Then companies can balance the cost of adding a secure enclave and a Grsec kernel (just an example) to their smart coffee maker against having to recall all of their infected products from the market when a botnet takes over them.
Besides that stick, I would throw a couple of carrots in there, too, like the companies being able to brag that their products are A+ security rated, etc, in their promotional materials and on their packages.
In short, I think regulations will prevent more damage than post-hoc legal retribution.
Time has proven that wrong so far. We got a lot of highly-secure products after DOD's Computer Security Initiative giving clear guidance plus financial incentive. DO-178B and other safety-critical markets are cranking out lots of them on safety side. So is segment of smartcard industry focused on high-security.
Regulation works so long as it has effective standards, they're clear, evaluated against product, and must be followed to sell the product. As in TCSEC era and DO-178B, reusable components for common cases show up to reduce the evaluation cost or risk. Open-source security would likely get a boost, too, as companies sponsoring it would sponsor certifiable versions with the higher QA.
The constraints of DoD CSI, DO-178B, and the smart card industry focus are all embodied in regulations, which precede legal retribution.
If a company busts the regs, it can be sued. But the first line of defense is that companies are required to do it right - by the regulations.
I agree regulation needs clear definition and followup to be effective. I continue to regard regulation as a better mitigator of damage than post-hoc penalties.
Regulation is about preventing a mess. Litigation is about cleaning it up. I'd rather not have the mess to begin with.
That's exactly it. Although, I did propose possibility in this thread of defining regulations that aren't immediately applied but apply in court after harm is alleged. The reason being evaluation costs and time can be a big problem, esp for startups. This lets them simply follow guidelines with evidence produced during development & they only pay the cost if they screw up. The cost goes up with level of deviation and harm it caused.
Just cause it worked for the DOD doesn't mean it'll work everywhere else.