TLDR: Amid the coronavirus pandemic and critical ongoing conversations about race-based inequalities and injustices, Americans are increasingly turning to the Internet to learn, share, and stay informed. That's shining a brighter light on the ways in which Internet platforms handle all kinds of content—including misinformation, violent speech, and alleged infringement from the country's highest office.
DMCA’s Safe Harbor Provisions Allow Startups to Grow and Thrive
TLDR: The U.S. Copyright Office released a long-anticipated report last week which found that the system for resolving claims of online infringement should be updated. While the agency said that it was not recommending any wholesale changes to the current process, it has advocated for updates that would substantially alter the framework for startups that host user-generated content. With more Americans than ever before relying on digital services and online resources to create and share content during the pandemic, it’s critical for lawmakers and federal officials to carefully balance any changes to the law that could have an outsized impact on startups and their users.
Encryption Is Critical for Startup Security, Despite DOJ Spotlight
TLDR: Federal officials are once again calling for Internet companies of all sizes to undermine secure end-to-end encryption by creating intentional vulnerabilities in their products to facilitate law enforcement access to user data, a move that would risk user privacy and security. The renewed push comes after the Justice Department announced that it unlocked two iPhones belonging to the shooter in last year’s Pensacola Naval Air Station shooting and found that he had been working with al Qaeda.
Combating the Spread of COVID-19 Misinformation
TLDR: As people across the globe continue to depend upon digital services in the midst of the coronavirus pandemic, Internet firms are working overtime to keep their platforms free of misinformation related to the virus. But the rapid proliferation of COVID-19 conspiracy theories is highlighting just how difficult it is for online companies of all sizes to moderate content in a way that promotes user safety.
Broadband Access Critical to Startups, Consumers
TLDR: Internet connectivity has become a critical resource for Americans coping with the pandemic, and the increased reliance on digital services is already highlighting gaps in Internet access and sufficient broadband infrastructure across the country. As Congress debates passing a phase four coronavirus relief package that would in part address broadband access concerns, it’s critical for policymakers to understand just how important connectivity is to U.S. startups and consumers.
Looking Beyond PPP Loans for Startup Relief
TLDR: Although the U.S. Small Business Administration is once again accepting applications from small businesses for Paycheck Protection Program loans, many startups still remain ineligible for the emergency funding that they need to survive the economic downturn caused by the coronavirus pandemic. It’s critical for lawmakers to pursue other policy proposals that will help startups and small businesses weather the current uncertainty.
Startups Need More Than Current Relief Loans
TLDR: Congress is set to allocate additional funding to the U.S. Small Business Administration’s Paycheck Protection Program to aid small businesses coping with the economic fallout of the coronavirus pandemic, but available loan programs are not doing enough to support startups that are in desperate need of financial assistance. As policymakers continue to evaluate legislative and regulatory responses to the ongoing outbreak, it’s imperative that they pursue policies—such as public-private equity investments, R&D tax credits, and forgivable loans beyond payroll expenses—that can adequately support the nation’s startup ecosystem.
Surveys Show Startups Need Immediate Assistance
TLDR: Surveys conducted by Engine and other entrepreneurial organizations show that U.S. startups need further economic relief to sustain their operations in the midst of the coronavirus pandemic. Almost two-thirds of respondents to our survey said their startups are in need of emergency financial support, even as entrepreneurs told us they are still seeking certainty that they will be eligible to apply for existing government programs.
IP Recap - 04/09/20
During these unprecedented times, the U.S. Court of Appeals for the Federal Circuit is one of the many institutions taking steps to avoid the spread of COVID-19: shifting to telephonic proceedings, releasing live audio of oral arguments, restricting in-person access to court buildings, and modifying operations. But the court is continuing its work, issuing new opinions every day.
SBA’s Affiliation Rules Still Unclear for VC-Backed Startups
TLDR: The startup community is still waiting for clarity about whether venture capital-backed startups are eligible for small business loans included in the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, despite suggestions by federal officials that the issue would be addressed shortly. To better understand the relationship between economic relief efforts and startups, we are asking companies to fill out a brief survey here to help determine how the government can clarify existing rules—such as the SBA’s affiliation rules—to better protect the nation’s startup ecosystem.
COVID-19 Resources for Startups
TLDR: COVID-19 has put unprecedented stress on global health systems and the economy, but a variety of public and private institutions are offering resources and developing tools to try and help businesses. We have compiled a list of resources on our website to help startups navigate these uncertain times—from guidance on protecting the health and safety of teams, to information about accessing federal economic relief.
Senate Stimulus Package Should Protect Startups, Self-Employed
The Importance of Connectivity During a Pandemic
EARN IT Act Threatens Section 230 Protections
TLDR: A Senate panel this week is planning to discuss new legislation that calls for Internet companies to agree to yet-to-be-determined best practices around detecting and removing child sexual abuse materials or risk losing their critical intermediary liability protections. While startups and other online platforms share lawmakers’ desire to remove problematic and illegal user-generated content from their sites, the legislation—as currently drafted—threatens to disrupt the protections that have allowed the Internet ecosystem as we know it to thrive for more than two decades.
New Bill Would Target Stock Options of Startup Employees
TLDR: Senate legislation introduced late last week would tax certain employee stock options upon vesting, rather than upon exercise. Although the bill is ostensibly designed to curtail the tax benefits that CEOs and other high-level executives receive, the legislation would harm the startup community by targeting the stock-based incentives that new companies use to attract top-tier talent.
IRS Planning Summit With Cryptocurrency Startups
Startup Perspective Critical in 230 Review
DMCA Modernization Efforts Must Include Startup Perspective
TLDR: The Senate is convening a hearing later today to discuss the law surrounding accusations of online copyright infringement. As it stands, online platforms (including startups) are not automatically liable for infringement based on content created or posted by their users. As the Senate reviews the law this year, it’s important to consider the interests of startups since changes in the law could create unreasonable burdens on fledgling companies.
Pro Act Would Unnecessarily Burden Early-Stage Startups
TLDR: House lawmakers are moving towards a vote on legislation that would threaten workers, startups, and larger companies alike by reclassifying many independent contractors as employees. The bill shares many concerning similarities with California’s “gig worker” law that went into effect at the beginning of the year and has drawn considerable pushback from the state’s startup community.
State Digital Tax Proposals Threaten Startup Ecosystem
TLDR: As countries continue to debate whether or not to levy digital services taxes on tech companies, several states are considering implementing their own digital tax measures. While the currently proposed state-level bills are unlikely to receive much traction, they demonstrate a growing willingness on the part of state representatives to levy their own taxes against online companies of all sizes.