The Big Story: Patent policy conversations need startup voices. Policymakers are continuing to evaluate several aspects of the patent system—one of many areas where policymakers need to account for startup voices and experiences to craft policy that promotes their success. This summer, IP subcommittees in both the Senate and the House held hearings about the Patent Trial and Appeal Board (PTAB)—a venue within the Patent and Trademark Office (PTO) that can take a second look at likely-invalid patents and weed out those that should not have issued.
Startup News Digest 08/05/22
The Big Story: Immigration reform is key for innovation, competitiveness. Pressure is building on lawmakers to address flaws in the country’s immigration system that keep the tech sector—including startups—from having the talent it needs. Following the recent passage of a sweeping competitiveness package, the Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) and Science Act, members of the tech industry are calling to attention the need for immigration reform to keep the sector competitive.
Statement on Patent Eligibility Restoration Act
The following statement is attributed to Kate Tummarello, Executive Director of Engine, regarding the introduction of the Patent Eligibility Restoration Act of 2022:
Statement:
“The Patent Eligibility Restoration Act would open doors to the type of weak, overbroad patents that preempt innovation and harm competition. It would allow a few companies to use the patent system to tie up the fundamental building blocks startups currently rely on to build and grow, exposing startups to more threats of litigation over low-quality patents. As Congress continues to evaluate legislation in this area, we look forward to continuing to work with them toward proposals that can promote startup success.”
Startup News Digest 07/29/22
The Big Story: New net neutrality bill would benefit startups. Lawmakers are restarting the stalled conversation around net neutrality, the idea that Internet service providers (ISPs) shouldn’t be able to charge websites and online services—including those run by startups—for better, faster access to their users. This week, Sen. Ed Markey (D-MA) and Sen. Ron Wyden (D-OR), introduced the Net Neutrality and Broadband Justice Act—a bill that would reclassify broadband to give the Federal Communications Commission (FCC) authority to regulate ISPs, including on net neutrality.
Startup News Digest 07/22/22
The Big Story: CHIPS Act takes precedence in USICA developments. The Senate is moving forward with pared-down competitiveness legislation following Tuesday’s procedural vote, which cleared a key procedural hurdle. While the narrower package largely focuses on subsidies for the semiconductor industry, it is also expected to include some of the larger bill’s provisions to increase funding to broadly support U.S. innovation. Senators expect to tee up final passage next week, which would then send the bill to the House for consideration.
Startup News Digest 07/15/22
The Big Story: Hope fades for pro-startup provisions in U.S. competitiveness package. After months of negotiations, Congress has hit another roadblock to advancing a compromise version of two bills aimed at boosting U.S. competitiveness: the Senate’s United States Innovation and Competition Act (USICA) and the House’s America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (COMPETES) Act.
Startup News Digest 07/08/22
The Big Story: Copyright Office concludes ancillary copyright protections are not warranted. In a recent report, the U.S. Copyright Office explained why it does not recommend expanding or adopting new copyright-like protections for press publishers. The Copyright Office’s study was rooted in concerns about supporting vitally important local news media, but it focused specifically on whether policymakers should extend copyright-like protections (also known as “ancillary copyright”) to sharing hyperlinks and quoting news headlines or snippets of articles. Last week’s report concluded that it is not clear any new copyright-like protections would solve problems facing press publishers, while those sorts of copyright expansions would have “critical policy and Constitutional dimensions.”
Startup News Digest 06/24/22
The Big Story: Patent policy discussions resurface in D.C. this week. This was an active week for patent policy conversations in D.C., with the Senate, House, and Patent and Trademark Office (PTO) all weighing in. Procedures for reviewing low-quality patents took center stage, with many focused on the role the Patent Trial and Appeal Board (PTAB) plays in the startup and small business ecosystems. It is imperative that policymakers who want to understand the full impact of the PTAB—particularly in regards to U.S. startups—ensure startup voices have an equal seat at the table when the topics are discussed.
IP Recap - 06/15/2022
Standard-essential patents (SEPs) are getting increasing attention in policy debates. For example, the Biden administration recently withdrew a problematic SEP policy from 2019, but has not yet replaced it with anything. In late 2021, federal agencies published a draft SEP policy that signaled promising steps towards restoring balance—balance that could free up more space for innovation, improve the landscape for competition in connected devices and beyond, and promote affordable consumer access to the latest technology. But the nation is still waiting for a decision on that 2021 draft policy, and it remains to be seen what last week’s withdrawal of existing policy without a replacement means. This is a complex area of patent law, which big companies (often foreign companies) dominate. It can feel very opaque to outsiders, but everyone, including startups, has a lot at stake in conversations around balanced SEP policy. Especially as we move towards broader adoption of 5G and Internet of Things (IoT) technology, domestic startups have a vital perspective that has to be accounted for as the government moves towards more balanced SEP implementation and enforcement.
What we heard from startups this Patent Quality Week
The U.S. patent system impacts the lives and affects the work of every person and business across the country—including startups. But when the system becomes too complex or burdensome, when bad actors and invalid patents stand in the way of innovation, the system can block the progress it is supposed to foster. And oftentimes small businesses, the public, and even policymakers are in the dark about the system’s problems, frustrating our ability to solve them. That’s why during our second annual Patent Quality Week, Engine and the Developers Alliance hosted a conversation with startup leaders across the country about the various, sometimes harmful, ways they experience the patent system.
The 101 on Section 101 (and More)
Startup News Digest 05/13/22
The Big Story: Big week for Biden’s broadband efforts. The Biden administration is honing in on broadband expansion this week with new partnerships with Internet providers to ensure low-cost broadband for low-income Americans and the kickoff of a program to make available $45 billion for state broadband initiatives. Reliable, accessible, affordable broadband is crucial to the startup ecosystem and innovators across the country.
Startup News Digest 05/06/22
The Big Story: Administration action easing student loan debt could spur entrepreneurship. With student debt forgiveness back in the news, policymakers have an opportunity to ease the tough road to entrepreneurship, especially for underrepresented founders. Last week, the Biden administration indicated an intent to enact student loan forgiveness in the coming weeks, as millions of borrowers continue to struggle with high federal student debt balances. While the details are still unclear on what exactly forgiveness would look like and who would be eligible, one thing is clear: excessive student loan debt serves as a barrier to entrepreneurship for many.
Startup News Digest 04/29/22
The Big Story: EU advances overhaul of content moderation rules. Early Saturday morning, the European Union reached an agreement on a final version of landmark legislation to govern online intermediaries hosting user content in the EU. The legislation, known as the Digital Services Act (DSA), will build on existing EU law and create new obligations for companies—including startups—that will require additional staff, development of new tools, and attention toward compliance in order to serve users in the EU.
Startup News Digest 04/22/22
The Big Story: Startups should be prominent voice in merger guidelines re-write. This week, Engine submitted comments in response to a request for information (RFI) from the Federal Trade Commission (FTC) and the Department of Justice (DOJ) Antitrust Division on merger enforcement. The agencies issued the RFI in January as they move toward re-writing the merger guidelines, guidance that outlines how the agencies will analyze prospective mergers, which is traditionally relied on by the agencies, companies, and courts alike. Sound merger enforcement that mitigates illegal anticompetitive behavior is important for startup success, but policymakers must balance those potential harms with the benefits of acquisitions. If the new guidelines are too restrictive, they risk burdening legal transactions—including those of startups, thereby limiting startups’ exit opportunities and stemming the flow of capital in the startup ecosystem.
Letter Urges PTO Leadership to Prioritize Startups, Engage Their Voices
Letter Urges PTO Leadership to Prioritize Startups, Engage Their Voices. Today, over fifty startups, entrepreneurs, innovation support organizations, and investors from across the country joined in a letter to the incoming Director of the Patent and Trademark Office (PTO), Kathi Vidal, urging her to engage with the needs and experiences of startups and small business innovators.
The So-Called “SMART Copyright Act of 2022,” and What it Means for Startups
A new bill would make major changes to the way startups that encounter user content—from podcasts to reviews to direct messages—are expected to handle potential copyright infringement online. It would authorize new requirements for startups that encounter user-generated content to use filtering technologies.
Startup News Digest 02/18/22
The Big Story: Over 100 startups, investors, organizations defend QSBS tax treatment. This week, more than 100 startups, startup investors, and startup support organizations sent a letter to Congress urging them to preserve the current tax treatment of Qualified Small Business Stock (QSBS), which helps startups attract early-stage investment and employees.
IP Recap - 02/17/22
Last month, Supreme Court Chief Justice John Roberts issued his annual report on the Federal Judiciary, in part highlighting growing concerns about judicial assignment of patent cases—concerns connected to a rapidly growing number of lawsuits being filed by so-called “patent trolls” in one court in Waco, Texas. This year the Judicial Conference of the United States will study the issue of how judicial assignment policies in federal trial courts are enabling plaintiffs to pick judges in a way that is driving up the volume of litigation and undermining confidence in the system.
Startup News Digest 02/11/22
The Big Story: EARN IT Act moves forward despite concerns from lawmakers, advocates, and industry. A bill moving through the Senate would amend critical Internet legal frameworks that startups rely on to host user-generated content and disincentivize startups from using privacy and security-enhancing measures like encryption.