to play in making sure people can stay connected and informed, and the tech industry has a long road ahead in addressing its own systemic inequality. But we’re spending this time listening to and highlighting organizations that have been working to address these issues on a larger scale, and we encourage you to do the same.
The Big Story: White House executive order threatens bedrock Internet law. President Donald Trump signed an executive order yesterday targeting “censorship” by online companies, a dangerous and misguided move that threatens to undermine the bedrock law that has allowed Internet platforms of all sizes to grow. The directive came after Twitter added fact-checking labels to several of President Trump’s tweets about mail-in ballots earlier this week.
TLDR: The U.S. Copyright Office released a long-anticipated report last week which found that the system for resolving claims of online infringement should be updated. While the agency said that it was not recommending any wholesale changes to the current process, it has advocated for updates that would substantially alter the framework for startups that host user-generated content. With more Americans than ever before relying on digital services and online resources to create and share content during the pandemic, it’s critical for lawmakers and federal officials to carefully balance any changes to the law that could have an outsized impact on startups and their users.
The Big Story: Congress working to clarify small business loan program. The U.S. Senate this week tried to double the amount of time that recipients of Paycheck Protection Program loans have to spend the emergency funding, even as House Democrats plan to advance legislation next week that would change accessibility requirements and allow PPP loans to be used over an even longer 24-week timeframe.
TLDR: Federal officials are once again calling for Internet companies of all sizes to undermine secure end-to-end encryption by creating intentional vulnerabilities in their products to facilitate law enforcement access to user data, a move that would risk user privacy and security. The renewed push comes after the Justice Department announced that it unlocked two iPhones belonging to the shooter in last year’s Pensacola Naval Air Station shooting and found that he had been working with al Qaeda.
The Big Story: Broadband access in the time of COVID-19. House Democrats this week introduced the HEROES Act, their proposed $3 trillion coronavirus relief package that includes a dramatic expansion of pandemic-related broadband assistance to help close the digital divide. The inclusion of broadband funding in the proposed relief package comes as policymakers in recent weeks have grown more vocal about the importance of reliable Internet connectivity during the COVID-19 pandemic.
TLDR: As people across the globe continue to depend upon digital services in the midst of the coronavirus pandemic, Internet firms are working overtime to keep their platforms free of misinformation related to the virus. But the rapid proliferation of COVID-19 conspiracy theories is highlighting just how difficult it is for online companies of all sizes to moderate content in a way that promotes user safety.
TLDR: Internet connectivity has become a critical resource for Americans coping with the pandemic, and the increased reliance on digital services is already highlighting gaps in Internet access and sufficient broadband infrastructure across the country. As Congress debates passing a phase four coronavirus relief package that would in part address broadband access concerns, it’s critical for policymakers to understand just how important connectivity is to U.S. startups and consumers.
The Big Story: Lawmakers propose freezing mergers during pandemic. Several congressional Democrats have proposed a temporary halt on certain “big” mergers and acquisitions during the coronavirus pandemic, saying that the outbreak could allow large companies to consolidate their power by buying up smaller firms. While larger tech companies have faced scrutiny in the past for allegedly acquiring potential competitors in order to protect their market share, acquisitions during the COVID-19 pandemic are far more likely to involve larger companies rescuing at-risk startups that would otherwise go out of business. It’s hard to see how blocking these types of acquisitions would promote competition. Efforts to curb what policymakers see as predatory behavior could instead deprive many startups of a critical lifeline they might need to remain in business.
TLDR: Although the U.S. Small Business Administration is once again accepting applications from small businesses for Paycheck Protection Program loans, many startups still remain ineligible for the emergency funding that they need to survive the economic downturn caused by the coronavirus pandemic. It’s critical for lawmakers to pursue other policy proposals that will help startups and small businesses weather the current uncertainty.
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