Software Companies should not be held liable for

Software Companies should not be held liable for damages due to Buggy Software Design Team Against: Brandon Shapiro, Monica Chaplin, Kristie Lee, Stephanie Mc. Ilroy, and Amy Knight

End User License Agreement THIS SOFTWARE IS PROVIDED BY THE WU-FTPD DEVELOPMENT GROUP, THE COPYRIGHT HOLDERS, AND CONTRIBUTORS, "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE WU-FTPD DEVELOPMENT GROUP, THE COPYRIGHT HOLDERS, OR CONTRIBUTORS, BE LIABLE FOR ANY DIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

End User License Agreements Software companies will not be willing to release software unless they are legally protected with End User License Agreements. Increased risk leads to less new software development. If the consumer doesn’t want to assume the risk, the consumer doesn’t have to purchase the software. Consumer agreeing to EULA!!!

Viruses, Worms, and Bugs “Cybercrime” = Hackers Who is at fault? Hackers who release bugs and viruses are committing a criminal act. No malicious intent or negligence, and steps are taken to prevent buggy software: Consumer problems are not the responsibility of software manufacturers i. e. The Stolen Car analogy: BMW vs. car thief Microsoft vs. Hacker Jeffrey Parson, 18, heads home Friday after his arrest for releasing a variation of the Blaster worm, which infiltrated at least 7000 and was a significant part of the $2. 5 billion in damage to N. American companies in August 2003.

Kristie: Intangible vs. Tangible Property Damage Tangible property is defined as “having or possessing physical form, capable of being touched and seen. ” Software, data, and computer systems are considered as “intangible” which is not covered in insurance policies. Past cases have ruled in favor of software companies due to lack of hard evidence of damage and because damage did not occur to tangible property. This is shown and explained in the civil action case of AOL v. St. Paul Mercury Insurance Co. (June 20, 2002)

The user chooses to buy the software The software company takes many necessary precautions to release safe software Software companies cannot control how their software is used after the consumer buys it. By being connected to other networks, the customer chooses to open themselves up to viruses and bugs. VIRTUALLY ALL VIRUSES AND MANY WORMS CANNOT SPREAD UNLESS YOU OPEN OR RUN AN INFECTED PROGRAM!!! Consumer Choice

Costs and Liability Price of software will increase with liability Increased bug testing Slower product release The result: Higher prices for software

Costs and Liability Supply and demand Stifle technological growth and innovation Tradeoff: Affordable software with a quick turnover OR More expensive software and longer waiting periods