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AUTONOMOUS VEHICLES - 101 Michael J. Vetter, Sr. SPICER RUDSTROM, PLLC Philips Plaza 414 Union Street, Suite 1700 Nashville, TN 37219 T: 615-259-9080 F: 615-259-1522 D: 615-425-73522 email: [email protected] web: www.spicerfirm.com Jack C. Henning DILLINGHAM & MURPHY, LLP 601 Montgomery Street Suite 1900 San Francisco, CA 94111 T: 415-397-2700 F: 415-397-3300 email: [email protected] web: www.dillinghammurphy.com 1

AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

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Page 1: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

AUTONOMOUS VEHICLES - 101

Michael J. Vetter, Sr. SPICER RUDSTROM, PLLCPhilips Plaza 414 Union Street, Suite 1700 Nashville, TN 37219 T: 615-259-9080 F: 615-259-1522D: 615-425-73522email: [email protected]: www.spicerfirm.com

Jack C. HenningDILLINGHAM & MURPHY, LLP601 Montgomery StreetSuite 1900San Francisco, CA 94111 T: 415-397-2700 F: 415-397-3300email: [email protected] web: www.dillinghammurphy.com

1

Page 2: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

AUTONOMOUS VEHICLESI. Autonomous Vehicles – Generally how they workII. Basic Technology

A. Radar, Lidar, Cameras, Computers, and GPSB. Lane DetectionC. Cruise ControlD. Driver Assistance E. Vehicle to Vehicle Communication

III. Autonomous Cars and TrucksA. Driverless Trucks B. PlatooningC. Human MonitoringD. Automatic SteeringE. Automatic Braking and Acceleration

IV. Insurance and Liability IssuesA. Who is the driver?B. Who is potentially liable?C. Insurance premiums

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Page 3: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

AUTONOMOUS VEHICLES (cont’d)

D. Increase or decrease in claims 1. Fewer accidents2. More expensive repairs – equipment

V. Product Liability Claims A. ManufacturersB. What claims will be covered?C. Claims against the Driver, Owner, and ManufacturerD. Potential Strict Liability or Self Insured No FaultE. Limitations – Completed Product –ExclusionsF. What will be covered

VI. Data CollectionA. Sensors, Monitoring, and SharingB. All Travel InformationC. Interior vehicle Cameras and MonitoringD. Inter-Vehicle and Company

Communications

3

Page 4: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

AUTONOMOUS VEHICLES (cont’d)VII. On and Off Autonomous Vehicle Systems – the Hot Potato?VIII. Real World Considerations

A. Take me there – Asleep at the WheelB. Decision MakingC. What are the Programming Priorities

IX. Mechanical DefectsX. Software Problems and Defects

A. ProgrammingB. Hacking

XI. Legislative Overview

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Page 5: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

What is an Autonomous Vehicle?“A vehicle system that utilizes hardware and software in order to perform

the driving function by controlling and combining braking, throttle, and

steering functionality.”

“A vehicle that gets from one point to another point without human

interaction.”

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Page 6: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

• 10 million autonomous vehicles will hit the roads by 2020

• In 10 years fully autonomous vehicles will be the norm

• AVs will generate a$7 trillion annual revenue stream by 2050

• Widespread adoption of AVs could lead to a90% reduction in

vehicle crashes

Introduction

Sources:

https://www.forbes.com/sites/oliviergarret/2017/03/03/10-million-self-driving-cars-will-hit-the-road-by-2020-heres-how-to-profit/#45627b757e50

https://www.cnbc.com/2017/06/01/the-7-trillion-promise-of-self-driving-vehicles.html

https://www.reuters.com/article/us-usa-autos-autonomous/self-driving-cars-could-generate-billions-in-revenue-u-s-study-idUSKBN0M10UF20150305

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Page 7: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

History of Autonomous Vehicles

7

Introductionof Cruise Control

1948

Google begins self-driving car

project

2009

Teams create vehicles that self-navigate a 60-mile course as part of DARPA "Grand

Challenge"

2007

Google's autonomous car passes a

14-mile driving test in

Nevada

2012

Tesla releases its Auto-Pilot self-driving

mode

2015

NHTSA issues revised safety guidelines for autonomous

vehicles

2017

NHTSA releases

initial policy on

autonomous vehicles

2013

Uber hires 40 Carnegie Mellon

robotics researchers to work on

autonomous vehicles; Ford

begins testing its self-driving cars in

CA, AZ, MI

2015

Mercedes and Infiniti produce cars with radar

sensors and some

autonomous driving features

2013

Major acquisitions and partnerships (GM

and Cruise Automation; GM and

Lyft; Toyota and Jaybridge Robotics;

Uber and Volvo

2016

NHTSA issues guidelines for

testing and deployment of autonomous

vehicles

2016

Page 8: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

SAE Levels of Automation

Source: https://www.nhtsa.gov/technology-innovation/automated-vehicles-safety

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Page 9: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Level 0: No Driving Automation

The human driver conducts the driving task with momentary, or no,

intervention from the vehicle system.

9

Level Driving Fallback Domain

0 Driver Driver Unlimited

Page 10: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Level 1: Driver AssistanceThe human driver conducts the driving task while the autonomous

driving system is capable of controlling the longitudinal, or lateral,

motion of the vehicle for a sustained period.

Level Driving Fallback Domain

1 Driver &

System

Driver Limited

10

Page 11: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Level 2: Partial Driving AutomationThe human driver conducts the driving task while the autonomous

driving system is capable of controlling both longitudinal and lateral

motion of the vehicle for a sustained period.

Level Driving Fallback Domain

2 Driver &

System

Driver Limited

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Page 12: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Level 3: Conditional Driving AutomationThe system conducts the driving task while the fallback responsibility

falls on the human driver.

Level Driving Fallback Domain

3 System Driver Limited

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Page 13: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Level 4: High Driving AutomationThe system is responsible for both the driving task and fallback while

being operated in a well defined domain.

Level Driving Fallback Domain

4 System System Limited

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Page 14: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Level 5: Full Driving AutomationThe system is responsible for both the driving task and fallback in any

domain.

Level Driving Fallback Domain

5 System System Unlimited

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Page 15: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Levels of Autonomy

15

Level Driving Fallback Domain

0 Driver Driver Any

1 Driver & System Driver Limited

2 Driver & System Driver Limited

3 System Driver Limited

4 System System Limited

5 System System Unlimited

Page 16: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Basic Physical Ecosystem of an Autonomous Vehicle

Source: The Economist, “How does a self-driving car work?”

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Page 17: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Key Physical Components of Autonomous Vehicles

• Cameras – Provide real-time obstacle detection to facilitate lane departure and track roadway information (like road signs).

• Radar – Radio waves detect short & long-range depth.

• LIDAR – Measures distance by illuminating target with pulsed laser light and measuring reflected pulses with sensors to create 3-D map of area.

• GPS – Triangulates position of car using satellites. Current GPS technology is limited to a certain distance. Advanced GPS is in development.

• Ultrasonic Sensors – Uses high-frequency sound waves and bounce-back to calculatedistance. Best in close range.

• Central Computer – “Brain” of the vehicle. Receives information from various components and helps direct vehicle overall.

• DRSC - Based Receiver – Communications device permitting vehicle to communicate with other vehicles (V2V) using DSRC, a wireless communication standard that enables reliable data transmission in active safety applications. NHTSA has promoted the use of DSRC.

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Page 18: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Short and Long Range Communications

➢ GPS

➢ Ultrasonic

➢ Radar

➢ LiDAR

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Page 19: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Ultrasonic Sensors• Sends out sound waves, and listens for reflected

sound waves of the same frequency. Can detect

objects.

• Range is about 6 feet, sounds waves spread out.

• Parking Assist

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Page 20: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Radar• Send out radio waves in a specific direction, detect

reflections of the same frequency.

• Useful for both detection and ranging (finding the

distance to an object).

• Possibly useful for finding the velocity of an object.

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Page 21: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

LiDAR (Light Detection and Ranging)

21

LiDAR instruments emit rapid laser signals, which bounce back from the

obstacles. Radar instruments use radio waves instead of laser. Most

autonomous vehicle manufacturers including Google, Uber, and Toyota rely

heavily on the LiDAR systems to generate detailed, three-dimensional maps

of the immediate surroundings such as pedestrians and other vehicles. High-

end LiDAR sensors can identify the details of a few centimeters at more than

100 meters. For example, Waymo's LiDAR system not only detects

pedestrians but it can also tell which direction they’re facing.

Page 22: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Single or Multiple Cameras

• Used like the eye (or eyes) to see what’s there. Twocameras, separated by some distance allows distancedetection.

• Much like human or animal vision, two images fromcameras at different locations allow the brain (or acomputer) to estimate the distance.

• Very good at reading lane markings.

• May be able to read signs.

Page 23: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

This, at 500 feet, looks like a pedestrian at 100 feet.

Page 24: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Level 2 fatalities

24

Level 2 is considered automated driving, but not

autonomous driving. A Level 2 driving system expects a

driver to be fully aware at any time of the driving and traffic

situation and be able to take over any moment

List of known automated driving system car fatalities (occurring while automated driving-system acknowledged to have been engaged)

DateIncident

no.Country City

State/county/

province

No. of

fatalities

System

manu-

facturer

Vehicle

Type

Distance

driven by

the system

at time of

incident

Notes

20 January

20161 China Handan Hebei 1

Tesla

(Autopilot)Model S —

Driver

fatality.

7 May 2016 2

United

States of

America

Williston Florida 1Tesla

(Autopilot)Model S

130,000,000

mi

210,000,000

km

Driver

fatality.

23 March

20184

United

States of

America

Mountain

ViewCalifornia 1

Tesla

(Autopilot)Model X —

Driver

fatality.

Page 25: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Level 3 fatalities

25

A Level 3 autonomous driving system would occasionally

expect a driver to take over control

List of known autonomous car fatalities (occurring while autonomous-system acknowledged to have been engaged)

DateIncident

no.Country City

State/county/

province

No. of

fatalities

System

manu-

facturer

Vehicle

Type

Distance

driven by

the system

at time of

incident

Notes

18 March

20183

United

States of

America

Tempe Arizona 1 Uber'Refitted

Volvo'—

Pedestrian

fatality

Page 26: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

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Page 27: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

The Moth Incident: US 93 near Las Vegas

Page 28: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

The Tesla Fatality

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Page 29: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

The Tesla Fatality• May 7, 2016, Florida

• Big white box trailer pulls out in front of a Tesla that is

running in ‘AutoPilot’

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Page 30: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

The Uber Fatality

• March 18, 2018 in Tempe, AZ

• Volvo XC90

• In fully autonomous mode

• Driver behind the wheel

• ~40mph at time of incident

• Uber has suspended AV testing

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Page 31: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

The Uber Fatality

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Page 32: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

The Other Tesla Fatality

• March 2018

• Mountain View, California

• Tesla collides with barrier

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Page 33: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Cybersecurity

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Page 34: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Data CollectionA. Sensors, Monitoring, and SharingB. All Travel InformationC. Interior vehicle Cameras and MonitoringD. Inter-Vehicle and Company

Communications

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Page 35: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Potential Attack Gateways

• Electrical Control Units (ECUs)

• Airbag, Advanced Driver Assistant System, Engine, Steering & Brakes, etc.

• On-Board Diagnostics (OBD) II Diagnostic Port

• Dedicated Short-RangeCommunications-Based Receiver

• USB Ports

• Passive Keyless Entry/ Remote Key

• Remote Link Type App

• Tire Pressure Monitoring System (TPMS)

Source: Telematics Wire: Cybersecurity – A Gating Issue for Safety in A

Connected and Automated Vehicle Future

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Page 36: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Explanation of Key Attack Gateways• Electronic Control Units (ECUs) – ECUs are embedded systems that control one or more

electrical systems or subsystems within a vehicle and are connected via an internal network. They control systems like the engine and transmission, steering and brakes, infotainment, lighting, etc. Risks arise when access to ECUs (usually peripheral ECUs like an infotainment system) are breached and malicious actors are able to access certain ECUs or the whole network. Vehicles today have up to 100 ECUs onboard.

• OBD II Diagnostic Port – Every car manufactured after 1996 and sold in the U.S. must have an OBD II installed. The port was originally mandated to permit monitoring of emissions, etc. It is increasingly used to facilitate non-diagnostic features like enabling Wi-Fi, or enabling an insurance company to track usage through attachment of a “dongle” to the port. These ports can provide a means of access for attackers into an otherwise secure system.

• DSRC-Based Receivers – DSRC is being promoted as a means of encouraging V2V and vehicle-to-infrastructure (V2I) communications. The short-wave communications can be subject to spoofing and other attacks. There’s now a push to move to more advanced 5G-based communications.

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Page 37: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Common Security Vulnerabilities• Software Glitches – Connected vehicles today contain more than 100 million lines of

code. More code means more opportunity for bugs and mistakes. Glitches, even when inadvertent, can be exploited.

• No Single Source of Knowledge of or Control Over Source Code – Software for different components of connected vehicles is being written by different developers, installed by different supplies, and no one source has knowledge of or control over the source code.

• Increase Use of Apps Leave Vulnerabilities – Consumers are using an increasing number of smartphone apps to interface with their connected cars and help run certain functions. Researchers have already demonstrated weaknesses in some of these apps. Likely to see spread in use of malware.

• Need for Constant Updates May be Overlooked – With the increased use of connected features comes an increased need for continuous updates to fix glitches and help protect vehicles. There is a risk these updates could be overlooked or that malicious actors could infect routine updates.

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Page 38: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Cybersecurity Threats and Concerns• The same types of attacks that are possible

in any connected device are generally possible in connected vehicles once access is gained.

• For example – Denial-of-service (DoS) attacks (e.g., utilizing the Controller Area Network (CAN) Bus system), remote access and control (e.g., the 2015 Jeep event), man-in-the-middle (MiM) attacks, etc.

• The difference between attacks like these against common IoT devices and attacks within a connected or autonomous vehicle is the likelihood for increased risk to life and property in the vehicle context.

Source: CNN: Jeep remotely carjacked, shut down on

highway

The 2015 white hat attack on a Jeep

Cherokee led to the recall of 1.4 million

vehicles and highlighted risks.

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Page 39: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Consumers Desire and Fear ConnectivityIn 2014, McKinsey conducted a survey of 2,000 new-car buyers in Brazil, China, Germany, and the U.S. about connected car issues. The survey remains interesting for the disjoint it highlights between consumer desire for connectivity and consumer fear of the possibility of attacks as a result of that connectivity.

• 13% of car buyers are no longer prepared to even consider a new vehicle without Internet access.

• More than ¼ of car buyers now prioritize connectivity over features like engine power and fuel efficiency.

• 45% of U.S. car buyers are reluctant to use car-related connected services because they want to keep their privacy.

• 43% of U.S. car buyers are afraid that people can hack into their cars and manipulate the systems if the car is connected to the Internet.

Source: McKinsey’s Connected Car Consumer Survey, 2014.

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Page 40: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Data Privacy

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Page 41: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Privacy Concerns“GPS monitoring generates a precise, comprehensive record of a person’s public movements that reflects a wealth of detail about her familial, political, profession, religious, and sexual associations. . . . I would take these attributes . . . into account when considering the existence of a reasonable societal expectation of privacy in the sum of one’s public movements.”

“[I]t may be necessary to reconsider the premise that an individual has no reasonable expectation of privacy in information voluntarily disclosed to third parties. This approach is ill suited to the digital age, in which people reveal a great deal of information about themselves to third parties in the course of carrying on mundane tasks.”

United States v. Jones, 565 U.S. 400 (2012) (Sotomayor, J. concurring).

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Page 42: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Multiple Players are Collecting Data from MultiplePoints Within Connected and Autonomous Vehicles

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Page 43: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Common Data Privacy Vulnerabilities

• Data related to vehicle journeys – Car makers, app developers, on-boardassistance systems, etc. collect data regarding movements of vehicle. Length oftime data is kept, who has access to it, and whether consumer has right to opt-out are key issues.

• Data on consumer habits and preferences – Data ranging from musicpreferences, news and radio selections, and other features is being used totarget consumers. How this is done and whether consent is obtained will dictate potential ramifications.

• Data from or related to children – Collection, use, and storage ofchildren’s data is governed by special rules which should be considered.

• Differences in regulations between markets – Privacy regulations varywidely by region and market. For example, the EU is set toimplement its groundbreaking data privacy and protection law, the GDPR, thisMay. The law includes a broad definition of personal information and strictrequirements for consent and use and protection of such data. Companiesworking in the European market need to be prepared.

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Page 44: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Litigation Risks – Data Privacy• Breach of vehicles’ systems that store consumer data, or breach of manufacturers’

systems containing such data, and the subsequent release of sensitive information may trigger notification obligations under state data breach notification laws and could, in some circumstances, lead to private lawsuits in some states.

• Collection and use of consumer behavior data to facilitate additional marketing efforts could also lead to lawsuits where that data is collected and used in this manner without consent and without informing consumers.

• Data on vehicle location and tracking could lead to increase requests from U.S. or other law enforcement agencies for assistance in locating or tracking suspects in criminal cases. Companies’ responses to such requests could lead to consumer distrust of such tracking features, or could lead to conflicts with law enforcement similar to those taking place regarding iPhone access.

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Page 45: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Key Privacy Takeaways• Build privacy protections into system designs – Consumer privacy protection should be

considered at each stage of system development and implementation.

• Obtain consent – Collection of some forms of consumer information is improper absent consent. Build mechanisms into systems to obtain consent and update consent as necessary.

• Recognize that children pose special risks –Collection, storage, and use of children’s data is protected by the Children’s Online Privacy Protection Rule (COPPA) and other laws and regulations.

• Limit collection of sensitive information – Collect only such information as necessary and protect what is collected. Do not collected personally identifiable information if not necessary for business purpose.

• Plan for and be ready to notify consumers in the event of an incident – Best protection against costly consumer litigation is timely and accurate notification, and having proper policies and procedures in place.

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Page 46: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Insurance and Liability IssuesA. Who is the driver?B. Who is potentially liable?C. Insurance premiumsD. Increase or decrease in claims

1. Fewer accidents2. More expensive repairs – equipment

Product Liability Claims A. ManufacturersB. What claims will be covered?C. Claims against the Driver, Owner, and ManufacturerD. Potential Strict Liability or Self Insured No FaultE. Limitations – Completed Product –ExclusionsF. What will be covered

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Page 47: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

In Litigation…..

Who

Is At

Fault

?

AutomakerDriver

Camera

Manufacturer

Software

Supplier

LiDAR

Manufacturer

RADAR

Manufacturer

Brake

Supplier

Tire

Supplier

47

Page 48: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Product Liability: State Laws

Florida, Michigan, Nevada and the District of Columbia shield manufacturers from liability for damages resulting from third party conversion of vehicle into autonomous vehicle, except where damages are caused by defect present in vehicle as originally manufactured.

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Page 49: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Managing Liability Among Parties

• Warranties and indemnifications should clearly define scope, responsibility andliability

• Responsibility for maintenance, repairs and updates should be defined

• Liability between automaker, technology company and vehicle owner/operator should be defined

• Responsibility for compliance with federal, state and local laws and regulationsshould be defined

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Page 50: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

On and Off Autonomous Vehicle Systems – the Hot Potato?Real World Considerations

A. Take me there – Asleep at the WheelB. Decision MakingC. What are the Programming PrioritiesD. Platooning

Legislative Overview

50

Page 51: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Legislation Enacted

AlabamaArkansasCaliforniaColoradoConnecticutDCFloridaGeorgiaIllinoisIndianaKentuckyLouisianaMichiganMississippiNebraskaNevadaNew YorkNorth CarolinaNorth DakotaOregonPennsylvaniaSouth CarolinaTennesseeTexasUtahVermontVirginia

No Laws

ArkansasHew HampshireIowaKansasMarylandMissouriMontanaNew MexicoNorth DakotaOklahomaRhode IslandSouth DakotaWest VirginiaWyoming

US Territories & Possessions:

American SamoaGuamNorthern Mariana IslandsPuerto RicoUS Virgin Islands

Executive Order

ArizonaDelawareHawaiiIdahoMaineMinnesotaOhio

Legislation & E.O.

MaineWashingtonWisconsin

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Page 52: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Recent Developments• January 2017 – Keolis and NAVYA, in partnership with the city of Las Vegas,

launched the first autonomous, fully electric shuttle to be deployed on a public roadway in the United States.

• January 2018 – Toyota announces “e-Palette” concept vehicle which is a fully electric autonomous vehicle that can be customized by a partner for applications such as food deliveries (Pizza Hut), ride-sharing (Uber), or store fronts (Amazon).

• January 2018 – Udelv, a Bay Area tech company, completed the first delivery of goods by a self-driving car when it delivered groceries in San Mateo.

• February 2018 – Hyundai announced that a fleet of its fuel cell electric cars made a successful fully automated trip from Seoul to Pyeongchang. This is the first time a Level 4 car has been operated with fuel cell electric cars.

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Page 53: AUTONOMOUS VEHICLES - 101. Product Liability.pdfautonomous vehicle manufacturers including Google, Uber, and Toyota rely heavily on the LiDAR systems to generate detailed, three-dimensional

Federal and State

Regulations

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Federal Regulation of Autonomous Vehicles

Federal Motor Vehicle Safety Standards

• The National Highway Traffic Safety Administration (NHTSA) within the Department of Transportation (DOT) specifies minimum safety performance requirements for motor vehicles and equipment. Automakers must certify compliance before selling vehicles.

• Fully autonomous vehicles (and some highly autonomous vehicles) would not meet current Federal Motor Vehicle Safety Standards (FMVSS) (i.e., if manufacturers seek to design vehicles without mirrors, bumpers, braking pedals, and other featured required by the FMVSS).

• NHTSA can approve a limited number of exemptions from the FMVSSs.

• NHTSA also can approve importation of autonomous vehicles that do not meet FMVSSs for testing, subject to conditions.

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Federal Legislation Governing Autonomous Vehicles

• Congressional efforts underway to amend current law regarding regulation of autonomous vehicles

• House and Senate bills have similar objectives:

• Authorize NHTSAto issue more exemptions from FMVSSs (up to 100,000 vehicles per year within three years after enactment)

• Require NHTSAto update FMVSSs to accommodate autonomous vehicles;

• Require mandatory safety assessment reporting of the elements similar to those inDOT’s voluntary safety assessment report

• Include cybersecurity and privacy requirements

• Preempt state regulation of safety but preserve state role to regulate licensing,registration, insurance, and other traditionally state functions

• House passed its bill in late 2017

• Senate bill is on hold while senators work through issues regarding privacy, cybersecurity and safety

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State Laws Governing Autonomous Vehicles

• 23 states and the District of Columbia have passed legislation governing autonomous vehicles (Alabama, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Louisiana, Michigan, New York, Nevada, North Carolina, North Dakota, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Vermont, and Washington D.C.).

• 10 additional states have executive orders in place issued by their governors relating to autonomous vehicles (Arizona, Delaware, Hawaii, Idaho, Maine, Massachusetts, Minnesota, Ohio, Washington, and Wisconsin).

• Arizona, California, Florida, Michigan, and Nevada have been most active.

• For a comprehensive review of state laws enacted see: http://www.ncsl.org/research/transportation/autonomous-vehicles-self-driving-vehicles-enacted-legislation.aspx#enacted

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Thank you for your attention.

If you have Questions?

• Don’t ask us.• Hire an expert.

Mike: [email protected]: [email protected]

Mike ArnetS-E-A, Chicago Office1800 Howard Street, Unit AElk Grove Village, IL 60007888-597-5084

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