Legal Liability for Software Defects

Published on 2002-09-24 by Mark VandeWettering

ZDNet UK is currently running a
story about the comments
made by Microsoft VP Steve Ballmer about Microsoft. This provoked the usual backlash of
anti-Microsoft sentiment on weblogs like
Slashdot
, but one interesting point was raised.

The ZDNet article says:

Asked by one lateral-thinking MVP whether Microsoft planned to offer applications software on Linux, Ballmer said no. “We do not anticipate offering software on Linux. Nobody pays for software on Linux.” Even StarOffice, sold by Sun, was originally a free product, he said. And IBM, arguably the No. 1 player in the Linux market, promotes Linux to big users, but does not actually sell Linux: “It’s weird! IBM says ‘Hey British Aerospace! Buy Linux…. From SuSE.”

The big issue there, he said, was a reluctance to accept legal liability for open-source software.

The reason that I find this interesting is of course that Microsoft doesn’t assume any legal liability for damages caused by the use of their software either. From the WinXP EULA:

  1. EXCLUSION OF INCIDENTAL, CONSEQUENTIAL
    AND CERTAIN OTHER DAMAGES. TO THE
    MAXIMUM EXTENT PERMITTED BY APPLICABLE
    LAW, IN NO EVENT SHALL MICROSOFT OR ITS
    SUPPLIERS BE LIABLE FOR ANY SPECIAL,
    INCIDENTAL, PUNITIVE, INDIRECT, OR
    CONSEQUENTIAL DAMAGES WHATSOEVER
    (INCLUDING, BUT NOT LIMITED TO, DAMAGES
    FOR LOSS OF PROFITS OR CONFIDENTIAL OR
    OTHER INFORMATION, FOR BUSINESS
    INTERRUPTION, FOR PERSONAL INJURY, FOR
    LOSS OF PRIVACY, FOR FAILURE TO MEET
    ANY DUTY INCLUDING OF GOOD FAITH OR OF
    REASONABLE CARE, FOR NEGLIGENCE, AND
    FOR ANY OTHER PECUNIARY OR OTHER LOSS
    WHATSOEVER) ARISING OUT OF OR IN ANY
    WAY RELATED TO THE USE OF OR INABILITY
    TO USE THE PRODUCT, THE PROVISION OF
    OR FAILURE TO PROVIDE SUPPORT OR OTHER
    SERVICES, INFORMATON, SOFTWARE, AND
    RELATED CONTENT THROUGH THE PRODUCT OR
    OTHERWISE ARISING OUT OF THE USE OF THE
    PRODUCT, OR OTHERWISE UNDER OR IN
    CONNECTION WITH ANY PROVISION OF THIS
    EULA, EVEN IN THE EVENT OF THE FAULT,
    TORT (INCLUDING NEGLIGENCE), STRICT
    LIABILITY, BREACH OF CONTRACT OR BREACH
    OF WARRANTY OF MICROSOFT OR ANY
    SUPPLIER, AND EVEN IF MICROSOFT OR ANY
    SUPPLIER HAS BEEN ADVISED OF THE
    POSSIBILITY OF SUCH DAMAGES.

I wonder what legal liability Ballmer is actually talking about, since this basically says that if WinXP blows up and destroys your house, even if their programmers put code that they knew could result
in the loss of your house, that they are not liable for damages. It is true that Microsoft is at least
a sue-able entity, but good luck in actually succeeding.

Microsoft offers precisely the same legal liability as any Linux distribution: none.