● 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

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Optimal Liability

Risk

Tol

eran

ce

Consumer Benefit

Acceptability

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Legal System Can Handle Transportation Leaps

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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?

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The Six AV Drivers

OEMs

RIDEPROVIDERS

REGULATORS

LEAPFROGGERS

HIGHWAYAUTHORITIES

CONNECTORS

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OEMs

Development: Incremental steps; AV maybe; keep driver in loop

Liability: Retain existing framework

Driver Driver

OEM

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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

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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

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Leapfroggers

Development: Humans are problem – AV fixes

Liability: Big potential liability exposure – uncertainty

Victim

OEM

Hardware/Software provider

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Ride Providers

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

Liability: Accidents by drivers

Provider Victim

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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

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OEMs Ride ProvidersRide Providers Highway Authorities

Aligning Liability with Interests

Highway Authorities Leapfroggers Leapfroggers RegulatorsRegulators ConnectorsConnectors OEMS

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Suboptimal Alignment

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RIDE PROVIDERS

HIGHWAYAUTHORITIES

REGULATORS CONNECTORS

LEAPFROGGERSOEMs

Incremental/Connected

Leapfrog/Autonomous

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CONNECTED AUTOMATED

VEHICLE

OEMs

HIGHWAYAUTHORITIES

REGULATORS

RIDE PROVIDERS

CONNECTORS

LEAPFROGGERS

Incremental/Connected

Leapfrog/Autonomous

Optimal Alignment

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Optimal Alignment

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RIDE PROVIDERS

HIGHWAYAUTHORITIES

REGULATORS CONNECTORS

LEAPFROGGERSOEMs

Incremental/Connected

Leapfrog/Autonomous

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Optimal Liability

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USERRIDE PROVIDERS

HIGHWAYAUTHORITIESREGULATORSCONNECTORSLEAP

FROGGERSOEMs