Software vendor liability is the issue of product liability for software bugs that cause harm, such as security bugs[1] or bugs causing medical errors.[2] For the most part, this liability does not exist in the United States.[3][4][5] The possibility of liability is excluded for most software in the European Union Product Liability Directive 1985 but is explicitly provided for in the update issued in 2024.[6]
References
^Kim, Byung Cho; Chen, Pei-Yu; Mukhopadhyay, Tridas (July 2011). "The Effect of Liability and Patch Release on Software Security: The Monopoly Case". Production and Operations Management. 20 (4): 603–617. doi:10.1111/j.1937-5956.2010.01189.x.