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.
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
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.
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.
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.
Engine Welcomes Supreme Court Ruling in Google v. Oracle Case Over Fair Use of APIs
“This morning’s decision in Google v. Oracle is a win for startups and developers across the country. The Supreme Court has left the doors open to innovators and entrepreneurs using APIs to create interoperability and compatibility between computer programs. With confirmation that such use is fair, startups can more affordably build software without incurring steep licensing costs and facing the constant risk of litigation.”
Proposals to Change Copyright Law: What Do They Mean for Startups?
Every day, people use the Internet to create and share content with others across the globe—and those users, and the Internet companies they rely on, each depend on a copyright framework some policymakers are looking to change. Specifically, a few members of Congress indicated they may be willing to re-open Section 512 of the Digital Millennium Copyright Act (DMCA). Unfortunately, the policy debate mostly revolves around large companies—both big tech companies and Internet platforms as well as large rightsholders in traditional content industries, like mainstream music or movies. But this area of the law is critical to all types of companies, Internet users, and creators. This post attempts to unpack some recent proposals, in an effort to help more stakeholders—especially tech startups—understand what is happening.
Startups Need Congress to Focus on Balance, Quality, and Inclusion When It Comes to IP
In letters this week to key congressional panels, Engine outlined startup-forward principles and priorities that we hope will guide Congress’s work on patent and copyright law this year. We wrote to the leaders of the Senate’s IP Subcommittee and the House Subcommittee on Courts, IP, and the Internet, encouraging each Subcommittee to promote and preserve balanced IP frameworks, emphasize patent quality, stress modernization, and advance diversity and inclusion.
As Policymakers Turn the Heat up on Tech Policy, Startups Need a Seat at the Table
In a new Medium post, Engine announced the launch of our Startup Agenda 2021, which outlines the policy priorities of the U.S. startup community. The Startup Agenda 2021 covers a range of policy issues that include capital access, connectivity, intellectual property, privacy, and more. As we explain in our post below, there are startups in every state and congressional district across the country, and their perspective is especially critical if policymakers hope to craft rules and regulations that boost innovation and competition.
Startup Community Paying Close Attention to Biden’s Picks for Key Federal Agencies
TLDR: As President Joe Biden’s transition team continues to vet and identify key federal officials, agencies that contribute to technology and small business policy—such as the Federal Communications Commission (FCC), the Federal Trade Commission (FTC), and the U.S. Patent and Trademark Office (USPTO)—will likely see new leaders in the coming months. As the Biden team picks new federal officials, however, it should be guided by a commitment to supporting and enabling the nation’s innovation ecosystem.
Engine Asks Biden-Harris Team to Consider Startups When Naming Next USPTO Director
In a letter to President-elect Joe Biden and Vice President-elect Kamala Harris, Engine outlines principles we hope will guide the incoming administration’s selection of the next director of the U.S. Patent and Trademark Office (“USPTO”). The full text of our letter is below.
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
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
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 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 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
IP Recap - 10/21/20
Last month, the United States Patent and Trademark Office (“USPTO”) announced a reorganization which, among other things, eliminated the positions of Deputy Commissioner and Associate Commissioner for Patent Quality. This is the latest in a series of policy developments which have had the effect of deprioritizing patent quality in the U.S.
Companies Urge Congress to Investigate Policies Shielding Invalid Patents
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.