The New EU Product Liability Directive: Software as a Product
The EU is revising the Product Liability Directive to classify software as a product, expanding liability to more parties and including immaterial damage, with a 24-month implementation period for member states.
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The European Union is revising the Product Liability Directive (Directive 85/374/EEC) to adapt to the digital single market, with significant implications for software. The new directive will classify software as a product, expanding the definition to include digital items and raw materials, while excluding open-source software. This change addresses the growing digitalization and clarifies that software can be deemed defective if it fails to meet safety expectations or legal requirements. Additionally, the definition of damage has been broadened to include immaterial damage and data loss, removing previous compensation limits. The directive also extends liability to a wider range of parties, including distributors and online marketplace operators, while allowing them to identify upstream suppliers to mitigate liability. Companies will need to prepare for these changes, as they will be liable for damages caused by defective products regardless of fault. The directive must be transposed into national law within 24 months of its adoption, likely by Q3 2026, providing a transitional period for businesses to comply.
- The Product Liability Directive will now include software as a product.
- Companies will be liable for damages from defective products, regardless of fault.
- The definition of damage now includes immaterial damage and data loss.
- Liability extends to a broader range of parties, including distributors and online marketplaces.
- Member States have 24 months to implement the new directive into national law.
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2 comments> The European Union has updated its product liability law to cover software and associated risks, like security flaws and planned obsolescence.
[0] https://news.risky.biz/risky-biz-news-the-eu-will-make-vendo...
This also links "The new EU Directive on Liability for Defective Products"
[pdf] https://data.consilium.europa.eu/doc/document/PE-7-2024-INIT...
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