Open-Source Software and Open-Source Hardware under the new European Product Liability Directive

As part of the European Green Deal, the EU aims to become fully climate-neutral, promoting sustainable innovation through a circular economy. Open-Source Software and Open-Source Hardware play a key role in this transition, enabling repairable, durable, and collaboratively designed products. However, despite their potential to contribute significantly to EU sustainability goals, many open-source developers remain hesitant to publish or commercialize their work due to legal uncertainties and liability risks. These “chilling effects” stem primarily from concerns over strict liability for defects under the existing EU Product Liability Directive (Directive 85/374/EEC). In response, the EU has adopted a revised Product Liability Directive (Directive (EU) 2024/2853) to modernize liability rules for the digital age. Notably, it explicitly excludes free and open-source software developed outside commercial contexts from strict liability and clarifies rules for digital manufacturing files and software. This article examines whether the PLD New provides the legal certainty necessary to reduce liability fears and unlock the full sustainability potential of Open-Source Software and Hardware. It introduces the concepts, stakeholders, and previous legal challenges, before analysing the directive’s impact and critically assessing whether it represents a turning point or a new obstacle for the open-source movement in Europe.