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Product Liability and Digital Products

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EU Internet Law

Abstract

This paper examines the topical question as to whether non-tangible products such as apps and other software not supplied on a tangible medium (should) qualify as products under EU Product Liability Directive. It addresses the relevant questions posed by the European Commission, which has recently announced an evaluation of the said Directive with the aim of its adaptation to the digital age. The article draws a crucial distinction between information (whether in tangible or non-tangible form) that should not lead to liability and tangible or non-tangible products which are not confined to mere information provision and whose defects may cause material harm. The latter must be considered as falling within the Product Liability Directive, which is eligible to reasonable interpretation achieving this aim.

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Notes

  1. 1.

    Murray (2016).

  2. 2.

    Castells (2010).

  3. 3.

    For example, computer can give instructions to another computer through a software that collects instruction from human users.

  4. 4.

    Commission Staff Working Document A Digital Single Market Strategy for Europe—Analysis and Evidence Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions A Digital Single Market Strategy for Europe, COM (2015) 192 final.

  5. 5.

    Council Directive 85/374/EEC of 25 July 1985 on the Approximation of the Laws, Regulations and Administrative Provisions of the Member States Concerning Liability for Defective Products [1985] OJ L210/29.

  6. 6.

    European Commission (2016) Evaluation of the Directive 85/374/EEC concerning liability for defective products. http://ec.europa.eu/smart-regulation/roadmaps/docs/2016_grow_027_evaluation_defective_products_en.pdf. Accessed 24 Oct 2016.

  7. 7.

    Howells and Willett (2016).

  8. 8.

    [1996] EWCA Civ 1296, 4 All ER 481.

  9. 9.

    [1983] 2 NSWLR 48.

  10. 10.

    925 F.2d 670 (3rd Cir. 1991).

  11. 11.

    SI 1993/3053.

  12. 12.

    Software Incubator Ltd v Computer Associates [2016] EWHC 1587 QB 68.

  13. 13.

    For example, the Supreme Court in the PST Energy 7 Shipping LLC and another v O W Bunker Malta Limited and another [2016] UKSC 23, which held that the sale of bunkers was not on terms used a sale of goods contract, but rather a sui generis contract.

  14. 14.

    [2010] NSWC 267.

  15. 15.

    Koch (2016).

  16. 16.

    Zammit and others (1987), Weber (2012), Prince (1980).

  17. 17.

    Green and Saidov (2007).

  18. 18.

    Guibault and others (2011).

  19. 19.

    Section 2(1) states “‘Goods’:

    1. (a)

      means personal property of every kind (whether tangible or intangible), other than money and choses in action; and

    2. (b)

      includes—(vi) to avoid doubt, water and computer software.”

  20. 20.

    Bradgate (2010).

  21. 21.

    Competition and Consumer Act 2010. sch 2, section 2, following Gammasonics Institute for Medical Research Pty Ltd v Comrad Medical Systems Pty Ltd [2010] NSWSC 267, there is a difference in the treatment between consumer and commercial goods in Australia.

  22. 22.

    Consumer Rights Act 2015, Chapter 3.

  23. 23.

    Proposal for a directive of the European Parliament and of the Council on certain aspects concerning contracts for the supply of digital content COM (2015) 634 final.

  24. 24.

    Schulze (2016), Howells and Willett (2016).

  25. 25.

    Triaille (1993).

  26. 26.

    Borghetti (2004) citing TGI Paris (1986) 28 May 1986 RTD civ. 552, note Huet J.

  27. 27.

    Holle and Møgelvang-Hansen (2016).

  28. 28.

    Alheit (2001).

  29. 29.

    Ibid 200; Whittaker (1989).

  30. 30.

    Magnus (2016) Supra n 15, p 245.

  31. 31.

    Winter v G.P. Putnam’s Sons, 938 F.2d 1033, 1036 (9th Cir. 1991); Gorran v Atkins Nutritionals, Inc., 464 F.Supp.2d 315, 325 (S.D.N.Y. 2006).; Way v Boy Scouts of Am., 856 S.W.2d 230, 239 (Tex. App. 1993).

  32. 32.

    See, for example, Prince J Supra n16, pp 849, 852–855; Scott (1987), Stapleton (1989).

  33. 33.

    Gemignani (1980–1981).

  34. 34.

    Whittaker S Supra n 29; Supra n 28.

  35. 35.

    The Law of 25 February 1991 concerning Liability for Defective Products, Art. 2.

  36. 36.

    Answer of the Commission on 15 November 1988 to written question No. 706/88 [1989] OJ C144/42.

  37. 37.

    Supra n 26.

  38. 38.

    Supra n 30.

  39. 39.

    Supra n 26.

  40. 40.

    Ibid.

  41. 41.

    Supra n 5, Recital 2.

  42. 42.

    A v National Blood Authority [2001] EWHC QB 446, 3 All ER 289 (Burton J).

  43. 43.

    Supra n 6, Art. 6.

  44. 44.

    In a German case, a manufacturer of a motorcycle was found liable in negligence for failing to supervise the accessories market. Parts made by another producer, but aimed at his products, rendered them dangerous: see VI ZR 65/86, NJW 1987, 1009.

  45. 45.

    Supra n 5, Art. 8.

  46. 46.

    Directive 2001/95/EC of the European Parliament and of the Council of 3 December 2001 on general product safety (Text with EEA relevance), OJ L11/4.

  47. 47.

    ibid, Art. 2(a).

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Acknowledgment

Hong Kong (Professor Howells’ work was supported by a grant from City University of Hong Kong Project No.9380074).

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Howells, G., Twigg-Flesner, C., Willett, C. (2017). Product Liability and Digital Products. In: Synodinou, TE., Jougleux, P., Markou, C., Prastitou, T. (eds) EU Internet Law. Springer, Cham. https://doi.org/10.1007/978-3-319-64955-9_8

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