Weekly Digest

As Policymakers Turn the Heat up on Tech Policy, Startups Need a Seat at the Table

As Policymakers Turn the Heat up on Tech Policy, Startups Need a Seat at the Table

In a new Medium post, Engine announced the launch of our Startup Agenda 2021, which outlines the policy priorities of the U.S. startup community. The Startup Agenda 2021 covers a range of policy issues that include capital access, connectivity, intellectual property, privacy, and more. As we explain in our post below, there are startups in every state and congressional district across the country, and their perspective is especially critical if policymakers hope to craft rules and regulations that boost innovation and competition.

Startup Community Paying Close Attention to Biden’s Picks for Key Federal Agencies

Startup Community Paying Close Attention to Biden’s Picks for Key Federal Agencies

TLDR: As President Joe Biden’s transition team continues to vet and identify key federal officials, agencies that contribute to technology and small business policy—such as the Federal Communications Commission (FCC), the Federal Trade Commission (FTC), and the U.S. Patent and Trademark Office (USPTO)—will likely see new leaders in the coming months. As the Biden team picks new federal officials, however, it should be guided by a commitment to supporting and enabling the nation’s innovation ecosystem.

Efforts to Undermine H-1B Visa Program Will Harm U.S. Tech Sector

Efforts to Undermine H-1B Visa Program Will Harm U.S. Tech Sector

TLDR: Although the technology industry remains hopeful that the incoming Biden administration will overturn President Trump’s harmful immigration policies, startups and other businesses are concerned that a federal rule published in the last days of Trump’s term would further weaken and restrict access to the H-1B visa program. Tech companies rely upon the significant contributions of foreign-born workers to grow their businesses, but ongoing efforts to limit access to crucially-needed talent will only drive high-skilled workers to other nations.

Startup Policy: 2020 Year in Review

Startup Policy: 2020 Year in Review

TLDR: Over the course of 2020, policymakers engaged on a variety of critical issues and concerns impacting the nation’s startup community, especially around the COVID-19 pandemic, which upended daily life for millions of Americans. Small businesses and entrepreneurs affected by the pandemic called for Congress to provide nascent companies with the emergency support needed to weather the economic uncertainty. The startup perspective has also been crucial in discussions about the importance of Section 230 for small Internet companies that host user-generated content, changes to a law that provides startups with a balanced framework for addressing allegations of online copyright infringement, policies limiting access to high-skilled talent, and much more. As the end of the year draws near, we wanted to highlight just a few of the policy issues that have affected the startup community in 2020.

Startups Looking to Policymakers to Craft a Roadmap for Recovery

Startups Looking to Policymakers to Craft a Roadmap for Recovery

TLDR: As the year draws to a close, Congress has yet to cross the finish line on another much-needed relief package to provide economic relief for Americans, including small businesses and entrepreneurs. But even as a bipartisan group of policymakers introduces a two-part relief package this week, U.S. entrepreneurs are still eagerly waiting for assistance that will help ensure the long-term survival of the country’s startup ecosystem.

Digital Services Taxes Will Harm Startups Across the World

Digital Services Taxes Will Harm Startups Across the World

TLDR: As intergovernmental organizations and countries continue to discuss implementing their own digital services tax (DST) frameworks on multinational Internet companies, France has notified large online platforms that they must begin paying the country’s levy this month while Canada recently announced plans to impose its own DST. Although most DSTs under consideration—as well as those that have already been implemented—target large, mostly U.S.-based tech companies, the startup community remains concerned that the burden of the taxes will be passed on to smaller companies and users in the form of increased costs for products and services.

Last Minute Moves on Section 230 Would Be Selling Out Startups

Last Minute Moves on Section 230 Would Be Selling Out Startups

TLDR: As the year winds down, Republican policymakers are making multiple eleventh-hour attempts to undermine a foundational Internet law that has drawn the ire of President Donald Trump in the lead up to and aftermath of the 2020 election. This week, the Senate Judiciary Committee is slated to consider a bill to reform Section 230—the law that creates intermediary liability limitations for online services that host user-generated content—and the Trump administration is reportedly threatening to veto the annual defense authorization bill if it does not include Section 230 reforms.

Limiting High-Skilled Visas Hurts U.S. Startups

Limiting High-Skilled Visas Hurts U.S. Startups

TLDR: As the technology industry looks to President-elect Joe Biden to overturn the Trump administration’s immigration policies limiting access to high-skilled foreign talent, startups are continuing to pressure Congress to defend and expand the H-1B visa program. Tech companies rely upon the contributions of high-skilled foreign-born workers to drive innovation, but limiting access to this talent—particularly during the pandemic—could harm the long-term growth of U.S. startups.

Despite Big Tech Focus, Startups Stand to Lose in 230 Debate

Despite Big Tech Focus, Startups Stand to Lose in 230 Debate

TLDR: A Senate panel is holding a hearing this morning with the CEOs of Facebook and Twitter to discuss Section 230 and allegations of political bias in the context of the 2020 presidential election. Although policymakers are continuing to scrutinize Section 230 because of supposed censorship by the largest tech companies, any changes to the law would have an outsized impact on U.S. startups that rely on the bedrock Internet law in order to host and moderate user content without the fear of potentially crippling lawsuits.

Congress Turns Attention Back to COVID Relief During Lame-Duck Session

Congress Turns Attention Back to COVID Relief During Lame-Duck Session

TLDR: As Congress returns to work following President-elect Joe Biden’s victory last week, policymakers may finally be turning their attention back to providing economic relief to Americans affected by the coronavirus pandemic. Small businesses and U.S. workers have already waited months for policymakers to offer a viable stimulus package, and it’s well past time for lawmakers to unite behind a proposal that provides long-term support for the nation’s startup ecosystem.

Startups, Not Big Tech, Benefit the Most from Section 230

Startups, Not Big Tech, Benefit the Most from Section 230

TLDR: A Senate panel is preparing to hold a hearing tomorrow with the CEOs of Facebook, Google, and Twitter to discuss Section 230 and allegations of political bias by big tech firms. Although Section 230 has drawn scrutiny from policymakers because of the actions of large Internet companies, the law allows platforms of all sizes to host user content and engage in content moderation without the fear of potentially crippling lawsuits. Any changes to the law will have an outsized impact on the U.S. startup ecosystem.

White House Efforts To Undermine Visa Programs Will Harm Startup and Tech Innovation

White House Efforts To Undermine Visa Programs Will Harm Startup and Tech Innovation

TLDR: The U.S. tech industry and startup ecosystem rely upon the important contributions of high-skilled foreign talent to drive innovation and economic growth. But the Trump administration’s efforts to undermine the country’s visa programs by suspending work visas for immigrants and attempting to narrow eligibility for H-1B visas will harm domestic innovation and drive qualified talent to other countries.

Startups Need Lawmakers to Find a Roadmap for Recovery

Startups Need Lawmakers to Find a Roadmap for Recovery

TLDR: U.S. startups are in need of further economic relief to support their business operations amid the coronavirus pandemic. In a recent survey conducted by Engine, a majority of respondents who received federal assistance said the financial support they obtained was insufficient, and entrepreneurs voiced support for a variety of more-targeted policy proposals—such as equity investments, forgivable loans, a startup fund, tax credits, and grants—that could help provide them with the assistance they need during this difficult time.

Supreme Court Case on Interoperability Will Have Significant Ramifications for Startups

Supreme Court Case on Interoperability Will Have Significant Ramifications for Startups

TLDR: The U.S. Supreme Court will hear argument this week in the almost decade-long dispute between Google and Oracle over the permissible use of software interfaces—known as application programming interfaces (APIs). Startups and developers rely on APIs as a fundamental tool for developing new software and enabling interoperability. Oracle is asking the Court to upset a long-held understanding that APIs cannot be subject to copyright infringement claims. And a ruling in Oracle’s favor would expose U.S. startups and software developers to sizable new risks, generate more litigation, and increase barriers to startup growth and innovation.

As Congress Politicizes Section 230, Startup Concerns Get Left Out

As Congress Politicizes Section 230, Startup Concerns Get Left Out

TLDR: Many members of Congress are calling for changes to Section 230—a bedrock Internet law that allows Internet platforms to host and moderate user content without having to worry about ruinous lawsuits. But Democrats and Republicans see very different problems with Section 230 and Internet platforms' content moderation practices, and most policymakers’ criticisms focus exclusively on a handful of large companies while ignoring the outsized impact that changes to Section 230 would have on startups.

Amid Shifting Legal Landscape, Startups Need Congress to Act on Privacy

Amid Shifting Legal Landscape, Startups Need Congress to Act on Privacy

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.

Struggling U.S. Startups Still Waiting for Viable Relief Package

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.

Tech Companies Sue Patent Office To Restore Patent Review Process

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.

Trump Administration Ramps Up Pressure on Section 230

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.