Digest

Startup News Digest 10/09/20

Startup News Digest 10/09/20

The Big Story: House antitrust report suggests sweeping changes to tech landscape. After spending the past 16 months investigating allegations of anti-competitive practices by Amazon, Apple, Facebook, and Google, the House Judiciary Committee’s Democratic leadership this week released a 449 page report proposing that lawmakers overhaul existing U.S. antitrust laws, including limiting large tech firms’ ability to acquire startups. While policymakers proposed taking a variety of steps to address claims of market dominance and abuse—such as breaking up the largest firms and providing more regulatory authority and resources to federal agencies overseeing the tech industry—lawmakers must remain vigilant that their overall recommendations do not harm competition by hindering startup growth and innovation.

Supreme Court Case on Interoperability Will Have Significant Ramifications for Startups

Supreme Court Case on Interoperability Will Have Significant Ramifications for Startups

TLDR: The U.S. Supreme Court will hear argument this week in the almost decade-long dispute between Google and Oracle over the permissible use of software interfaces—known as application programming interfaces (APIs). Startups and developers rely on APIs as a fundamental tool for developing new software and enabling interoperability. Oracle is asking the Court to upset a long-held understanding that APIs cannot be subject to copyright infringement claims. And a ruling in Oracle’s favor would expose U.S. startups and software developers to sizable new risks, generate more litigation, and increase barriers to startup growth and innovation.

Startup News Digest 10/02/20

Startup News Digest 10/02/20

The Big Story: Congress must keep startups in mind while reviewing the DMCA. The House Judiciary Committee held a hearing this week about § 512 of the Digital Millennium Copyright Act (“DMCA”)—a critical area of the law for startups which provides a balanced and certain framework for addressing allegations of online copyright infringement. As we have explained, if Congress were to consider any revisions, it is essential they carefully weigh how important § 512 is to startups. While much of the Committee’s hearing ignored those needs, there were indications some lawmakers and witnesses are still mindful of startups and the users and Internet-enabled creators who rely on them.

As Congress Politicizes Section 230, Startup Concerns Get Left Out

As Congress Politicizes Section 230, Startup Concerns Get Left Out

TLDR: Many members of Congress are calling for changes to Section 230—a bedrock Internet law that allows Internet platforms to host and moderate user content without having to worry about ruinous lawsuits. But Democrats and Republicans see very different problems with Section 230 and Internet platforms' content moderation practices, and most policymakers’ criticisms focus exclusively on a handful of large companies while ignoring the outsized impact that changes to Section 230 would have on startups.

Startup News Digest 09/25/20

Startup News Digest 09/25/20

The Big Story: Reflecting on the life and career of Justice Ginsburg. Over the past week, extraordinary attention has rightfully been paid to the life and legacy of Supreme Court Justice Ruth Bader Ginsburg and the future of the Court she leaves behind. While Justice Ginsburg’s contributions—and celebrity status—are often couched in terms of her being a bulwark for certain liberal values, her legacy and contributions are not so limited and the reach of her work is woven into the fabric of the country. Indeed, it is apparent her contributions benefited U.S. startups, and her absence on the Supreme Court may soon be felt by the startup community.

Amid Shifting Legal Landscape, Startups Need Congress to Act on Privacy

Amid Shifting Legal Landscape, Startups Need Congress to Act on Privacy

TLDR: While the European Union has moved in recent years to take the lead on enforcing global privacy standards, Congress has let states like California largely dictate the country’s privacy laws as a result of federal inaction on a national data privacy framework. As lawmakers prepare to discuss the importance of crafting comprehensive privacy legislation this week, it’s critical they pursue a framework that balances strong consumer privacy protections with much-needed clarity for startups and entrepreneurs.

Startup News Digest 09/18/20

Startup News Digest 09/18/20

The Big Story: Acquisitions, content moderation become focus of antitrust hearing. A Senate antitrust panel held a hearing this week to examine the impact of Google’s online advertising market on competition, but in what is becoming a routine occurrence, policymakers shifted their focus to other areas, spending considerable time airing unrelated and unsupported claims about Google’s supposed anti-conservative bias and the alleged harms of acquisitions.

Startup News Digest 09/11/20

Startup News Digest 09/11/20

The Big Story: The importance of balanced copyright rules for startups. Startups need balanced, commonsense copyright rules in order to effectively operate at home and abroad. And several ongoing, international discussions about copyright policy are putting this issue in the spotlight. Especially given the outsized role startups play in innovation and economic growth, it is critical to ensure that the startup voice is heard when it comes to crafting policies dictating whether and when platforms can be liable when their users are accused of copyright infringement.

Struggling U.S. Startups Still Waiting for Viable Relief Package

Struggling U.S. Startups Still Waiting for Viable Relief Package

TLDR: Congress is back in session following the August recess, and Senate Republicans plan to vote as soon as tomorrow on a “skinny” coronavirus relief package. It is widely recognized, however, that the legislation is unlikely to advance through the House. That’s why it’s important for lawmakers from both sides of the aisle to work together to craft a legislative package that strengthens small business loan programs and provides long-term support for the nation’s startup community.

Startup News Digest 09/04/20

Startup News Digest 09/04/20

The Big Story: FCC review of Section 230 draws hundreds of comments. The Federal Communications Commission this week received hundreds of public comments in response to a petition from the Trump administration that asks the FCC to rewrite existing law in order to expose Internet companies that host and moderate user-generated content to new legal liability for user posts. Engine submitted comments explaining that the proposed changes are based on unsupported claims and would actually harm innovation and competition in the Internet ecosystem by making it more risky and costly to host and moderate user-generated content.

Tech Companies Sue Patent Office To Restore Patent Review Process

Tech Companies Sue Patent Office To Restore Patent Review Process

TLDR: A lawsuit filed yesterday against the U.S. Patent and Trademark Office by four tech companies seeks to restore review procedures that enhance patent quality and combat abusive litigation brought by so-called “patent trolls.” If successful, the case would restore inter partes review (IPR), a process that makes it easier for startups to push back against frivolous lawsuits brought by patent trolls.

Startup News Digest 08/28/20

Startup News Digest 08/28/20

The Big Story: SEC’s accredited investor update a good first step for startups. The U.S. Securities and Exchange Commission this week updated its “accredited investor” rules—which govern who can invest in early-stage, privately held firms—to allow individuals who do not meet the existing wealth threshold to participate in private capital markets. The previous rules only allowed individuals who earned more than $200,000 per year, or had a net worth of over $1 million, to qualify as accredited investors. The updated rule expands the definition so that potential investors are not judged only by their wealth, but by other features—such as having relevant knowledge and expertise—that can make it easier for qualified individuals to invest in startups.

Trump Administration Ramps Up Pressure on Section 230

Trump Administration Ramps Up Pressure on Section 230

TLDR: The Trump administration is pressuring federal agencies to comply with an executive order that would change a bedrock Internet law in order to address supposed bias from major Internet platforms. President Donald Trump has been pushing agency officials in recent months to weaken the framework—known as Section 230 of the Communications Decency Act—that lets companies host and moderate users’ content without the fear of being sued into bankruptcy. While much of the attention around Section 230 focuses on major Internet companies, the law is especially critical for startups, which would be disproportionately impacted by policy changes in this space.

Startup News Digest 08/21/20

Startup News Digest 08/21/20

The Big Story: Privacy Shield rollback leads to new complaints over U.S. websites. The recent court decision striking down a transatlantic data transfer deal is already having adverse effects for websites of all sizes. This week, a European privacy group founded by Austrian privacy activist Max Schrems filed complaints with European Union data regulators against 101 websites that use tools like Google Analytics and Facebook Connect.

Law Reclassifying Independent Contractors Will Harm California’s Startups

Law Reclassifying Independent Contractors Will Harm California’s Startups

TLDR: Uber and Lyft may have to suspend their services in California after a San Francisco judge ruled last week that the firms must comply with a state law—Assembly Bill 5 (AB 5)—that requires California companies, including “gig economy” platforms, to reclassify many independent contractors as employees. Although the law is ostensibly targeted at larger platforms like Uber and Lyft, it is likely to be an existential threat for smaller startups.

Startup News Digest 08/14/20

Startup News Digest 08/14/20

The Big Story: EU, U.S. negotiating on “enhanced” data transfer pact. The United States and the European Union are discussing the formation of a new transatlantic data transfer pact to replace the Privacy Shield framework struck down by Europe’s top court last month. In a joint press statement released on Monday, Commerce Secretary Wilbur Ross and European Commissioner for Justice Didier Reynders said that they “have initiated discussions to evaluate the potential for an enhanced EU-U.S. Privacy Shield framework to comply with the July 16 judgment.”

Startup News Digest 08/07/20

Startup News Digest 08/07/20

The Big Story: FCC takes next step on Trump’s social media executive order. A federal agency this week moved ahead with a petition from the Trump administration that could open up liability for companies that host user content. Federal Communications Commission Chairman Ajit Pai said on Monday that the agency will receive public comments in response to President Donald Trump’s May executive order on “preventing online censorship” that pushes federal agencies to clarify the meaning of “good faith” content moderation under the law.

Negotiations on Relief Package Must Include Startup Voice

Negotiations on Relief Package Must Include Startup Voice

TLDR: Policymakers and Trump administration officials are holding discussions this week about the impending coronavirus relief package, but the lack of progress on a deal means that Americans and entrepreneurs are still waiting for much-needed support. As deliberations continue, lawmakers should consider a variety of proposals to strengthen currently available small business loan programs and pursue policies that will position startups and entrepreneurs to survive for the long-term.