The 3 Biggest Legal Issues Facing American Entrepreneurs in 2021How legislation could affect three modern-and extremely successful-industries: content creation, cryptocurrency, social media.
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2020 has been a tough year forsmall businesses. Whether you've already established a business or are looking to start one, the current economic climate has been surprising, to put it mildly.
To make matters worse, the American political climate has been equally tumultuous—which carries large consequences for many entrepreneurs. I've outlined three of the most relevant legal issues that we're likely to face over the next few years, as well as the ramifications they have on three modern and extremely successful industries.
1. Content creators and the DMCA
A story broke last year about asurveyasking children (and their parents) around the world what they wanted to be when they grew up. The top response among children in the U.S. and UK was "YouTuber," whereas China's top response was "astronaut."
Simultaneously, the online broadcasting platform Twitch has exploded in popularity afterbeing acquired by Amazon in 2014. The viewership and engagement with this platform has grown to rival YouTube—and surpass cable television—thanks in no small part due to record-smashing broadcasts withcelebritiesandpoliticians.
The rise of these two video publishing platforms alongside countless others for publishing creative content online has helped create a Gen-Z friendly entrepreneurial niche:content creation. However, there have been some growing pains in the process, and one piece of legislation looks to be a potential cause for future concerns.
What's the issue?
TheDigital Millennium Copyright Act (DMCA)is a law that seeks to limit the ability for individuals and organizations from using the internet to circumvent copyright law. It predates the creation of YouTube and Twitch, but its existence has defined many controversies on these two platforms.
On Twitch, a surge of DMCA takedown requests on videos resulted in huge financial consequences for many streamers hosting content on the platform, causing an outcry that necessitated anofficial statementfrom the company.
YouTube's community of creators have also been significantly affected by the DMCA, with gigantic corporations having used this law as a way to throttle creators' income with little due process to protect them. However, this trend might start to reverse after a successful counter-DMCA claim fromGitHubfor hosting a popular YouTube downloader.
The big picture
Both of these platforms are dominated by young people, with many of the top earners on both platforms younger than 30. These spaces are also becoming increasingly politicized—forbetterand forworse. Because of all this, it's extremely likely that some of these impassioned creators will contribute to theongoing conversation around the DMCAin the near future.
Related:How to File a DMCA Takedown and Protect Your Reputation
2. Bitcoin and the Patriot Act
Bitcoin has made headlines this year thanks to yet another price surge: This time,it's up 15% in one week.
There are several possible explanations for the bump—including fears of the global reserve currencybecoming devalueddue toactions from the Federal Reserve—but one of the most significant ones is increased adoption from millionaires and big business.
Not long after news thatPayPal and Venmo将开始实施cryptocurrency到他们吗platforms, rival fintech companySquareannounced a $50 million investment into Bitcoin. With such big players entering the industry, excitement around crypto and blockchain technology is continuing to build—but can this momentum last?
What's the issue?
Before 2017, Bitcoin was mostly associated with black markets likeSilk Roadand massive cases of fraud—like when the platform handling roughly 70% of all Bitcoin exchanges in 2013was hackedand lost almost $400 million of its customers' money.
But after its meteoric rise in value to nearly $20,000 per coin—alongside other popular cryptocurrencies like Ethereum and Chainlink—it's become a lightning rod for entrepreneurs with dollar signs in their eyes. Unfortunately, there's still a legal minefield that needs to be navigated to fully adopt this technology, including Title III of the Patriot Act.
Originally put into law as part of a larger action to prevent domestic terrorism, this piece of legislation has been used toconvict cryptocurrency criminals(crypto-criminals?) of money laundering— as in the aforementioned Silk Road case. But it's alsoattracted significant controversysince 9/11 as an invasion of privacy, with a growing sentiment that the Patriot Act needs to be revised or abolished.
The big picture
One portion of the Patriot Actis set to expire at the end of 2020, seemingly due to indifference from the current administration. However, any future discussion around cryptocurrency will inevitably draw attention back to this legislation and Title III—whether it's in the context of stopping another crime, or preventing legitimate businesses from competing.
Related:Why Small Businesses Should Consider Bitcoin
3. Social Media and Section 230
也许最大的创业成功的故事狗万官方of the 21st century is Silicon Valley.
Starting with computers and telephones and later the programs that run on these machines, companies likeApple, Intel, Google, and Facebook have developed cutting-edge technology that now defines the way we live, work, and communicate with others.
That last point is of particular concern, since many of the most successful social media websites are currently in the White House's crosshairs precisely because of what communication they do and don't support on their platforms.
What's the issue?
As part of the 1996 Communications Decency Act,Section 230specifically covers "interactive computer services," which applies to social media networks like Facebook and Twitter. This line asserts that these companies are not legally considered publishers of content shared on their platforms.
While it may sound inconsequential, this small section of a larger law is essential to the existence of big players in Silicon Valley and many other tech companies. It's even been referred to by some as "The 26 Words That Created the Internet." And now that it'sunder heavy scrutinyby politicians on both sides of the spectrum, it's extremely likely to become changed in some form—if not removed completely.
The big picture
After numerouscongressional hearings with tech CEOslike Mark Zuckerberg and Jack Dorsey, the implications of Section 230 on current tech companies and their future are being enthusiastically discussed. However, this overshadows the potential affect that altering this legislation can have on smaller, younger businesses. After all, what chance does a newcomer have at making a successful social media company if the biggest social media services can't survive the climate?
Related:San Francisco Lawsuit and New York Law Highlight Global Risks for Airbnb
Get Involved
So what can you do about these issues? My advice is to figure out which one personally affects you, learn more about the wider context, and join the conversation.
If you want to make an impact in 2021 and beyond, the best way to start is to get a clear picture of what issues, conversations, and courtroom battles will most likely define the future. And if you live in a country like the United States, Canada, the UK, Australia, or many other countries, you can most effectively accomplish this by getting politically involved.
