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.
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.
A recent Federal Circuit decision, In re PersonalWeb Technologies LLC, highlights ways companies can protect their customers against abusive patent litigation. There are various legal doctrines, rooted in fairness and efficiency, that can apply—including to protect startups that are accused of infringement based on buying or using someone else’s product or service.
TLDR: Policymakers and Trump administration officials are holding discussions this week about the impending coronavirus relief package, but the lack of progress on a deal means that Americans and entrepreneurs are still waiting for much-needed support. As deliberations continue, lawmakers should consider a variety of proposals to strengthen currently available small business loan programs and pursue policies that will position startups and entrepreneurs to survive for the long-term.
TLDR: The Trump administration and policymakers are putting growing pressure on a bedrock Internet law that allows companies of all sizes to host and moderate user-generated content. Startups depend on this framework—known as Section 230 of the Communications Decency Act—to grow without the fear of being sued into bankruptcy over the user-generated content they host and moderate. Weakening this law would have a disastrous effect on the Internet ecosystem.
TLDR: Europe’s top court last week struck down Privacy Shield, a data transfer pact between the European Union and the United States that allowed U.S. companies to process and store European users’ data in America. The decision, which could have an outsized impact on U.S. startups, stems from U.S. government surveillance programs that European courts have repeatedly found issues with—especially in the wake of the disclosures from former National Security Agency contractor Edward Snowden in 2013. Without the U.S. scaling back its sweeping surveillance programs, however, it’s unlikely that the EU and U.S. will be able to agree on a new framework to replace Privacy Shield—something that growing startups need to reach potential users across Europe.
TLDR: We’re now a month out from Congressional Startup Day, an event highlighting the importance of startup activity across the country. This annual event connects members of Congress with startups in their states and districts to learn more about the successes and challenges of being an entrepreneur. With the coronavirus pandemic having an outsized impact on U.S. startups, Congressional Startup Day serves as a timely opportunity for members to learn more about how they can support and highlight the work of their local entrepreneurs.
TLDR: When Congress returns from recess later this month, policymakers must ensure that they are effectively supporting startups in their fourth coronavirus relief package. In order to protect our nation’s startup ecosystem, however, Congress needs to look beyond currently available small business loan programs and examine other policy proposals that will enable startups and entrepreneurs to survive the pandemic’s economic fallout.
TLDR: Telegram paid $18.5 million and returned the proceeds of its coin offering back to investors as part of a settlement with the U.S. Securities and Exchange Commission. The agency sued the firm last year for raising $1.7 billion through an initial coin offering to fund the development of its blockchain project, known as the Telegram Open Network. The settlement comes as U.S. cryptocurrency firms continue to seek regulatory certainty for the industry, including clear guidelines for digital coin offerings.
TLDR: Federal officials are sending conflicting messages about their continued participation in global talks about the creation of a framework for digital services taxes (DSTs). While many of these taxes are targeted at large Internet companies, there are concerns that the startup community will be harmed by the trickle-down effect of increased costs for services and products to offset the taxes.
TLDR: Protecting the collection and use of consumers’ personal information continues to be at the top of mind for lawmakers, with new efforts in Congress looking to address the use of personal information in contact tracing apps amid the coronavirus pandemic, and unnecessarily tying the use of targeted online ads to an unrelated intermediary liability law.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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