Open AccessProducts Liability and the Internet of (Insecure) Things: Should Manufacturers Be Liable for Damage Caused by Hacked Devices?
Author(s) -
Alan Butler
Publication year - 2017
Publication title -
university of michigan journal of law reform
Language(s) - English
Resource type - Journals
eISSN - 2688-4933
pISSN - 0363-602X
DOI - 10.36646/mjlr.50.4.products
Subject(s) - liability , damages , causation , tort , doctrine , business , strict liability , law and economics , computer security , tort reform , internet privacy , risk analysis (engineering) , law , economics , computer science , political science , finance
While the application of products liability to insecure software is a frequently-discussed concept in academic literature, many commentators have been skeptical of the viability of such claims for several reasons. First, the economic loss doctrine bars recovery for productivity loss, business disruption, and other common damages caused by software defects. Second, the application of design defects principles to software is difficult given the complexity of the devices and recent tort reform trends that have limited liability. Third, the intervening cause of damage from insecure software is typically a criminal or tortious act by a third party, so principles of causation might limit liability for manufacturers.