Automotive sector's predicament with open source software in MG 4 Electric: A potential liability linked to license-free programming

The entry of Chinese manufacturers into the European market, particularly in the automotive sector, is facing new challenges. The case of the MG 4 Electric has highlighted the complexity that goes beyond type approvals.

It has been revealed that the MG 4 Electric, a vehicle produced by SAIC Motor Corporation, uses open-source software, including a Linux-based operating system, without any license evidence. This practice, according to experts, can be considered intent and may potentially jeopardize safety and update obligations.

The use of open-source software with copyleft licenses, such as GPLv2 or GPLv3, poses practical challenges for manufacturers. These licenses require subsequent licensing of changes and further processed software under the same license, including the source code. In the case of the MG 4, integrating their own control or sensor data seems insurmountable when using such open-source software.

Lacking proper license management could have far-reaching consequences. Vehicle buyers can assert warranty claims if usage rights are missing for open-source software in vehicles. The risk of a series defect affects not only private customers but also leasing companies that normally exclude warranty risks as part of their business model.

Once dealers and leasing companies gain knowledge of the defect, liability risks can significantly increase. Leasing companies like Arval must inform their customers if they know about the defect in the MG 4's open-source software usage, or liability cases may arise. If purchase contracts or correct powers of attorney are missing, leasing companies can also be held liable under rental law for the MG 4's unlicensed open-source software usage.

The Federal Motor Transport Authority (KBA) has the power to revoke type approvals if defects are found. In this case, vehicles without legally clean software could effectively be taken off the road. This new legal strategy opens the door to rescissions, price reductions, and damages claims for buyers of vehicles with unlicensed open-source software.

Compliance, license management, and consumer protection are crucial factors for the long-term success of Chinese manufacturers in the European market. The MG 4 case underscores the importance of these factors and serves as a reminder for all manufacturers to prioritise them in their operations.

Automotive sector's predicament with open source software in MG 4 Electric: A potential liability linked to license-free programming