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
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.
To Support Tech Companies, U.S. Should Embrace High-Skilled Workers
The ongoing COVID-19 pandemic has brought change to every facet of life and government. While Congress’ focus has largely been on providing direct relief for workers and business owners struggling with the financial impact of the outbreak, recent actions taken by the Trump administration on immigration issues stand to impact the talent needs of American businesses.
#StartupsEverywhere: El Paso, Texas
Based in El Paso, Pioneers 21 is a nonprofit incubator working to unleash the creative and economic potential of the U.S.-Mexico border by supporting startups and small businesses. We recently spoke with Pioneers 21’s Executive Director, Carlos Martínez-Vela, to learn more about the organization’s work supporting local entrepreneurs, the El Paso startup ecosystem, and the importance of attracting talented workers.
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
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.
Engine Submits Comments to EU on Implementing Copyright Policy Directive
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
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.
#StartupsEverywhere: St. Augustine, Fla.
With an entrepreneurial background and experience with influencer-based marketing, Monica Merrill—the Founder and CEO of FlipperSplash—created a platform where small businesses can partner with large or small influencers to effectively market their products and services to a wider audience. We recently spoke with Monica to learn more about FlipperSplash, how brands have been affected by the pandemic, and the goals of the startup moving forward.
The Importance of Strong Liability Limitations for Startups
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
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.
#StartupsEverywhere: Effingham, Ill.
MyAgData is an agricultural-focused data analytics startup that allows farmers to utilize acreage reporting software to simplify their reports for the U.S. Department of Agriculture and for crop insurance as well as giving lenders and insurers unique insights into their customer’s acreage productivity and health. We recently spoke with MyAgData’s CEO and Co-Founder, Deb Casurella, to learn more about the firm, their access to funding opportunities, and how policymakers can work to encourage young talent to stay in rural communities.
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
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.
#StartupsEverywhere: Coatesville, Pa.
H20 Connected manufactures wireless-enabled products like LeakAlertor to help property management and hospitality businesses deal with leaking, overflowing, and running toilets. The startup was incubated in Coatesville, Pennsylvania, to utilize the city’s Qualified Opportunity Zone program to help scale their growth moving forward. We recently spoke with Susan Springsteen, the president of H20 Connected, to learn more about Opportunity Zones, her startup’s work, and the steps that she believes lawmakers should take to strengthen the Paycheck Protection Program for small businesses affected by the ongoing pandemic.
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
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.”
Congressional Startup Day 2020
During the second week of August, more than 40 members of Congress met with over 100 entrepreneurs across the United States as part of Congressional Startup Day. This annual, bipartisan celebration of startups brings together founders and policymakers to discuss the challenges and successes of entrepreneurship in America. Although the COVID-19 outbreak forced many of the meetings this year to be held virtually, lawmakers still spent the week around Congressional Startup Day conversing with entrepreneurs in their states and districts about the policy needs of startups—particularly about the ways in which Congress can better support the country’s startup community amidst the pandemic.