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He has some commentary on this well: https://www.schneier.com/blog/archives/2008/07/software_liabil.html https://www.schneier.com/blog/archives/2008/07/software

He has some commentary on this well: https://www.schneier.com/blog/archives/2008/07/software_liabil.html https://www.schneier.com/blog/archives/2008/07/software_liab... In summary, there wouldn't be liability for open source developers because there is no business contract. But if you run a website with open source software, you of course would still be liable for anything that happens to your customers' data. So you would probably want to buy that same open source software from someone (e.g. Red Hat), who would also be liable.

smsm42 9y ago
Which means, hosting/supporting open source would quickly become not worth it for any major company representing a large target for opportunistic lawyers. When you make millions from a product, you can afford a team of lawyers setting up contacts just right and fighting liability trolls. When you make zero profit, you cut the losses. Such law would spell very quick end to any corporate support of free and open source software, for liability reasons. There's a reason why all such software is accompanied with "NO WARRANTY" texts, and enforcing liability will make the corporate world to run from it. Nobody wants to be sued because they use OpenSSL and there was a vulnerability there, and that's exactly what would happen with any commercial vendor using OpenSSL if liability laws would be introduced. It doesn't matter the company didn't write OpenSSL - as soon as they use it, they are on the hook. IBM was sued not because they made Linux, but because they used it and had tons of money. And I do not see any business model that could allow companies to charge enough to cover such liabilities. Maybe for established powerhouses like Linux or for corporate foundational projects like Chrome and Darwin, but not for any lesser projects and surely not for any starting up open source with unclear revenue potential. It won't kill all open source, but it would severely hurt the ecosystem and turn it into two worlds - pure hobbyist geekery which nobody with money would touch, and formally open-source projects with strict corporate governance that has no ecosystem beyond the founding corporation. One of the worst ideas I've heard lately, and I am genuinely baffled how a person as smart and experienced as Schneier could support it.
- marcoperaza 9y ago
  I'm not sure you're envisioning the same thing I am. You would only be liable for something that you sell or otherwise make money from. You would be free to publish software, open source or not, without incurring liability as long as you don't make money from it. Whoever then uses that software for a commercial product would be incurring the full liability, and would not be able to turn around and sue up the chain. The currently widespread practice of trusting sensitive user data to open source code without an audit (either internally or via a third-party, e.g. Red Hat) is horrifying and incredibly negligent.
  - smsm42 9y ago
    > You would only be liable for something that you sell or otherwise make money from If your business includes software in any meaningful function, you are making money from it. Any competent lawyer would be able to successfully argue that. Charging money for a license is not the only way, otherwise everybody would just switch to charging for "consultancy service", which coincidentally provides free software license, and avoid any liability. > You would be free to publish software, open source or not, without incurring liability as long as you don't make money from it. You as a private person would be. That's my point - that would be the only way to do open source, any corporate support of open source projects would imply full liability, which would be impossible for a product the company gets to revenue from. It would be much harder for a business to justify supporting an open source project when liability costs are added to the equation. > The currently widespread practice of trusting sensitive user data to open source code without an audit (either internally or via a third-party, e.g. Red Hat) is horrifying Audits cost money. Tons of money. And they don't guarantee anything - bugs in OpenSSL have not been discovered for years despite thousands of people using the code, poring over it and billions depending on it. There's no magic in "audit" that allows code to be bug-free after it - if there was such a magical procedure people would already be using it, but there's no indication anybody has invented "audit" procedure that allows to eliminate all bugs. Existing flawed procedures are already being used - every company that produces software that I ever heard about uses them - and they are not enough. So what would happen is drastically raising the costs (to the point where having a website would no longer be affordable to an average person) while not significantly improving security.
icelancer 9y ago
>>But if you run a website with open source software, you of course would still be liable for anything that happens to your customers' data. So you would probably want to buy that same open source software from someone (e.g. Red Hat), who would also be liable. As others have said, this idea is really bad. Red Hat will start charging obscene amounts to support the legal side of the license, especially if it is used in eCommerce platforms. What about the wife and husband who want to sell hand-knitted socks online, or small businesses who do less than $250k/year online? Will they be able to afford an alternative to the LAMP stack and fully shield themselves from legal liability and the horde of lawyers who will gladly step into any loophole? Like many, my servers were affected by Heartbleed. So if I ran OpenSSL and someone found out before I patched it (took me 24h to do so), I could be sued in that window if I hadn't bought the license to Red Hat - oh, and how about all the licenses to all the open source software that depends on it underneath, OpenSSL being one of about a hundred of those projects? Do we license GNU toolchain? What if there are buffer overflow exploits found in various tools?
- Xylakant 9y ago
  > What about the wife and husband who want to sell hand-knitted socks online, or small businesses who do less than $250k/year online? Will they be able to afford an alternative to the LAMP stack and fully shield themselves from legal liability and the horde of lawyers who will gladly step into any loophole? If mom and pop want to sell hand-knitted socks on the internet I usually recommend them to use a hosted shop solution such as shopify and its ilk. They want to sell socks, not become an expert in hosting a LAMP stack. This is how liability works for brick and mortar stores as well: They're liable if a customer electrocutes himself because some dork attached the wrong wire to the wrong metal part. That's why mom and pop stores in the brick and mortar part of the world usually don't do the electrical installation or any parts that's covered under a builder code. They hire people supposed to be experts in that field to do that work and in in turn, they get to discharge the liability to them. It's about time we treat software the same. If you want to host something, either own up to it or hire someone to do it.

smsm42 9y ago

Which means, hosting/supporting open source would quickly become not worth it for any major company representing a large target for opportunistic lawyers. When you make millions from a product, you can afford a team of lawyers setting up contacts just right and fighting liability trolls. When you make zero profit, you cut the losses. Such law would spell very quick end to any corporate support of free and open source software, for liability reasons. There's a reason why all such software is accompanied with "NO WARRANTY" texts, and enforcing liability will make the corporate world to run from it. Nobody wants to be sued because they use OpenSSL and there was a vulnerability there, and that's exactly what would happen with any commercial vendor using OpenSSL if liability laws would be introduced. It doesn't matter the company didn't write OpenSSL - as soon as they use it, they are on the hook. IBM was sued not because they made Linux, but because they used it and had tons of money. And I do not see any business model that could allow companies to charge enough to cover such liabilities. Maybe for established powerhouses like Linux or for corporate foundational projects like Chrome and Darwin, but not for any lesser projects and surely not for any starting up open source with unclear revenue potential. It won't kill all open source, but it would severely hurt the ecosystem and turn it into two worlds - pure hobbyist geekery which nobody with money would touch, and formally open-source projects with strict corporate governance that has no ecosystem beyond the founding corporation. One of the worst ideas I've heard lately, and I am genuinely baffled how a person as smart and experienced as Schneier could support it.

marcoperaza 9y ago
I'm not sure you're envisioning the same thing I am. You would only be liable for something that you sell or otherwise make money from. You would be free to publish software, open source or not, without incurring liability as long as you don't make money from it. Whoever then uses that software for a commercial product would be incurring the full liability, and would not be able to turn around and sue up the chain. The currently widespread practice of trusting sensitive user data to open source code without an audit (either internally or via a third-party, e.g. Red Hat) is horrifying and incredibly negligent.
- smsm42 9y ago
  > You would only be liable for something that you sell or otherwise make money from If your business includes software in any meaningful function, you are making money from it. Any competent lawyer would be able to successfully argue that. Charging money for a license is not the only way, otherwise everybody would just switch to charging for "consultancy service", which coincidentally provides free software license, and avoid any liability. > You would be free to publish software, open source or not, without incurring liability as long as you don't make money from it. You as a private person would be. That's my point - that would be the only way to do open source, any corporate support of open source projects would imply full liability, which would be impossible for a product the company gets to revenue from. It would be much harder for a business to justify supporting an open source project when liability costs are added to the equation. > The currently widespread practice of trusting sensitive user data to open source code without an audit (either internally or via a third-party, e.g. Red Hat) is horrifying Audits cost money. Tons of money. And they don't guarantee anything - bugs in OpenSSL have not been discovered for years despite thousands of people using the code, poring over it and billions depending on it. There's no magic in "audit" that allows code to be bug-free after it - if there was such a magical procedure people would already be using it, but there's no indication anybody has invented "audit" procedure that allows to eliminate all bugs. Existing flawed procedures are already being used - every company that produces software that I ever heard about uses them - and they are not enough. So what would happen is drastically raising the costs (to the point where having a website would no longer be affordable to an average person) while not significantly improving security.

icelancer 9y ago

>>But if you run a website with open source software, you of course would still be liable for anything that happens to your customers' data. So you would probably want to buy that same open source software from someone (e.g. Red Hat), who would also be liable. As others have said, this idea is really bad. Red Hat will start charging obscene amounts to support the legal side of the license, especially if it is used in eCommerce platforms. What about the wife and husband who want to sell hand-knitted socks online, or small businesses who do less than $250k/year online? Will they be able to afford an alternative to the LAMP stack and fully shield themselves from legal liability and the horde of lawyers who will gladly step into any loophole? Like many, my servers were affected by Heartbleed. So if I ran OpenSSL and someone found out before I patched it (took me 24h to do so), I could be sued in that window if I hadn't bought the license to Red Hat - oh, and how about all the licenses to all the open source software that depends on it underneath, OpenSSL being one of about a hundred of those projects? Do we license GNU toolchain? What if there are buffer overflow exploits found in various tools?

Xylakant 9y ago
> What about the wife and husband who want to sell hand-knitted socks online, or small businesses who do less than $250k/year online? Will they be able to afford an alternative to the LAMP stack and fully shield themselves from legal liability and the horde of lawyers who will gladly step into any loophole? If mom and pop want to sell hand-knitted socks on the internet I usually recommend them to use a hosted shop solution such as shopify and its ilk. They want to sell socks, not become an expert in hosting a LAMP stack. This is how liability works for brick and mortar stores as well: They're liable if a customer electrocutes himself because some dork attached the wrong wire to the wrong metal part. That's why mom and pop stores in the brick and mortar part of the world usually don't do the electrical installation or any parts that's covered under a builder code. They hire people supposed to be experts in that field to do that work and in in turn, they get to discharge the liability to them. It's about time we treat software the same. If you want to host something, either own up to it or hire someone to do it.