Free Software at Risk Under Lemon law
mpawlo writes: "Newsforge published a piece I wrote on a lemon law for software. That is - what would happen if shrinkwrap limitation of liability clauses would be banned? I think Microsoft and the GNU Project would both suffer."
I love this little quip:
"We all know that the open and distributed model for development described in Eric S. Raymond's book "The Cathedral and the Bazaar" is much better and creates more reliable products than any closed non-distributed development model. "
I'm wondering if the author can substantiate this claim with facts.
This is the primary problem with Open Source advocacy, it relies a lot upon blind faith.
The legislation would skyrocket production costs for Microsoft if the company were forced to release foolproof products.
Why would this happen? Car manufacturers used the same "skyrocket production costs" argument with the lemon law with cars. But it just doesn't mean that everything needs to be perfect. Instead it just ensures some basic quality control such as practiced in Japan.
As for free software, it would just mean that some of the legal entities that support a packaged product (i.e., Red Hat) would be held to the same standards. IANAL, but if the FSF says 'this isn't a complete product' they can't be held liable any more than a tire company could be for some idiot putting the wrong tire on their car.
...is that Microsoft spends a lot on marketing to tell you that their stuff will streamline your business, keep your toilet from clogging, and whiten your teeth while you sleep.
Meanwhile, their EULA practically says that you're better off playing Russian Roulette with five bullets and only one empty chamber, than to trust their software in a mission/enterprise-critical environment. We can't get access to their source code to check it for bugs ourselves, which would shift liability to us if we could do so, did, and then okayed it for use-- we just have to take them at their word, and hope that the server farm doesn't melt down and bankrupt our company.
Free software, on the other hand, is just 'out there'-- it's like finding a still-wrapped condom on the street. Sure, you can pick it up and use it, but if bad things happen, well, how is that anyone's fault but your own?
Liability-eliminating EULAs are an affront to any kind of truth-in-advertising regulations. A software company should definitely be able to be held financially liable for losses caused by failings in its products-- not to a degree that would instantly put them out of business, but a fair amount. Say, equal to their annual marketing/advertising budget?
Let's look at it with the car company analogy. Suppose Ford's commercials said that the airbags in their cars would save you and your family's lives? Okay, now suppose someone dear to you was killed in a head-on collision while driving a Ford. How would you feel if, when you tried to sue, Ford said, "But wait, your loved one agreed to the EULA by deploying the airbag... let me read you this paragraph from it that says, if the airbag does not work as we said it would, we aren't liable."
I don't even think that it will hurt Red Hat too badly. Normally (except in the case of injury or death), the vendor's liability for any product is limited to the purchase price. And Red Hat's business model is to make money off the consulting services, not particularly off the CD distributions. So they should be able to cover small claims on this front. And remember, even if a huge company installs it on 250 machines and sues, they probably only bought one copy, so the liability is still small.
Even better, the way lemon laws work gives the vendor an option: return the purchase price or fix the problem to a customer's satisfaction. If an Open Source vendor runs into a huge bug with hundreds or thousands of claims, they are also likely to have a small army of developers (which they don't have to pay) working on fixing it. And so, they can get the fix, and distribute the patch to settle the claims. Customers like that even more than getting their money back.
--The basis of all love is respect
I think publishing the source should allow the disclaimers to be in force. MS does publish the source to some customers, and GNU to everybody. With the source you can (in principle) verify the functionality and absence of backdoors, and you can (in real life) fix problems yourself instead of having to wait for a Service Pack or other official upgrade.
This is pretty much the key. All that is needed to get OSS off the hook is the line in the documentation "This product does exactly the source code says it does. All other documentation is purely opinion."
What would Lemmy do?
Remember what got the ball rolling with car manufacturer liability. Ford manufactured a car that roasted its occupants when hit from behind. Ford figured it would be cheaper to pay the victims than it would be to fix the car. When this surfaced, public outcry did the rest.
Most cases aren't as clear-cut. Continuing on the car industry example, can you hold a vendor liable if you're not wearing seatbelts, and suffer serious injury as a result? Probably not. Can you sue if you are injured in a parking accident by the airbag? Probably not. Now, why were you injured in the first place by said airbag? Because they are inflating with the power required to restrain a person not wearing seatbelts. Anything wrong with this picture? You bet. The consumer has a responsibility of his own, in this case: wearing the seat belt.
Liability is eventually determined by a judge and a jury, and in corner cases it's just a lottery, which is why car manufacturers err on the side of safety -- theirs, not the safety of the customers who are wearing seat belts.
The same thing is looming on the horizon when a software lemon law gets introduced. Vendors will still go to great lengths to skirt their responsibility, and even if that works to "improve" the product, chances are the consumer will be hurt in the end.
For a preview of things to come, look at Microsoft's security fix to Outlook. It is available, so like seat belts, common sense holds that if you don't apply it, you willfully accept the consequences. But unlike seat belts (which are at worst an inconvenience), applying this patch will cripple Outlook beyond being usable.
You can't win this one. Frankly, I'd settle for a law that demands truth in advertizing w.r.t software products.
Bert Driehuis -- All I asked was a friggin' rotatin' chair. Throw me a bone here, people.
Create laws that arm consumers with security information. Perhaps a grading scheme where software that doesn't connect to the internet is given a A rating. If it is a client then it gets a B rating. If it is a server it starts at C then for every three exploits within the last year the rating increments by one.
I think this sounds pretty nice, but it has problems. For instance, clients are not necessarily more secure than servers, a well-written anonymous ftp server could theoretically be infinitely more secure than a poorly-written web browser which downloads and executes code without express permission.
Also, most linux distributions would minimally start at a "C" rating under this scheme, while windows 98 would begin at "B" (without enabling "file/printer sharing"). Which do you consider to be more secure on the average? Do the ratings reflect that?
These problems are indicative of a greater flaw in this scheme, software doesn't have to rigidly conform to _any_ model, be it client/server, P2P, etc. Laws take a long time to be changed, software can be changed in weeks (witness Microsoft's court history.. pretty soon they might be stopped from producing Windows 95 ;) - if we draft laws or even form committees which define certain software paradigms as insecure, software will simply change paradigms to achieve a higher rating until the ratings-board is able to change criteria to match.
Alternatively, we could have panels of elected security-analysts pore-over every piece of software that is voluntarily-submitted for a rating (in source form), at a cost to the software producer (based on some criterion I don't know), and they could arbitrarily grant ratings based on their findings.
I don't know that this is the best solution, but it sounds more practical, it's similar to other analogous (movie ratings, supreme court, etc.) systems for ideal-compliance which are already in place and doing a reasonable (not perfect) job.
Thoughts?
First, warranties only are meaningful in the context of a commercial transaction. There's no reason to expect a warranty on a free good. So this is not a problem for free software.
Second, warranties aren't that expensive to manufacturers. Under 5% of the cost of a car is in the warranty. More to the point, in the gambling industry, where full financial responsibilty for errors and downtime is the norm, GTech, which runs lottery systems, pays out about 0.3% of revenue in penalties.
Compensatory damages and blame management are real issues. But this comes up in other areas, and the suppliers work it out between themselves, as in the Ford vs. Firestone tire failure issue. In computing, we should expect full warranties on the OS from manufacturers who preload an OS. Let Dell and Microsoft argue between themselves who's responsible.
Finally, manufacturers who don't offer a full warranty should have to put a giant "AS-IS" on the box, like those signs that appear on used cars.
I'm sorry, let me revise. The current versions of Windows. Windows 95 is no longer supported by Microsoft, and Windows 98 soon won't be (or is it already unsupported?). I can't speak for ME because I don't use it, but 2k has been rock solid for me. Uptimes of over 2 months, and damn near all reboots because I constantly tinker.
I'm a big Linux advocate. I run an OpenBSD box. The primary reason I have a windows machine at all is because the support still isn't there for gaming and video editing. Yes, there are decent video editing tools for Linux. They're not as good as the Windows equivalents, or they're multimillion dollar software used to edit movies like the Matrix.
I'm just not a zealot. I recognize where the problems lie, and I recognize when there's a use/market for a particular product. Windows has it's place, and it's current incarnations, it's quite stable. When Linux gets support from software makers, it will have a place on the desktop. Until then, it simply can't give the end users what they want.
The author makes a very poor argument. Consumers have a reasonable expectation of performance from (e.g.) MS Windows because they pay for it. You can't make the same argument for software that you get for free.
This bill cannot kill open source *development*. It may, however, make the selling of open source software much more difficult. If this bill passes, companies like RedHat would now be liable for bugs in Linux. Of course, RedHat can (and does) take a snapshot of Linux and make lots of modifications and tweaks before making a release, but there's no way they're going to catch all of the bugs. They're best bet would be to get heavily involved in the system of releases of open source software. This will be very tricky, though, as developers will not be happy to see a company have such control...
Jason