Digest

Startup News Digest 06/04/21

Startup News Digest 06/04/21

The Big Story: Transatlantic data deal a priority ahead of U.S.-EU summit. Ahead of the U.S.-European Union summit later this month, President Joe Biden is renewing the administration’s focus on negotiating a new deal to let U.S. companies, especially startups, that operate in Europe store and process EU users’ data in the U.S. The two governments must address policy-related obstacles to transatlantic digital trade, including the invalidation of the last data flow deal as well as likely impacts from other EU proposals around digital taxes, artificial intelligence, and online platforms and marketplaces.

Startup News Digest 05/28/21

Startup News Digest 05/28/21

The Big Story: Lawmakers consider SHOP SAFE Act despite outsized impact on e-commerce startups. This week, lawmakers examined the recently reintroduced SHOP SAFE Act, which would place high compliance burdens on e-commerce startups with the goal of deterring trademark infringement. The bill was the subject of yesterday’s hearing held by the House Judiciary’s Subcommittee on Courts, Intellectual Property, and the Internet.

Startup News Digest 05/21/21

Startup News Digest 05/21/21

The Big Story: As broadband subsidy program ramps up, lawmakers eye next steps. The need for universal broadband was back in the spotlight this week as lawmakers discussed the impacts of the digital divide, especially during the pandemic. At a hearing Tuesday, the House Appropriations subcommittee on financial services and general government examined the impact a lack of affordable, reliable broadband has, especially on rural communities and communities of color.

Startup News Digest 05/14/21

Startup News Digest 05/14/21

The Big Story: Endless Frontier Act advances through key Senate Committee with changes. The Senate Commerce Committee voted this week to advance a pared down version of the Endless Frontier Act, clearing it’s path for a floor vote. The bill would invest funds to prioritize research into advanced technologies and would authorize $10 billion to create at least ten regional technology hubs. While the original iteration of the legislation directed $100 billion over five years to the bill’s newly created tech directorate at the National Science Foundation (NSF), after amendment, much of this funding would be directed to other NSF activities, with a portion of funds marked toward the directorate to be diverted to the Department of Energy’s National Laboratories.

Startup News Digest 05/07/21

Startup News Digest 05/07/21

The Big Story: Spotlight back on content moderation as Facebook upholds Trump ban. Internet companies' content moderation decisions are back in the spotlight this week as Facebook’s oversight board—a panel of journalists, activists, and lawyers that reviews the company’s content decisions—announced that former President Donald Trump should remain suspended from the platform, prompting criticism and threats of legislation from Republicans in Congress. Facebook banned Trump in January after the insurrection attempt on January 6th, citing the ongoing risk of political violence. The board also said that Facebook was wrong to impose an indefinite ban and called for the company to decide in the next six months whether to restore Trump’s account, permanently remove him from the platform, or suspend him for a specific timeframe.

Startups Stand to Lose as Countries Implement Their Own Digital Services Taxes

Startups Stand to Lose as Countries Implement Their Own Digital Services Taxes

TLDR: As federal officials hold hearings on potential action against countries that have enacted their own digital services taxes (DSTs), U.S. startups remain concerned that they could be affected by the digital levies in the form of higher costs for needed services, or even subjected to the new taxes themselves. Rather than imposing unilateral DSTs that harm startup growth, countries and global officials should work to reach a uniform digital tax framework that provides certainty for Internet companies of all sizes.

Startup News Digest 04/30/21

Startup News Digest 04/30/21

The Big Story: Biden unveils plan to invest billions in education, child care. President Joe Biden unveiled an ambitious $1.8 trillion proposal—known as the American Families Plan—that would, in part, give Americans expanded access to education, create a federal paid family and medical leave program, and extend the expanded child tax credit included in last month’s stimulus package. In a speech before a joint session of Congress on Wednesday, Biden said the plan—along with his proposed $2 trillion infrastructure package—would help keep the U.S. at the forefront of global competitiveness.

IP Recap - 04/28/21

IP Recap - 04/28/21

Last month, Engine joined an amicus brief in a case at the intersection of intermediary liability and intellectual property law. In Hepp v. Facebook, a plaintiff argued photos of her were taken and posted without her consent, in violation of Pennsylvania’s right of publicity law. And on the theory that state right of publicity claims constitute “intellectual property,” she sought to hold Facebook, Reddit, Imgur, and other platforms liable for those user-generated posts.

Balanced, Certain IP Frameworks are Critical to Support Startups and Drive Innovation

Balanced, Certain IP Frameworks are Critical to Support Startups and Drive Innovation

TLDR: Across the country, small- and medium-sized companies rely on and benefit from balanced and certain intellectual property (IP) laws to innovate and build better businesses. That’s why this week’s celebration of World Intellectual Property Day provides a timely opportunity for U.S. policymakers to better appreciate the importance of such balance and certainty when crafting policy that applies to the emerging startups that are critical hubs of global innovation.

Startup News Digest 04/23/21

Startup News Digest 04/23/21

The Big Story: New Engine report assesses the nation’s startup ecosystem. Engine, with support from the Charles Koch Institute and data prepared and analyzed by Startup Genome, released a new report this week examining trends in the startup ecosystem. The report—"The State of the Startup Ecosystem”—evaluates startup fundraising trends, assesses individual U.S. ecosystems, analyzes startup exits, and contextualizes the capital needs of investor-backed startups.

Lawmakers Are Right to Prioritize Diversity and Inclusion in Innovation

Lawmakers Are Right to Prioritize Diversity and Inclusion in Innovation

TLDR: A key Senate panel is holding a hearing tomorrow to discuss ways to improve diversity within the U.S. patent system. As entrepreneurs across the country call on the government to support more diversity in innovation, and with the country continuing to confront systemic inequities, policymakers must work to ensure that increasing diversity in innovation—both inside and especially outside the patent system—remains a central component of their work.

Startup News Digest 04/16/21

Startup News Digest 04/16/21

The Big Story: Bipartisan bill would boost U.S. tech investments, R&D funding. A key Senate panel held a hearing this week to discuss bipartisan legislation meant to bolster the U.S. technology sector against the growing threat of competition from China. Members of the Senate Commerce Committee used Wednesday’s hearing to discuss how the bill, known as the Endless Frontier Act, would provide long-term investments in research and development, entrepreneurship, and technological advancements in order to solidify America’s leadership in the global innovation economy.

Independent Contractors Serve a Vital Role in the U.S. Startup Ecosystem

Independent Contractors Serve a Vital Role in the U.S. Startup Ecosystem

TLDR: Hiring full-time talent is costly and difficult when a startup is in its early stages, but recent federal efforts have created even more uncertainty for nascent companies that rely upon independent contractors to help them innovate and grow. As Congress and the Biden administration take steps that could narrow the definition of an independent contractor, policymakers must be careful to examine how this push would impact workers, startups, and small businesses across the country.

Startup News Digest 04/09/21

Startup News Digest 04/09/21

The Big Story: Boosting legal immigration will benefit startups, U.S. global leadership. As federal policymakers continue to debate much-needed updates to the nation's immigration system, a report released this week found that the U.S. risks losing its status as the world’s largest economy by 2030 if policymakers do not take steps to expand and increase legal immigration. The study, conducted by FWD.us in collaboration with George Mason University, highlighted how U.S. gross domestic product (GDP) could double by 2050 if the level of permanent and temporary immigrants was increased to more than two million each year.

Supreme Court Ruling in Google v. Oracle a Win for Startups

Supreme Court Ruling in Google v. Oracle a Win for Startups

TLDR: A Supreme Court decision yesterday means that startups and developers should be able to continue to use software interfaces, known as application programming interfaces (APIs), without facing liability for copyright infringement. Startups and developers routinely rely on APIs to create interoperability and compatibility between computer programs, and they had long understood APIs to be exempt from copyright protection. But a yearslong lawsuit between Oracle and Google put that understanding—and the use of APIs—at risk. Now, the Supreme Court has held that using APIs is a fair use under the law, and its reasoning should permit entrepreneurs to continue using APIs when developing innovative products and services.

Startup News Digest 04/02/21

Startup News Digest 04/02/21

The Big Story: Biden unveils infrastructure plan with broadband, tax proposals. President Joe Biden announced an ambitious $2 trillion proposal this week that would rely on a combination of spending and tax credits to upgrade and expand the nation’s infrastructure. In addition to devoting billions of dollars towards upgrading schools, improving roads and bridges, and spurring a shift towards clean energy sources, the plan would also allocate $100 billion towards the expansion of broadband to narrow the nation’s digital divide. In a speech on Wednesday announcing his infrastructure plan, President Biden said the connectivity funding would “make sure every single American has access to high-quality, affordable high-speed Internet.”

As Global Fight Over Digital Services Taxes Heats Up, U.S. Startups Stand to Lose

As Global Fight Over Digital Services Taxes Heats Up, U.S. Startups Stand to Lose

TLDR: As federal officials seek public input regarding the response to countries that have enacted digital services taxes (DSTs) on U.S. Internet companies, the startup community remains concerned that they will be affected by the levies in the form of increased costs for the services and products they rely upon. While the Biden administration and global officials work to reach a uniform digital tax framework, it’s critical that countries—and even U.S. states—refrain from imposing their own digital services taxes that could harm startup formation and success.

Startup News Digest 03/26/21

Startup News Digest 03/26/21

The Big Story: Removing barriers to entry for women entrepreneurs. Although the number of women-founded companies across the globe has doubled over the past decade—from 10 percent in 2009 to 20 percent in 2019—women entrepreneurs still face significant roadblocks when competing in the largely male-dominated technology sector. The gender disparity in the technology sector, driven in part by systemic sexism and responsibilities like child care and family caregiving, makes it more difficult for women entrepreneurs to break into the space with their own unique ideas and visions. Women represent just 11 percent of venture capital investment partners across the U.S., and women-led companies raise an average of 13 percent less in funding than their male counterparts. Women-led startups received only 2.8 percent of VC funding in 2019, while Black and Latino women founders combined to receive just 0.64 percent of total VC investments. That’s why it’s so critical for the startup community and policymakers to confront the challenges women entrepreneurs face and ensure that a diverse range of individuals are able to pursue entrepreneurship.

Content Moderation Debate Needs Startup Voice

Content Moderation Debate Needs Startup Voice

TLDR: A key House panel is holding a hearing this Thursday with the CEOs of Facebook, Google, and Twitter to examine the spread of extremism and misinformation online. It’s critical that policymakers concerned about the proliferation of harmful content across the Internet understand how potential legislative remedies would impact startups and other Internet companies’ ability to moderate user-generated content.

Startup News Digest 03/19/21

Startup News Digest 03/19/21

The Big Story: House passes legislation extending pathway to citizenship for Dreamers. House lawmakers voted yesterday to approve legislation that would give approximately 2.3 million Dreamers—undocumented immigrants brought to the U.S. as minors—certain protections from deportation and would provide a pathway to citizenship if they meet certain criteria. The bill’s passage is a critical step for millions of talented immigrants who help drive innovation and job creation across the tech sector.