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[IP] Deworming the Internet -- addressing market failure in computer security





Begin forwarded message:

From: Douglas Barnes <salguod@xxxxxxxxxxxxxxx>
Date: November 20, 2004 10:48:55 AM EST
To: dave@xxxxxxxxxx
Subject: Deworming the Internet -- addressing market failure in computer security


Dave--

I thought IP folks might be interested in a paper I've written which is just now available on SSRN. In part it's a response to the periodic calls for
"liability" (notably from Bruce Schneier) as a mechanism for solving
computer problems. The upshot is that I think Bruce is right that there is a need for a regulatory response, but that extending, say, tort liability to
software would be a disaster.  In addition to my more complicated law &
economics argument for why this is, I point out in passing that ordinary
tort liability could crush open source software, which has the potential to
act as a positive force in addressing the underlying market failure.

Links and abstract below.  Comments welcome.

Cheers,

Douglas Barnes

===========

http://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID622364_code402123.pdf? abstra
ctid=622364&mirid=1 or http://papers.ssrn.com/abstract=622364

Abstract:
Both law enforcement and markets for software standards have failed to solve
the problem of software that is vulnerable to infection by
network-transmitted worms. Consequently, regulatory attention should turn to the publishers of worm-vulnerable software. Although ordinary tort liability
for software publishers may seem attractive, it would interact in
unpredictable ways with the winner-take-all nature of competition among
publishers of mass-market, internet-connected software. More tailored
solutions are called for, including mandatory "bug bounties" for those who find potential vulnerabilities in software, minimum quality standards for software, and, once the underlying market failure is remedied, liability for
end users who persist in using worm-vulnerable software.


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