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5 High Tech. L.J. 1 (1989-1990)
Software Product Liability: Understanding and Minimizing the Risks

handle is hein.journals/berktech5 and id is 7 raw text is: ARTICLE SOFTWARE PRODUCT LIABILITY: UNDERSTANDING AND MINIMIZING THE RISKS BY LAWRENCE B. LEVY AND SUZANNE Y. BELL-t Table of Contents I. THE PROBLEM OF VENDOR LIABILITY ........................................ 1 II. THEORIES OF LIABILITY ................................................................... 2 A. Threshold Issue: Is Software a Good or a Service? ............... 2 B. Contract Theories of Liability ....................................................... 7 C. Tort Theories of Liability ............................................................. 8 III. M INIM IZING THE RISKS ................................................................ 15 A . Contractual Provisions ................................................................. 15 B. Development and Marketing Strategies ................................... 23 C. Relationship W ith Licensees ...................................................... 26 D. Product Liability Insurance ......................................................... 27 IV. CONCLUSION .................. ................... 27 I. THE PROBLEM OF VENDOR LIABILITY As computer technology evolves, more powerful computer systems and software are available to more individual users and businesses. As a result, software vendors are likely to face increasing exposure to lawsuits © 1990 Lawrence B. Levy and Suzanne Y. Bell t Partner, Wilson, Sonsini, Goodrich & Rosati, Palo Alto, CA. Indiana University, B.S. (with honors) 1980; Harvard Law School, J.D. (cum laude) 1983. tt Associate, Wilson, Sonsini, Goodrich & Rosati, Palo Alto, CA. Middlebury College, B.A. (cum laude) 1980; Columbia University, M.S. 1982; Stanford Law School, J.D. (with distinction) 1988. The authors gratefully acknowledge the contribution of Paul Rothstein, a student at Stanford Law School, for his assistance in the preparation of this article. 1. Raysman & Brown, Strict Product Liability for Software and Data, N.Y.L.J., Sept. 15, 1988 at 3, 3; Gemignani, Product Liability and Software,. 8 RUTGERS COMPUTER & TECH. L.J. 173, 173-75 (1981).

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