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Software vendor liability is the issue of product liability for software bugs that cause harm, such as security bugs [1] or bugs causing medical errors. [2] For the most part, this liability does not exist in the United States.
Many assert that the purchaser is an adult and takes responsibility for minors' use of the product, to relieve the vendor of the issue of contracting with a minor and liability from minors' use of the product.
Diagram of software under various licenses according to the FSF and their The Free Software Definition: on the left side "free software", on the right side "proprietary software". On both sides, and therefore mostly orthogonal, "free download" . A software license is a legal instrument governing the use or redistribution of software.
The software vendor is usually not legally liable for the cost if a vulnerability is used in an attack, which creates an incentive to make cheaper but less secure software. [71] Some companies are covered by laws, such as PCI , HIPAA , and Sarbanes-Oxley , that place legal requirements on vulnerability management.
Product liability is the area of law in which manufacturers, distributors, suppliers, retailers, ... now including components of products as well as software. ...
In the event of a third-party breach, multinational corporations such as Delta potentially face breach notification requirements in multiple states.
Software asset management is a comprehensive strategy that has to be addressed from top to bottom in an organization to be effective, to minimize risk. A software compliance audit is an important sub-set of software asset management and is covered in the above referenced standards. At its simplest it involves the following:
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