Legal Risks for Software Developers
The world runs on software, and innovation must be on-going to keep pace with ever-evolving technology. Companies who develop software are often quietly building the future as we’ll know it. While creativity and coding skills are handsomely rewarded, developers also face inherent risks when their work becomes part of a public company.
Here are a few things to keep an eye on as your digital ideas become software realities:
Intellectual property issues: Developers should be sure that as they create new software, they’re not infringing the intellectual property rights that someone else has already established. Searching for previously established patents, trademarks, and copyrighted materials may be a good idea, depending on the field in which you are working.
Defects: If your software has bugs or other user issues that can cause work product misfires, or other economic harm, you may be held liable, especially if you do not have contractual safeguards in place.
Legal compliance: It can be complicated, but you simply must be sure you comply with laws and regulations such as GDPR, HIPAA, or CCPA.
Privacy and data security: You can be held liable for data breaches in your software or failure to protect user privacy.
Cybersecurity: You may also be liable for damages caused by security vulnerabilities in your software, such as malware or ransomware.
Third-party liability: If you integrate your software with third-party software or libraries that cause harm, you may be liable for any damages resulting from its use.
Professional liability: Be sure to keep your development project on time and within budget. If you fail to do so, you may be held responsible for not delivering according to the agreed-upon timetables or having to work to finish the project without additional compensation for your time.
Misrepresentation: Developers may also be held liable for false or misleading statements about the capabilities or performance of their software.
Fortunately, there are ways to minimize and/or mitigate each of these risks. Using industry best practices for legal, compliance, and security is a good start. Further, thoroughly testing your software before delivery, integration, and launch may not prevent all your future issues, but it will go a long way to ward off problems down the road.