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Microsoft liable for flaws?

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Microsoft

In addition to the new Firefox reference, Microsoft's annual Form 10K includes an interesting addition to the otherwise standard passage on the risk factors related to computer security problems. For starters, the heading of the passage last year (scroll to page 31) was simply "Security." This year, (page 14) the title is "Security vulnerabilities in our products could lead to reduced revenues or to liability claims." And here's the newly added language:

We devote significant resources to improving the security design and engineering of our software. Nevertheless, actual or perceived vulnerabilities may lead to claims against us. While our license agreements typically contain provisions that eliminate or limit our exposure to such liability claims, there is no assurance these provisions will be held effective under applicable laws and judicial decisions.

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