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67 Md. L. Rev. 425 (2007-2008)
Tort Liability for Vendors of Insecure Software: Has the Time Finally Come

handle is hein.journals/mllr67 and id is 435 raw text is: TORT LIABILITY FOR VENDORS OF INSECURE SOFTWARE: HAS THE TIME FINALLY COME? MICHAEL D. Scorr* I. INTRODUCTION .......................................... 426 A. W hat is Software? ................................... 430 B. What is Insecure Software? ......................... 432 C. Is Software a Good or a Service? .................... 434 D. The Application of Article 2 to Computer Softw are ............................................ 436 1. W arranty Disclaimers ........................... 437 2. Limitation of Liability and Remedies ........... 439 II. APPLYING NEGLIGENCE LAW TO INSECURE SOFTWARE ...... 441 A . D uty ................................................ 442 B. Standard of Care ................................... 444 C. Breach of Duty ..................................... 447 D . Causation ........................................... 448 E. D am ages ........................................... 449 F. Difficulties in Applying Negligence Law ............. 450 1. Intervening and Superseding Causes ............ 450 2. Economic Loss Rule ............................ 453 3. Contractual Preclusion .......................... 456 III. APPLYING PRODUCT LIABILITY LAW TO INSECURE SorrwARE ............................................... 457 A. Software as a Product . ........................... 461 B. Insecure Software as a Design Defect ............... 467 C. Insecure Software as a Manufacturing Defect ....... 468 D. Difficulties in Applying Product Liability Law ....... 470 1. Economic Loss Rule ............................ 470 2. Contractual Disclaimers and Limitations on L iability ........................................ 471 IV. APPLYING PROFESSIONAL MALPRACTICE LAW TO INSECURE SoFTw ARE ............................................... 471 Copyright © 2008 by Michael D. Scott. * The author is professor of law at Southwestern Law School in Los Angeles. He is author of seven legal treatises in the information technology law field, including SCOTT ON INFORMATION TECHNOLOGY LAW (3d ed. 2007) and ScoTT ON OUTSOURCING LAW & PRAc- TICE (2006). The author would like to thank the Southwestern Law School faculty for their useful comments on earlier versions of this Article and Dean Bryant Garth and the Board of Trustees for their financial support for the research on this Article. 425

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