Liability and the Internet of Things

What happens when an internet connected device fails?

What happens when an internet connected device fails?

In The Australian today I have a piece discussing the legal risk of the IoT.

Lawyers warn that manufacturers, distributors and installers all face the possibility of damages should their devices malfunction or not perform as advertised.

This risk is compounded by the data analysis with Michael Stojanovic of international law firm Bird & Bird citing the example of a gas monitoring device accurately detecting and reporting a surge but a company being liable because they didn’t warn their customer something was amiss.

Equally there’s a risk with misreported or lost data. This in itself is presents a problemĀ as many of the software vendors currently looking at supplying the IoT have a ‘best effort’ mentality where they don’t accept responsibility for service interruptions.

While that attitude may have stood up before courts over the last twenty years, it’s unlikely to get much sympathy from judges and juries when critical systems are affected.

Like everything else in life, the lawyers are coming for the IoT.

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Author: Paul Wallbank

Paul Wallbank is a speaker and writer charting how technology is changing society and business. Paul has four regular technology advice radio programs on ABC, a weekly column on the smartcompany.com.au website and has published seven books.

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