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Presentation at the Intelligent Transportation Society World Congress, September 2014. Thrust of presentation is that optimal product generates optimal liability framework. Discusses how those interested in developing connected/autonomous vehicles need to "trade" both liability and product development expertise in a way that will deliver both a compelling automated vehicle product and a robust liability regime for that product.
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● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ●
Autonomous/Connected Vehicles:Getting to Optimal Liability
Tom Bamonte (@TomBamonte)General Counsel
ITS 21st World Congress
Sept. 9, 20141 – 2:30 pm Cobo, 140 C
North Texas Tollway Authority
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 2
Identifying optimal liability
Recognizing key AV participants
Aligning their development and liability strategies
Overview
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 3
Optimal Liability
Risk
Tol
eran
ce
Consumer Benefit
Acceptability
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 4
Legal System Can Handle Transportation Leaps
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 5
Legal System Handles Transportation Automation
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ●
Can the AV avoid the Segway Fate?
6
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 7
The Six AV Drivers
OEMs
RIDEPROVIDERS
REGULATORS
LEAPFROGGERS
HIGHWAYAUTHORITIES
CONNECTORS
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 8
OEMs
Development: Incremental steps; AV maybe; keep driver in loop
Liability: Retain existing framework
Driver Driver
OEM
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 9
Regulators
Development: Embracing incrementalist approach with some AV hedging
Liability: 30,000 highway deaths, hundreds of billions of dollars lost annually, inefficient operations
Too Little Too Much Just Right
• Rolling Chernobyls
• Non-compelling AV product
• Stifle innovation
• Lives, $$$, economic edge lost
• Compelling product
• Safety and $$$ gains
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ●
Connectors
10
Connector
Development: Push content to/from vehicles and occupants
Liability: Pass through liability from victims of distracted drivers; privacy and security breaches
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 11
Leapfroggers
Development: Humans are problem – AV fixes
Liability: Big potential liability exposure – uncertainty
Victim
OEM
Hardware/Software provider
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ●
Ride Providers
12
Development: Penetrate markets; overcome local monopolies; wean people from car ownership
Liability: Accidents by drivers
Provider Victim
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 13
Highway Authorities
13
Development: Bystanders for most part
Liability: Largely protected by sovereign immunity and favorable state laws
Highway Authority
OEM
Driver Driver
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 14
OEMs Ride ProvidersRide Providers Highway Authorities
Aligning Liability with Interests
Highway Authorities Leapfroggers Leapfroggers RegulatorsRegulators ConnectorsConnectors OEMS
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 15
Suboptimal Alignment
15
RIDE PROVIDERS
HIGHWAYAUTHORITIES
REGULATORS CONNECTORS
LEAPFROGGERSOEMs
Incremental/Connected
Leapfrog/Autonomous
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 1616
CONNECTED AUTOMATED
VEHICLE
OEMs
HIGHWAYAUTHORITIES
REGULATORS
RIDE PROVIDERS
CONNECTORS
LEAPFROGGERS
Incremental/Connected
Leapfrog/Autonomous
Optimal Alignment
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 17
Optimal Alignment
17
RIDE PROVIDERS
HIGHWAYAUTHORITIES
REGULATORS CONNECTORS
LEAPFROGGERSOEMs
Incremental/Connected
Leapfrog/Autonomous
● M o b i l i t y . S a f e t y . C u s t o m e r s . E c o n o m y . R e s p o n s i b l e S t e w a r d ● 18
Optimal Liability
18
USERRIDE PROVIDERS
HIGHWAYAUTHORITIESREGULATORSCONNECTORSLEAP
FROGGERSOEMs