States gear up to work on AI
Startup policy outlook under second Trump term
Executive coaching should be accessible to anyone who is interested, but oftentimes scaling the education is not practical. With her company Zella Life, co-founder Remy Meraz is democratizing professional development using AI. We sat down with her to discuss AI, independent contractors, and more.
After working in the financial sector for over 20 years, Mical Jeanlys-White founded her own company, WealthMore, a wealth tech with a focus on tackling a key financial barrier—wealth building and management. Her company leverages technology to connect everyday Americans with accessible wealth management services, aiming to provide wealth creation for all. We sat down with her to discuss her journey in raising capital, navigating tax policy, the evolving role of AI, and more.
Vance Reavie is no stranger to entrepreneurship. Using his knowledge from previous ventures, he created an AI platform that intelligently automates manual marketing and merchandising workflows and content generation processes for brands and retailers. We sat down with Vance to discuss the startup ecosystem in Arkansas, AI policy and regulation, grant opportunities, and more.
Today, Engine issued a paper focused on the policy insights needed—and the legislative actions required—to adequately support the expanse of the startup ecosystem, and to grow the innovation economy. We hope this paper can serve as a resource for policymakers considering a wide range of policy issues that impact early-stage companies across the country.
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.
SPACs, or Special Purpose Acquisition Companies, are publicly traded vehicles other companies use as an alternative way to go public. These companies, also known as “blank check” companies, are essentially shell companies that do not have commercial operations. They are formed with the sole purpose of raising capital and merging with or acquiring private companies, so that these acquisitions can go public faster and with fewer costs than a traditional Initial Public Offering (IPO).
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.”
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.
The Big Story: Possible federal privacy framework on the horizon. After years of discussions and negotiations, lawmakers are taking serious steps towards creating a much-needed federal privacy framework that would create consistency for startups and protections for consumers. Earlier this week, the House Energy and Commerce subcommittee on Consumer Protection and Commerce held a hearing discussing the American Data Privacy and Protection Act (ADPPA)—a draft bipartisan, bicameral bill that is the first meaningful step towards a federal privacy law following years of negotiations. Subcommittee Chair Jan Schakowsky (D-Ill.) reportedly said this week that the subcommittee will consider and vote on the bill during a markup next week.
The Big Story: Patent Quality Week examines impact, reach, importance of balanced patent system. Today we close out our second annual Patent Quality Week where we—alongside startup leaders, experts, and industries across the country—set out to demystify the complex patent system and highlight the important ways in which it impacts every person and business in the U.S. With a better understanding of how the system operates, and all the ways we encounter it, we can chart a path to ensure patent policy works for every entrepreneur, innovator, and individual. And we can make sure everyone has a voice in the system.
The Big Story: JOBS Act 4.0 could create more opportunities for startups. Policymakers are considering a sweeping package of proposals that could increase opportunities for startups to access capital and reduce regulatory barriers that make existing opportunities difficult. In comments to the Republican leadership of the Senate Committee on Banking, Housing, and Urban Affairs, Engine explained how the Jumpstart Our Business Startups (JOBS) Act 4.0—as well as potential modifications and additions to the bill—could incentivize investment, open up more avenues for would-be investors, and advance equitable access the startup ecosystem.
The Big Story: Indo-Pacific framework could advance digital trade priorities for startups. Early this week during his visit to Japan, President Biden announced the launch of the Indo-Pacific Economic Framework for Prosperity (IPEF) with 12 countries in the region. The framework—first outlined last year and including Australia, Brunei, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam—is the administration’s primary trade engagement in the region and promises to touch on digital trade issues important to startups, like data flows and regulation of emerging technologies.
The Big Story: Tech waits to see if SCOTUS will let Texas social media law stand. The Internet ecosystem is waiting to see whether the Supreme Court will issue an emergency stay of a lower court ruling from last week that would limit Internet companies’ ability to remove harmful content. The emergency stay could come as early as today. This week, Engine joined the Chamber of Progress and over 20 Internet advocacy groups and civil society organizations in a brief to the court urging them to reverse the Fifth Circuit decision, which overruled a lower court ruling that kept a 2021 Texas social media law from going into effect.
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.
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.
When policymakers think about changing the rules for how companies host and moderate user content, they focus on three or four large Internet companies. But we know from talking to startups across the country every day that all kinds of companies host user content online. They may not be the companies that are top of mind when policymakers write rules, but they’re the companies least equipped to deal with compliance and litigation costs designed with the large industry players in mind.
The startup ecosystem is incredibly broad and diverse, with startup founders launching small businesses with different business models, in different industries, and in cities and towns across the country. But one thing that startup founders from across the spectrum share the knowledge of how difficult it is to run a startup. Founders are often faced with hard choices about how to invest their already limited time and resources against a policy backdrop—which impacts business decisions, investment opportunities, compliance requirements, and more—that can change on a dime and is often written without startups in mind.
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.
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.
Startups urge PTO director to prioritize balance and inclusion. This week, over 50 startups, investors, and innovation support organizations sent a letter to congratulate Kathi Vidal on her new role as Director of the U.S. Patent and Trademark Office (PTO) and to urge her to lead the agency with an eye towards the needs and experiences of the nation’s tech startups. For the startup ecosystem, the patent system can play a valuable role toward supporting innovation, but it has just as much potential to stifle progress when it isn’t working well.
As JOBS Act turns 10, capital access policies back in the spotlight. This week, policymakers are turning their attention to opening up avenues for capital access. Ahead of the 10th anniversary of the Jumpstart Our Business Startups (JOBS) Act, Senator Pat Toomey (R-Pa.) and Senate Banking Committee Republicans unveiled a draft for the JOBS Act 4.0, focused on accelerating economic growth and spurring new business formation.
The Big Story: Potential privacy bill back on the table. Policymakers across the aisle and in both chambers are restarting conversations about creating a long-awaited, comprehensive privacy bill. Conversations about a federal privacy bill aren’t new for this Congress, and the issue has remained a top priority for the startup ecosystem for years.
Big story: New copyright bill would increase cost, risk for startups that host user content. Last week, Senators Thom Tillis (R-N.C.) and Patrick Leahy (D-Vt.) introduced the Strengthening Measures to Advance Rights Technologies Copyright Act of 2022—legislation that would amend Section 512 of the Digital Millennium Copyright Act (DMCA). While the bill is ostensibly aimed at large Internet platforms, it would tee up complex and costly frameworks for Internet startups that encounter user-generated content like comments, reviews, or original artwork.
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