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Exploring the Legal Risks and Liabilities of Manufacturers in the 3D Printing Industry

Inside3DPrintingSantaClara_MichaelBruyere

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Page 1: Inside3DPrintingSantaClara_MichaelBruyere

Exploring the Legal Risks and Liabilities of Manufacturers in the 3D Printing

Industry

Page 2: Inside3DPrintingSantaClara_MichaelBruyere

A Printer in Every Home?

• There could soon be “a printer in every home.”—Brook Drumm

• 3D printers will “become a part of our daily lives . . . much sooner than anyone anticipated.”—The New York Times

• Economically, this is great news for the 3D industry . . . But what about legally?

Page 3: Inside3DPrintingSantaClara_MichaelBruyere

Liability Implications of Industry Growth?

• As 3D printers become increasingly commoditized, the following phenomena are certain to occur:– Product production driven closer to the end user– Defects in design and manufacture may cause

economic or personal injury– Misused printers or products may result in

damage to business, property, or persons

Page 4: Inside3DPrintingSantaClara_MichaelBruyere

Implications?

• Injured businesses and persons (and their attorneys) will look for liable parties—that can pay!– The manufacturer of the printer?– The seller of the printer?– The designer?– The material supplier?– The user of the printer? – All of the above?

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There are many ways to sell 3D printers. . .

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Thus, there are many ways you could be liable for any printing mishaps. . .

Page 7: Inside3DPrintingSantaClara_MichaelBruyere

Ramblin’ Wreck

• Miss Georgia, a Georgia Tech student, wore these 3D printed shoes representing the school’s mascot, the Ramblin’ Wreck, for the Miss America pageant’s “Show us your shoes” parade

• The shoes were made by Georgia Tech industrial design students

Page 8: Inside3DPrintingSantaClara_MichaelBruyere

Ramblin’ Wreck

• Imagine if the beauty pageant contestant were to wear these shoes while walking across the competition stage when . . .

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Ramblin’ Wreck

. . . one shoe breaks, causing her to fall down and fracture her foot (and likely costing her the crown).

Page 10: Inside3DPrintingSantaClara_MichaelBruyere

Potential Defendants- Industrial Students?

– Negligent in design or manufacture of shoes• This means they owed her a duty of ordinary care

and their failure to exercise ordinary care caused her injury• Defense—exercised due care; failure to pinpoint

negligent individual

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Potential Defendants- Industrial Students?

– Strictly liable for the injury because the shoes were defective• “Defective” can mean either:

– a) shoes were, by design, inherently dangerous– b) shoes weren’t manufactured the way they should have

been, or – c) instructions and/or warnings that came with the shoes

were insufficient

• Defense—Not in the chain of commerce

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Potential Defendants- Industrial Students?

– Breached an express warranty that shoe would not break • The students expressly promised—orally or in writing—

that the shoes could be worn without breaking• Defense—No express promise

– Breached an implied warranty that shoes were safe for walking• This means there is an implied promise that the

product will do what it’s marketed to do• Defense—Disclaimer

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Potential Defendants- 3D Printer Manufacturer?

– Defective product• Strict liability for a printer defectively manufactured, such that the particular printer had a manufacturing flaw that stopped it from printing shoe to specification

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Potential Defendants- 3D Printer Manufacturer?

– Breach of Warranty• Breach of an express warranty that printer would make

a product fitting the exact design specifications– Defense—No contract between printer manufacturer and

Plaintiff

• Breach of an implied warranty that printer would make a product according to specifications– Defense—Disclaimer

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Potential Defendants- Materials Supplier?

– Breach of express warranty that material can withstand a certain amount of force• Defense—No contractual relationship between supplier and

plaintiff

– Breach of implied warranty that material can support a certain amount of weight• Defense—Lack of implied warranty; disclaimer

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Or …

Page 17: Inside3DPrintingSantaClara_MichaelBruyere

UPS Store Explosion

• UPS has added 3D printing services at 106 stores across the country

• Damian uses one of UPS’s 3D printers to make a prototype of his new invention. In the middle of the printing, the printer explodes and injures Damian and bystanders.

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Potential Defendants

• 3D Printer Retailer– Strict liability for selling a defectively designed printer– Failure to warn of the dangers associated with 3D

printers

• 3D Printer Manufacturer– Strict liability for designing a defective printer– Failure to warn of the dangers associated with 3D

printers

Page 19: Inside3DPrintingSantaClara_MichaelBruyere

Hot Printer

• Veronica orders a 3D printer online. The instructions state: “WARNING: DO NOT COVER. RISK OF OVERHEATING.” Veronica, however, fails to read the instructions. She covers the printer with a table cloth to make it more attractive. The printer subsequently catches fire, damaging our home.

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Potential Defendants

• Online retailer– Shrink wrap agreement?

• 3D Printer manufacturer– Sufficient warning?

• Defenses– Product misuse– Assumption of the risk– Contributory negligence

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Down the Chain

• Parts O’Neil Co. manufactures temperature sensors for 3D printers

• Assembler, Inc., assembles 3D printers and buys its temperature sensors from Parts O’Neil

• Tech O’Hoy is a retail store that buys assembled 3D printers from Assembler, Inc.

• Alex buys 3D printer from Tech O’Hoy. The printer’s temperature sensor malfunctions, causing the printer to set on fire

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Potential Defendants

• Everyone in the chain of commerce!

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Down the Chain, Cont.

• This means….– The parts and materials suppliers• Defective part

– The assembler/wholesaler• Defective part• Negligent assembly of product

– The retailer• Defective part• Defective product

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Attempt to limit litigation and liability risks

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Preventative Measures

(1) Buy insurance– Covers liability and defense costs

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Preventative Measures, Cont.

(1) Buy insurance– Covers liability and defense costs

(2) Contractual liability shifting and sharing– Warranty disclaimers – Limit warranty to specified uses– Conflict resolution specifications, such as

mandatory arbitration

Page 27: Inside3DPrintingSantaClara_MichaelBruyere

Preventative Measures, Cont.

(1) Buy insurance– Covers liability and defense costs

(2) Contractual liability shifting and sharing– Warranty disclaimers – Limit warranty to specified uses– Conflict resolution specifications, such as mandatory

arbitration

(3) Attach warnings of any potential dangers or misuses– Must be clear and conspicuous

Page 28: Inside3DPrintingSantaClara_MichaelBruyere

Preventative Measures, Cont.

(1) Buy insurance– Covers liability and defense costs

(2) Contractual liability shifting and sharing– Warranty disclaimers – Limit warranty to specified uses– Conflict resolution specifications, such as mandatory arbitration

(3) Attach warnings of any potential dangers or misuses– Must be clear and conspicuous

(4) Hire a risk manager or, heaven forbid, an attorney to advise you on your potential for liability and how to limit such risk

Page 29: Inside3DPrintingSantaClara_MichaelBruyere

Michael P. Bruyere

Atlanta| San Francisco| PhiladelphiaLos Angeles| Newport Beach

New Jersey| Tampa