Should Software Manufacturers be liable for Defective Software?

1
Should Software Manufacturers be liable for
Defective Software?

• Carmen Jones
• Section 613

2
How consumers are being disadvantaged

• Consumers have no legal alternative over
  defective software they buy off the shelf because
  of restrictions on liabilities written in product
  licensing agreements
• Custom-built software is also protected against
  liability through various errors-and-omissions
  clauses.

3
Example of License Agreement
Apple Computer, Inc. WebObjects 5.2 Software
License Agreement PLEASE READ THIS SOFTWARE
LICENSE AGREEMENT ("LICENSE") BEFORE USING THE
SOFTWARE. BY USING THE SOFTWARE, YOU ARE AGREEING
TO BE BOUND BY THE TERMS OF THIS LICENSE. YOU
EXPRESSLY ACKNOWLEDGE AND AGREE THAT USE OF THE
APPLE SOFTWARE IS AT YOUR SOLE RISK AND THAT THE
ENTIRE RISK AS TO SATISFACTORY QUALITY,
PERFORMANCE, ACCURACY AND EFFORT IS WITH YOU. TO
THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, THE
APPLE SOFTWARE IS PROVIDED "AS IS", WITH ALL
FAULTS APPLE DOES NOT WARRANT AGAINST
INTERFERENCE WITH YOUR ENJOYMENT OF THE APPLE
SOFTWARE, THAT THE FUNCTIONS CONTAINED IN THE
APPLE SOFTWARE WILL MEET YOUR REQUIREMENTS, THAT
THE OPERATION OF THE APPLE SOFTWARE WILL BE
UNINTERRUPTED OR ERROR-FREE, OR THAT DEFECTS IN
THE APPLE SOFTWARE WILL BE CORRECTED. NO ORAL OR
WRITTEN INFORMATION OR ADVICE GIVEN BY APPLE OR
AN APPLE AUTHORIZED REPRESENTATIVE SHALL CREATE A
WARRANTY. SHOULD THE APPLE SOFTWARE PROVE
DEFECTIVE, YOU ASSUME THE ENTIRE COST OF ALL
NECESSARY SERVICING, REPAIR OR CORRECTION.
4
Reason why quality of software is low

• One key reason why software quality ranks so low
  is that there is little chance the software
  industry will be held accountable for damages.

With program code embedded in cars, planes,
trains and hospital equipment, software
developers can hide behind third-party status.
They don't make the products that use the
software, so if failure or injury occurs, the
software maker hides in the background.
5
Ways to reduce software defects

• having testers who can figure out bizarre cases
  in which the code might fail
• ability to handle things beyond the software's
  operating scope and flag the error before bad
  things happen
• for customers to sue vendors or take other legal
  action

If vendor liability is used to solve security
flaws it would affect employees, shareholders and
customers because it raise costs and not
encourage innovation
6
How could legislatures impose liability on the
computer industry

• Forcing software manufacturers to be subject to
  the same product liability laws that affect other
  industries
• If they produce defective products they will be
  liable for damages
• Software vendors would think twice about product
  features and complexity because liability would
  force them to consider whether such additions are
  necessary

7
Why they should not be liable?

• Will jeopardize innovation
• Vendors are working to create better and more
  secure products
• Allowing these advancements is good for consumers
• Will affect U.S. competitive advantage
• Would hinder product development and which would
  result in lost of technical jobs and productivity
• Will jeopardize the U.S. industrys leading
  position in global markets
• Benefits to consumers
• Software cannot be foolproof
• products of engineering are not perfect
• As technology benefits increase users find ways
  to misuse or modify it
• Punishing the wrong people
• There should be more prosecution of computer
  crimes, stiffer penalties for hackers and more
  cyber crime training for law enforcement instead
  of focusing on software manufacturers

8
Recent Cases of Software Malfunctions

• Dell battery recall in August
• Between 1985 and 1987 six patients were seriously
  injured or killed as a result of receiving
  excessive radiation doses attributable to the
  Therac-25 and defective software

9
Recent Software Glitch of Segway scooters

• cbs13.com Segway
• Segway Recall
• According to the manufacturer, the "speed
  limiter" in a Segway can cause it to tip backward
  suddenly, throwing off the rider.

10
What software manufacturers are doing now to
prevent defects

• According to the National Institute of Standards
  and Technology  , developers spend about zero
  percent of their development costs on identifying
  and correcting defects. Reports like these reveal
  a callous, user-be-damned attitude by the
  software industry. But when inept coding runs
  mission-critical systems in transportation and
  medical procedures, that attitude can be deadly.
• Adding insult to injury is a conclusion by the
  Institute of Electrical and Electronics Engineers
  that peer reviews of software will catch 60
  percent of all coding defects. But few, if any,
  companies subject their programming to peer
  review.

11
Stats
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Something to think about

• In his book, author T. Capers Jones reported that
  no method of removing software defects or errors
  is 100 percent effective. Formal design and code
  inspections average about 65 percent in
  defect-removal efficiency. Most forms of testing
  are less than 30 percent efficient, Jones wrote.

13
Factors that can affect software

• temperature changes
• power fluctuations or failure wear and tear.
• incompatibility with hardware
• Hardware can also be temperamental
• There are a number of other factors which could
  affect software to be defective

14
Works Cited

• Works Cited
• Schmidt, Howard A.. Perspective  Give
  developers secure-coding ammo. News.com. 3 Nov.
  2005. 22 Oct 2006lthttp//news.com.com/Give
  developerssecure. /-codingammo/2010-1002_3-5929
  364.htmlgt
• Miller, Harris, Schneier, Bruce Face-off Should
  vendors be liable for their software's security
  flaws? Network World.  22 Apr. 2002. 22 Oct.
  2006 lthttp//www.findarti/ cles.com/p/articles/m
  i_qa3649/is _200204/ai_n9080983gt
• Germain, Jack M. Can Software Kill You?.
  TechNewsWorld.com. 13 Mar. 2004. 22 Oct. 2006. lt
  http//www.technewsworld.com/story/33398.htmlgt
• Jamieson, Maurice. Liability for defective
  software The Journal. 2001 May. 23 Oct. 2005
  lthttp//www.journalonline.co.uk/article/1000702.as
  pxgt
• Segway recalls 23,500 scooters. September 14
  2006. 23 Oct. 2006. CNNMoney.com.
  lthttp//money.cnn.com/2006/09/14/news/companies
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