The new EU Product Liability Directive

Software manufacturers take note: The EU's new product liability directive fundamentally changes the rules of the game for software manufacturers. In future, software will be regarded as a product within the meaning of the directive. How can the new requirements be met and liability risks be minimised? A central building block is carefully thought-out and detailed software documentation. We have summarised the key points for you.

Understanding the new liability risks

The new directive significantly expands the scope of product liability: Software – whether stand-alone or as part of a product – is now explicitly considered liable. Manufacturers are liable for damage if software is faulty or does not meet safety requirements. This also applies to "intelligent" products with adaptive software components or those that are connected to other digital services.
Companies are also obliged to continue keeping their products free of errors after sale by means of security updates. If the measures are not implemented correctly, this can result in considerable liability risks.

Software documentation as a protective shield

In this new liability framework, good software documentation is more than just nice-to-have – it becomes an indispensable risk management tool. It can make a decisive contribution to reducing liability risk in the following areas:

1. Online help and user manuals
   A well-structured user manual and online help ensure that users can operate the software correctly. A clear presentation of functions and potential limitations reduces the risk of operating errors that could be interpreted as software errors.
2. FAQ areas and troubleshooting guides
   These guides provide quick access to answers to common questions and troubleshooting instructions. They promote safe use and minimise misinterpretation or risky operation.
3. API documentation
   Clean API documentation is essential for products with interfaces. It ensures that external developers integrate and use the software correctly. This reduces the likelihood of damage caused by improper implementation.
4. Cybersecurity documentation
   The directive defines a lack of cybersecurity as a potential product defect. Documentation that describes security protocols, update cycles and protective measures in detail prevents liability claims and underlines the diligence of the manufacturer.

Further advantages of precise documentation

Good software documentation not only helps to minimise liability risks but also offers decisive further advantages:

• Makes it easier to provide evidence: In the event of claims for damages, the documentation provides evidence that the software was properly designed and provided with updates.
• Creating trust: Customers and business partners see high-quality user information as a sign of professionalism and care.
• Promote compliance: Documentation helps to meet the requirements of not only the Product Liability Directive, but also other regulations such as the Cyber Resilience Act (CRA).

When does the Product Liability Directive apply?

The new Product Liability Directive (EU) 2024/2853 came into force on December 8, 2024, replacing previous regulation from 1985. The member states must transpose the directive into national law within 24 months. It must therefore be applied from December 2026.

Our conclusion: Clean documentation pays off.

The new Product Liability Directive imposes stricter requirements and new tasks on software manufacturers. However, companies can significantly reduce the risk of liability by providing comprehensive software documentation. From online help to security guidelines and API documents – a well thought-out documentation strategy is key to defending against liability claims and building trust with users.

Take the opportunity to revise your documentation now and bring it up to date. In that way, you will be ideally equipped to meet the challenges of the new directive.