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ARTICLE · 24 APRIL 2023

Biden Administration Aims To Shift Liability For Cyberattacks To Software Developers

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In response to major cyber-related attacks caused by software security flaws, such as the SolarWinds breach, the Biden administration is gearing up to crack down on software providers...

United StatesTechnology
Kathleen A. McGee
Kathleen A. McGee
Ken Fishkin
Ken Fishkin
Mikayla R. Berliner
Mikayla R. Berliner

In response to major cyber-related attacks caused by software security flaws, such as the SolarWinds breach, the Biden administration is gearing up to crack down on software providers that distribute products with security flaws that make customers vulnerable to cyberattacks.

One of the administration's objectives, as stated in its March 2023 National Cybersecurity Strategy, is to develop legislation to (1) shift liability for cyber breaches to software companies that "fail to take reasonable precautions to secure their software" and (2) prevent software companies "with market power" from fully disclaiming liability by contract.1 The administration's stated goal is to "drive the market to produce safer products and services while preserving innovation and the ability of startups and other small- and medium-sized businesses to compete against market leaders."2

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