IP

Startup Policy: 2020 Year in Review

Startup Policy: 2020 Year in Review

TLDR: Over the course of 2020, policymakers engaged on a variety of critical issues and concerns impacting the nation’s startup community, especially around the COVID-19 pandemic, which upended daily life for millions of Americans. Small businesses and entrepreneurs affected by the pandemic called for Congress to provide nascent companies with the emergency support needed to weather the economic uncertainty. The startup perspective has also been crucial in discussions about the importance of Section 230 for small Internet companies that host user-generated content, changes to a law that provides startups with a balanced framework for addressing allegations of online copyright infringement, policies limiting access to high-skilled talent, and much more. As the end of the year draws near, we wanted to highlight just a few of the policy issues that have affected the startup community in 2020.

Statement on the Digital Copyright Act

Statement on the Digital Copyright Act

The Digital Copyright Act of 2021 from Sen. Thom Tillis (R-N.C.) proposes changes to copyright law that would be bad for startups that host user-generated content and the everyday Internet users and Internet-enabled creators they serve. As currently drafted, the bill would disrupt a statutory framework at the foundation of innovation, creative expression, and economic growth that would not have been possible twenty-five years ago.

Statement on the CASE Act’s inclusion in the omnibus spending bill

Statement on the CASE Act’s inclusion in the omnibus spending bill

We are disappointed by Congress’s decision to include controversial copyright legislation in the must-pass omnibus spending bill. As Engine and several smaller Internet platforms expressed earlier this month, “the CASE Act—as currently drafted—will be fundamentally unfair to and create substantial confusion for” everyday Internet users, small businesses, and Internet-enabled creators across the country. That bill would create an extra-judicial board where certain copyright holders could seek substantial damages—up to $30,000—over alleged copyright infringement.

Engine Asks Supreme Court To Ensure That the Patent Review Process Remains Available To Startups

Engine Asks Supreme Court To Ensure That the Patent Review Process Remains Available To Startups

Engine and the Electronic Frontier Foundation submitted an amicus brief to the U.S. Supreme Court this week in United States v. Arthrex Inc. asking the Court to reconsider a Federal Circuit decision last year that found that administrative patent judges (APJs) of the Patent Trial and Appeal Board (PTAB) were unconstitutionally appointed.

Engine Submits Comments To USPTO on Proposed Changes That Would Weaken Patent Review

Engine Submits Comments To USPTO on Proposed Changes That Would Weaken Patent Review

Engine submitted comments to the U.S. Patent and Trademark Office this week in response to the agency’s request for comment concerning the exercise of discretion to deny inter partes review (IPR) petitions. IPR makes it easier for startups and other small businesses to push back against frivolous lawsuits brought by patent trolls, but the USPTO’s proposal would codify current policies and practices that weaken the patent review process. This would make it more difficult for startups to challenge low-quality patents and open the door to further abusive litigation.

Engine Asks Supreme Court To Curtail Doctrine That Lets Low-Quality Patents Stand

Engine Asks Supreme Court To Curtail Doctrine That Lets Low-Quality Patents Stand

Engine submitted an amicus brief to the U.S. Supreme Court this week asking the Court to reconsider the broad doctrine of “assignor estoppel,” which limits the ability of companies—especially startups—to challenge the validity of certain low-quality patents asserted against them.

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.

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.

Senate Considering Flawed Copyright, Section 230 Bill That Would Hurt Startups and Their Users

Senate Considering Flawed Copyright, Section 230 Bill That Would Hurt Startups and Their Users

This year has been difficult for every individual and company in the country. During a global pandemic, which has caused widespread economic damage and uncertainty, startups are struggling—struggling to find funding, struggling to navigate existing government relief programs, and struggling to maintain jobs and operations (let alone sustain growth). And across the country, people are looking to Washington for support and guidance.

Engine Submits Comments To USTR on China’s Compliance With WTO Commitments

Engine Submits Comments To USTR on China’s Compliance With WTO Commitments

On both the domestic and global scale, startups need balanced, certain IP frameworks and policies which allow the free flow of data in order to grow and succeed. While efforts currently underway in China signal some potential progress on those fronts, there are indications that China’s evolving policy landscape may continue to present impediments to startups hoping to grow across the world.

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.

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.

Engine Submits Letter to Senate on Copyright Fair Use and the DMCA

Engine Submits Letter to Senate on Copyright Fair Use and the DMCA

In recent comments filed with the Senate Judiciary Subcommittee on Intellectual Property, Engine emphasized the importance of copyright fair use and urged that it continue to be protected and permitted online. Fair use is an essential component of copyright law that allows creators and users to engage in certain authorized uses of copyright content, which is important because overly-rigid application of copyright law could otherwise stifle innovation and creativity. And as we explain in the letter, startup platforms in particular benefit from balanced copyright law because they are able to serve users and creators who rely on fair use without having to worry about potentially ruinous copyright infringement litigation.

Engine and R Street File Amicus Brief Urging Court to Prevent Gamesmanship in Patent Damages

Engine and R Street File Amicus Brief Urging Court to Prevent Gamesmanship in Patent Damages

Patent litigation is notoriously expensive and can last for years. For startups in particular, the high costs and risks of these lawsuits are difficult to cover. Startups already operate on thin margins, and do not have excess resources to spend on legal fees or settlements arising from frivolous patent assertions. The mere existence of litigation (or a patent demand) also forces startups to divert attention from R&D, makes it difficult for startups to attract customers and investors, and can cause drops in valuation.