Axios
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McConnell no longer rejecting bipartisan health care talks

Timothy D. Easley / AP

Senate Majority Leader Mitch McConnell has made it clear he doesn't want to negotiate with Democrats on health care — but he's no longer dismissing the option. Here's what he said today at a Rotary Club lunch in Kentucky when asked whether he might need bipartisan cooperation to pass a health care bill, per AP:

"If my side is unable to agree on an adequate replacement, then some kind of action with regard to the private health insurance market must occur ... We've got the insurance markets imploding all over the country, including in this state."

Between the lines: Just two weeks ago, McConnell told reporters that he'd rather not deal with Senate Minority Leader Chuck Schumer because Republicans wouldn't be able to achieve any of their health care priorities, including rewrites of Medicaid and insurance rules. But he's not blind to the spectacle of Republicans running away from the health care bill — and his comments suggest he knows he may need a backup plan.

Featured

Geothermal energy startup spins off of Alphabet's research arm

A drill for a geothermal energy project in Oregon (Don Ryan / AP)

Google parent Alphabet's research and development division spun off a project Thursday that aims to make geothermal energy an easier lift for consumers.

The product: Geothermal systems require putting pipes in the ground to take advantage of the different temperature above and below ground to heat or cool a building. The company, called Dandelion, says it has developed a "a fast, slender drill" that "could drill just one or two deep holes just a few inches wide, and compared to typical installation rigs, it produced less waste and took up much less space as it operated."

Installing the system will cost $20,000, according to the company, which is setting up financing for customers. It'll be available first to customers in parts of New York state.

Nitty gritty: While this project began life as part of X, a "moonshot" incubator for Alphabet, Dandelion is an independent company with a seed funding round led by Collaborative Fund. X spokeswoman Alexa Dennett said that "X seeded Dandelion by starting it at X" but declined to say if Alphabet has a stake in the geothermal company.

"X has always supported a variety of graduation paths for its projects, including setting up as a VC-funded startup like Flux.io did in 2012," she said, when asked why the company wasn't kept under Alphabet, as in the case of self-driving outfit Waymo. "The Dandelion team's business and technology needs are very different than most teams across Alphabet, so from their perspective the benefits of being an independent company were greater than the benefits of staying."


Featured

Outgoing ethics chief: "appearance" Trump is profiting from presidency

AP

Walter Shaub, who submitted his resignation Thursday as director of the Office of Government Ethics, was asked by CBS News whether he believes the Trump family is using the presidency to enrich themselves. His answer:

"I can't know what their intention is. I know that the effect is there's an appearance that the businesses are profiting from his occupying the presidency, and appearance matters as much as reality. So even aside from whether or not that's actually happening we need to send a message to the world that the United States is going to have the gold standard for an ethics program in government, which is what we've always had."

Why it matters: Potential conflicts of interest surrounding Trump caused a major stir shortly after he took office, but have been on the backburner for a while. It's far from clear that Shaub's resignation will do much to revive the issue — Trump for one has long contended that most Americans don't care.

Featured

America still prescribes three times as many opioids as Europe

Jacquelyn Martin / AP

The CDC says American doctors have curbed their opioid prescription rate by 18% from 2010 to 2015, but are still prescribing three times as many opioids as their European counterparts, per NPR.

"We are still massively overprescribing," Andrew Kolodny, an addiction specialist at Brandeis University, told NPR. And the average length of prescriptions has risen from 13 to 18 days between 2010 and 2015. Longer periods of use increase chances of addiction.

Why it matters: Prescription opioids kill tens of thousands each year from overdoses, and they often lead to dependence on more deadly opioids such as heroin and fentanyl. Still, U.S. doctors hand out over 650,000 opioid prescriptions daily.
Featured

Qualcomm asks ITC to ban import of Intel-powered iPhones

Paul Sakuma / AP

Qualcomm is asking the U.S. International Trade Commission to ban imports into the U.S. of Apple iPhones that use Intel modem chips. In papers being filed Thursday, Qualcomm charges that the iPhone infringes on six Qualcomm patents covering a range of things from manufacturing techniques to methods of reducing battery use.

It's the latest escalation in the high-stakes legal battle between the two companies. Both companies have sued one another. Qualcomm has also sued Apple's iPhone contract manufacturers saying the companies are improperly withholding royalty payments at Apple's behest.

Why it matters: Despite their legal animus, both companies still need one another. Apple relies on Qualcomm for modem chips that work on Sprint and Verizon's networks, while Apple remains one of Qualcomm's main sources of revenue. It's already started to have an impact on Qualcomm's earnings.

"Qualcomm's inventions are at the heart of every iPhone and extend well beyond modem technologies or cellular standards," general counsel Don Rosenberg said in a statement. "The patents we are asserting represent six important technologies, out of a portfolio of thousands, and each is vital to iPhone functions."

Why these six patents?: Rosenberg told Axios that the patents are all recent (from the last four years) and none are of the so-called "standards-essential" variety, under which Qualcomm has to license to all companies at fair, reasonable and non-discriminatory terms. That's an effort to rebut Apple's claims that Qualcomm is seeking to reap unfair gains from old technology and to seek excessive royalties on standards-essential patents.


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Not all iPhones in crosshairs: Qualcomm is only seeking to ban iPhones that use other companies' modem chips even though Rosenberg says the company believes all iPhones – even those using Qualcomm modem chips – require a patent license since its intellectual property goes well beyond the modem. Limiting the exclusion order request, though, helps serve the public interest by keeping the iPhone available and also fulfills certain requirements of Qualcomm's chip contract with Apple, Rosenberg said.


Featured

GOP senators criticize health bill in town halls

John Hanna / AP

Rank-and-file Republicans are continuing to distance themselves from their party's unpopular health-care bill as the July 4 recess nears its end.

  • Sen. John Hoeven told constituents he ""doesn't support the bill as it stands," but believes the Senate will get to something better, according to the Bismarck Tribune.
  • Sen. Jerry Moran, facing a crowd with a lot of health-care questions, also reiterated his opposition to the most recent Senate bill, the Topeka Capital-Journal reported. Moran said he wants a more bipartisan process and to preserve protections for people with pre-existing conditions.
Reality check: Once Majority Leader Mitch McConnell decided not to hold a vote on the most recent version of this bill, almost every Republican had an incentive to say they would have opposed it.
But, as easy as it is to oppose the bill "as it stands," the next iteration isn't going to be all that different — and that will make Republicans' political choices more difficult. The more vocally they disavow version 1.0 of the Senate health care bill, the harder it'll be to make the case that version 1.1 is great.
Featured

Protests in Hamburg

Michael Probst / AP

Police in Hamburg, Germany have used water cannons to disperse protesters after being attacked with stones and bottles, per AP. Thousands of demonstrators have gathered in Hamburg for the G20 summit, most of them peaceful, but police say a group of masked anti-capitalist protesters vandalized a car and threw objects.

Featured

Venture capital's problem with covering up sexual harassment

Beneath the last few month's headlines about sexual harassment in venture capital, another theme has emerged: The cover-ups.

Why it matters: Although more women are finding the courage to come forward publicly with their stories, much of this can be undermined by company efforts to cover up the misconduct, especially via legal means like non-disclosure and non-disparagement agreements. When firms work to protect the transgressors' professional image and opportunities, they're saying that the men's careers are more important than the women's safety.

The cover-ups:

  • Binary Capital, the VC firm co-founded by Justin Caldbeck, long denied rumors about his misconduct to everyone from the press to business partners. Co-founder Jonathan Teo initially denied knowing anything about the stories floating around about his partner. Moreover, a former employee has filed a lawsuit alleging that she was pressured and threatened to not discuss her experience at the firm after she left.
  • Lightspeed Venture Partners, where Caldbeck was previously a partner, had a female entrepreneur sign a non-disparagement agreement about his conduct toward her. Lighspeed also kept quiet about Caldbeck's actions when he left to start his own firm, actually serving as a reference for prospective investors.
  • 500 Startups, whose co-founder Dave McClure recently resigned after allegations against him surfaced in the NY Times, didn't tell employees of the changes in management following an internal investigation, according to (now former) partner Elizabeth Yin. It also didn't disclose the investigation to employees, she says.

Proposed solutions: Groups of entrepreneurs and investors, plus one major limited partner trade group, have started to draft policies and codes of conduct that would mandate the disclosure of such allegations. Many have also called for investment firms and companies to end the practice of non-disclosure agreements that commonly prevent women from speaking up about misconduct.

Featured

Uber tipping lands in more than 100 new cities

Jeff Chiu / AP

Uber's in-app tipping feature is rolling out to 121 cities in the U.S. and Canada, including New York and San Francisco, the company said on Thursday. Uber first tested the feature in three cities.

Reluctant change: Uber long resisted adding an in-app tipping feature, even though it's been available via Lyft. The change in attitude comes as the company looks to improve its image and relationship with drivers, who consistently say that they would like the ability for riders to tip though the app.

Uber says the feature will be made available to all U.S. markets by the end of July.

Featured

Google's new play for mobile ads

Google's introducing three new ad formats for AdSense, its ad placement service that serves millions of advertisers globally. The new formats are "native" ad formats, meaning they are highly customizable to match the look and feel of a publishers' content, and are very mobile-friendly.

From a user perspective, native formats can make for a less intrusive experience, although can sometimes be confused with content if not properly labeled. From a publisher perspective, the updates will make it easier to create ads for different screen sizes.

Why it matters: Google has been aggressively pushing efforts to improve the user ad experience on its platform, including these new ad units, but some search engine optimization experts argue the changes will only further bury publishers' organic content on its platform.

"Many of Google's algorithm changes this year have negatively impacted the traffic to websites with quality issues," says Len Raleigh, CEO at SEO and content marketing strategy firm Telapost. "Used excessively, I believe the new AdSense ads could potentially cause quality issues on publisher's pages, leading to a loss of traffic."

More about the new formats below.

  • In-feed: Ads that fit neatly inside publishers' feeds. (Feeds are lists of articles or products on a websites.) These ads can be customized to match the look and feel of your content. (Available to all publishers)
  • In-article: Native ads that run between the paragraphs of a publishers' page. These full-width ads are meant to help publishers monetize smaller screen spaces, making them ideal for mobile. (Available to all publishers)
  • Matched content: A content recommendation tool that helps publishers promote content to visitors, to create additional revenue opportunities. (Available to some publishers)