Legal Aspects of Autonomous Vehicles. Adv. Gadi Ouzan, Partner at Shibolet & Co.

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2 Legal Aspects of Autonomous Vehicles Adv. Gadi Ouzan, Partner at Shibolet & Co.

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4 Ethics and Law Will the ending scene of Thelma and Louise be possible in the future? Vehicle Loyalty Programming Vehicles

5 Ethics and Law Legal Framework Codification Vs. Legislation of principles

6 Ethics and Law Codification Comprehensive and planned legislation by legislators

7 Ethics and Law Legislation of principles Legislation of basic principles Corporate Ethics Committee to set forth rules Approval by applicable regulatory body Implementation by R&D division Subject to supervision and obligated to reporting duties

8 Ethics and Law Legislation of principles Israel Will the MoT rely on an international certification Or National certification (The Standards Institution of Israel)

9 Liability Driver s Strict Liability No Longer Relevant Possible parties subject to liability: Manufacturers Software Developers Vehicle Distributers Regulatory Entities responsible for V2I infrastructure

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11 Liability To Date Enacted US State Bills in the District of Columbia, Florida, Michigan and Nevada limit the liability of original manufacturers in lieu of conversion of a vehicle into an autonomous vehicle. "The original manufacturer of a vehicle [...] shall not be liable in any action resulting from a vehicle defect caused by the conversion of the vehicle"

12 Liability Israel Discussions in the MoT about future regulations to be enacted

13 Legislation and Regulation Israel Absence of adequate legislation and regulation Establish legal frameworks based on comparative law

14 Legislation and Regulation Required steps Determine provisions for semi and full level of automation Encourage R&D and innovation

15 Legislation and Regulation Semi Autonomous Can be operated on public roads if vehicle meets regulatory standards Fully Autonomous Subject to an exemption approval from the applicable regulatory body in order to be operated on public roads

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17 Legislation and Regulation Fully Autonomous Corporate Requirements Manufacturer shall obtain an instrument of insurance, surety bond, or proof of self-insurance Certification that the vehicle s model year meets regulatory standards (not the specific vehicle) Certification that the autonomous technology was tested on public roads

18 Legislation and Regulation Fully Autonomous Road Conditions Suitable weather conditions Defined geographic location Low traffic Limited intersections and traffic lights

19 Legislation and Regulation Fully Autonomous System Requirements Driver seated at the driver s seat and ready to take control System must inform the driver once the automation has malfunctioned Transition from self-driving mode to driver control is done at a press of a button Vehicle must be able to come to a full stop in case that driver is unable to regain control Installation and operation of technologies does not conflict with required safety features System must record information in the event of a crash or loss of vehicle control (black box)

20 Legislation and Regulation Fully Autonomous Driver Requirements Only employees, contractors or other certified persons allowed to supervise the vehicle Subject to drivers passage of training course approved by regulatory body Special license program or permit for drivers Certification of drivers completion of training course and passage of test by manufacturers

21 Legislation and Regulation Fully Autonomous In a Closed Environment California Pilot: Limited to public roads within privately owned property No faster than 35 mph ( 55 kmph) Must obtain insurance of $5M Certification by manufacturer that the vehicle was tested in simulation and is safe to operate on public roads

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23 Legislation and Regulation Encourage R&D and Innovation Ease process for vehicle import for R&D purposes Reduce customs rate (currently at 83%) Facilitate framework for testing vehicles on public roads

24 IP Protection Non-Compete Arrangement Industry vs. University

25 Q&A

26 Thank you!