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.
The CHIPS Act would provide over $50 billion in subsidies to support the semiconductor industry, as well as funding for 5G wireless deployment. The package is also expected to include significant funding for the National Science Foundation, STEM education initiatives, and regional technology hubs and advanced R&D through the Commerce Department, which could provide a needed boost for innovators. And as Engine has stated in the past, these provisions are a needed step in helping to make the innovation ecosystem more accessible and equitable for more entrepreneurs. Also of note, the expected package is missing notable elements—both good and bad—that were under consideration in past iterations of the bill, including a startup visa and a bill that would create liability for trademark infringement for e-commerce startups.
As policymakers continue to move forward with this slimmed down bill, they need to be mindful to include those provisions to support innovators and not further strip the package of policies that will keep the U.S. startup ecosystem—and overall economy—competitive.
Policy Roundup:
Key House panel advances bipartisan privacy bill. This week the House Energy and Commerce Committee passed an amended version of the American Data Privacy and Protection Act (ADPPA). The bill has changed in several ways since its introduction, including a larger threshold to determine which companies qualify for the bill’s narrow small business exemption, an expanded definition of sensitive information, and a provision limiting private lawsuits against very small entities, and some lawmakers expressed during the markup that the bill should be further changed before it’s considered by the entire chamber in a House floor vote. While the bill could and should be further amended to best support the startup ecosystem. Engine applauds the monumental step towards creating a uniform and consistent federal privacy framework.
FCC proposes new broadband definition. Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel proposed this week to redefine the national standard for minimum broadband speed to 100 Mbps for download, and at least 20 Mbps for upload. This change would be the first since 2015, when the FCC set the current standard of 25 Mbps download and 3 Mbps upload. Rosenworcel cites the global pandemic as a reason for the change to ensure broadband needs meet the digital divide, and provisions such as the current 25/3 metric don’t continue to “mas[k] the extent to which low-income neighborhoods and rural communities are being left behind and left offline.” Improving broadband accessibility and quality would help get more people—including startup founders and employees—in more places the Internet access they need to fully participate in a twenty-first century economy and world.
Democrats unveil new immigration bill. On Friday, Rep. Zoe Lofgren (D-Calif.) and six other Democrats announced new legislation—the Renewing Immigration Provisions of the Immigration Act of 1929 (RIPIA), which updates existing law that allows DHS to register individuals that have met certain requirements for permanent residency. The legislation would amend the original registry date with an evergreen eligibility, so that immigrants, including Dreamers, could apply for permanent resident status if they have been in the U.S. for at least seven years. As we’ve long stated, immigrants are overwhelmingly entrepreneurial, accounting for more than 25 percent of entrepreneurs in the U.S., and serve as a critical source of STEM talent for the innovation ecosystem. This legislation could open up more opportunities to build a more diverse startup ecosystem where everyone can contribute.
Recent findings of improper influence suggest need for renewed transparency in patent review. On Thursday, the House’s subcommittee on intellectual property held the second in a series of hearings about the Patent Trial and Appeal Board (PTAB)—a body within the patent office that can, among other things, take a second look at issued patents that are likely-invalid and clear out those that should not have been granted. The hearing centered on an ongoing study by the Government Accountability Office (GAO) to investigate concerns that, in the past few years, patent office management applied pressure on PTAB judges to influence policy and patentability decisions outside the public eye. Members and witnesses at the hearing indicated how the PTAB has had an overall positive influence on patent quality in the U.S., but in light of GAO findings about a recent increase in oversight practices that limit PTAB independence, there was general agreement that we need more transparency in decisionmaking and setting policy for these patent reviews.
Startup Roundup:
#StartupsEverywhere: Manhattan Beach, California. BadVR’s immersive analytics platform uses virtual reality and machine learning to make complex datasets easier to understand for everyday users. Founder and CEO Suzanne Borders spoke to us about her company, her experience with the Small Business Innovation Research (SBIR) program, and how she navigates varying state laws and regulations as a remote employer.
