autonomous/connected vehicles: getting to optimal liability

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Mobility. Safety. Customers. Economy. Responsible Steward Autonomous/Connected Vehicles: Getting to Optimal Liability Tom Bamonte (@TomBamonte) General Counsel ITS 21 st World Congress Sept. 9, 2014 1 – 2:30 pm Cobo, 140 C North Texas Tollway Authority

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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.

TRANSCRIPT

Page 1: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

Page 2: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

Page 3: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

Page 4: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

Page 5: Autonomous/Connected Vehicles: Getting to Optimal Liability

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Legal System Handles Transportation Automation

Page 6: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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?

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Page 7: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

Page 8: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

Page 9: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

Page 10: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

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Connector

Development: Push content to/from vehicles and occupants

Liability: Pass through liability from victims of distracted drivers; privacy and security breaches

Page 11: Autonomous/Connected Vehicles: Getting to Optimal Liability

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Leapfroggers

Development: Humans are problem – AV fixes

Liability: Big potential liability exposure – uncertainty

Victim

OEM

Hardware/Software provider

Page 12: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

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Development: Penetrate markets; overcome local monopolies; wean people from car ownership

Liability: Accidents by drivers

Provider Victim

Page 13: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

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Development: Bystanders for most part

Liability: Largely protected by sovereign immunity and favorable state laws

Highway Authority

OEM

Driver Driver

Page 14: Autonomous/Connected Vehicles: Getting to Optimal Liability

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OEMs Ride ProvidersRide Providers Highway Authorities

Aligning Liability with Interests

Highway Authorities Leapfroggers Leapfroggers RegulatorsRegulators ConnectorsConnectors OEMS

Page 15: Autonomous/Connected Vehicles: Getting to Optimal Liability

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Suboptimal Alignment

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RIDE PROVIDERS

HIGHWAYAUTHORITIES

REGULATORS CONNECTORS

LEAPFROGGERSOEMs

Incremental/Connected

Leapfrog/Autonomous

Page 16: Autonomous/Connected Vehicles: Getting to Optimal Liability

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CONNECTED AUTOMATED

VEHICLE

OEMs

HIGHWAYAUTHORITIES

REGULATORS

RIDE PROVIDERS

CONNECTORS

LEAPFROGGERS

Incremental/Connected

Leapfrog/Autonomous

Optimal Alignment

Page 17: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

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RIDE PROVIDERS

HIGHWAYAUTHORITIES

REGULATORS CONNECTORS

LEAPFROGGERSOEMs

Incremental/Connected

Leapfrog/Autonomous

Page 18: Autonomous/Connected Vehicles: Getting to Optimal Liability

● 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

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USERRIDE PROVIDERS

HIGHWAYAUTHORITIESREGULATORSCONNECTORSLEAP

FROGGERSOEMs