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[H2] European Product Liability Directive Resource Center
[H2] European Product Liability Directive Resource Center
Key impacts and risk-mitigation strategies for the EU’s new Product Liability DirectiveLearn more
[H2] Global perspectives on data centers and digital infrastructure
[H2] Global perspectives on data centers and digital infrastructure
Legal and operational insight for developing, financing, and operating data centers worldwideLearn more
[H2] Middle East Conflict Resource Center
[H2] Middle East Conflict Resource Center
Legal and regulatory insight on the business impacts of developments in the Middle East.Learn more
[H2] Trump tariffs: Navigating international trade
[H2] Trump tariffs: Navigating international trade
Insights to help businesses manage risk and compliance under evolving trade policiesLearn more
[H2] UK Online Safety Act 2023
[H2] UK Online Safety Act 2023
Key compliance considerations for online service providers under the UK Online Safety ActLearn more
[H2] European Product Liability Directive Resource Center
[H2] European Product Liability Directive Resource Center
Key impacts and risk-mitigation strategies for the EU’s new Product Liability DirectiveLearn more
[H2] Global perspectives on data centers and digital infrastructure
[H2] Global perspectives on data centers and digital infrastructure
Legal and operational insight for developing, financing, and operating data centers worldwideLearn more
[H2] Middle East Conflict Resource Center
[H2] Middle East Conflict Resource Center
Legal and regulatory insight on the business impacts of developments in the Middle East.Learn more
[H2] Trump tariffs: Navigating international trade
[H2] Trump tariffs: Navigating international trade
Insights to help businesses manage risk and compliance under evolving trade policiesLearn more
[H2] UK Online Safety Act 2023
[H2] UK Online Safety Act 2023
Key compliance considerations for online service providers under the UK Online Safety ActLearn more1 / 5
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We are committed to making a tangible impact through pro bono advocacy, sustainability initiatives, and programs that empower people and strengthen the communities in which we live and work. View our commitments
[H2] Insights and news
[H2] The FTC's non-compete campaign enters a new phase
With rulemaking stalled, the Federal Trade Commission is turning to enforcement actions to challenge non-compete agreements
[H2] California’s new food date labeling requirements: Is your company ready?
AB 660 bans ‘sell by’ dates and mandates standardized labeling on all packaged food in the state
[H2] Fund finance: A fresh perspective and the year ahead
By continuing to invest in training and talent, organizations strengthen their ability to operate at scale1 / 3The FTC's non-compete campaign enters a new phaseCalifornia’s new food date labeling requirements: Is your company ready? (11 May 2026) Fund finance: A fresh perspective and the year ahead (28 April 2026)

What is the new EU Product Liability Directive?
The European Union’s new Product Liability Directive (PLD) (Directive (EU) 2024/2853), set to take effect on December 9, 2026, represents a major overhaul of product liability law across the EU. It is designed to address the realities of modern technology, digital products, and complex global supply chains. The Directive fundamentally changes the risk landscape for companies placing products – whether physical or digital – on the EU market. Here’s what the Directive might mean for your business and how our team can assist you with preparing to navigate the changes it will bring.
Who is impacted?
Product manufacturers
Component manufacturers
Software developers (including AI and firmware providers)
Importers
Authorized representatives
Distributors
Any business placing digital products, software, or AI systems on the EU market
Any party that substantially modifies a product after it is placed on the market (including through software updates or AI-driven changes)
If your company is involved in the development, supply, or distribution of products, this Directive will directly impact your risk profile and compliance obligations.Expanded definition of “product”
One of the most significant changes is the explicit inclusion of software, AI systems, firmware, digital manufacturing files, and certain digital services within the definition of a “product.” This means:
Standalone software, embedded software, and software-as-a-service (SaaS) are “products” subject to strict liability.
Integrated and interconnected digital services, such as health monitoring services that rely on physical sensors, are also covered.
Updates, upgrades, and AI-driven changes made after a product is placed on the market can trigger liability.
New disclosure requirements and risks to attorney communications
The Directive expands pretrial disclosure obligations across member states, introducing a process more akin to U.S.-style discovery. However, the scope of legal professional privilege in the EU is much narrower than in the United States, with many member states excluding in-house counsel communications from protection and varying rules on privilege for non-EU lawyers (such as those in the United States). This means that legal advice and internal communications typically protected in the United States may be subject to disclosure in EU proceedings, potentially triggering privilege waiver arguments in U.S. litigation. The lack of harmonization in privilege rules across the EU complicates cross-border litigation and may influence where claimants choose to file suit. Companies operating in the EU should begin implementing risk mitigation procedures now to help protect privileged communications.
New rebuttable presumptions: Lowering the bar for claimants
The Directive introduces several rebuttable presumptions that significantly lower the evidentiary burden for claimants:
Presumption of defectiveness: If a manufacturer fails to disclose relevant evidence, if the product does not comply with mandatory safety requirements (including cybersecurity), or if there is an “obvious malfunction,” defectiveness is presumed.
Presumption of causation: If a product is found defective and the damage is of a kind typically caused by such a defect, causation is presumed.
Presumption of defect and/or causation: Where a claimant faces “excessive difficulties” in proving defectiveness or causation – especially due to technical or scientific complexity – courts can presume defectiveness and/or causation if the claimant can show that it is likely the product was defective or that there is a causal link.
These changes are expected to increase both the frequency and success rate of product liability claims in the EU, especially for complex products and AI systems.
How our firm can assist: Strategic advocacy and risk mitigation
Strategic advocacy and engagement at the EU and member state level: Our firm is equipped to guide your company through the evolving PLD landscape by providing targeted advocacy and representation before the European Commission, industry groups, and national authorities. With ambiguous concepts – such as the “excessive difficulties” and “technical or scientific complexity” necessary to trigger presumptions of defect or causation – likely to be interpreted differently across member states, we can help you proactively engage in the legislative process, shape the interpretation of key provisions, and ensure your interests are represented as member states implement the PLD into local law.
Tailored risk assessment: We offer a detailed, business-specific risk assessment to determine how the new PLD will impact your operations. This includes reviewing your current policies, procedures, and product lines to identify vulnerabilities and compliance gaps. Our approach is tailored to your industry, product portfolio, and operational footprint, ensuring that the assessment addresses the unique risks your business faces under the new Directive.
Identifying high-risk areas: Our team will systematically identify products, digital features, and supply chain elements that may present heightened risk under the PLD. This includes a focus on products incorporating AI, software, or other digital components, as well as risks related to data destruction or corruption – areas specifically covered by the Directive. By mapping these high-risk areas, we help you prioritize mitigation efforts and allocate resources where they are most needed.
Actionable, business-specific recommendations: Following our holistic review and risk mapping, we will deliver clear, prioritized recommendations for immediate and long-term actions. These are tailored to your business and product portfolio, providing a practical, actionable roadmap to reduce liability exposure under the PLD.
Evaluation of product design, labeling, and documentation: We will review your product design, labeling, and related documentation to assess product liability under the new PLD. This includes ensuring compliance with the EU Medical Devices Regulation, In Vitro Diagnostic Regulation, the AI Act, GDPR, NIS2, and other relevant laws. Our team will map your internal practices for logging product performance, monitoring adverse events, and responding to incidents – critical elements of a robust litigation defense.For AI-enabled products, we will analyze the adequacy of safety mitigations, literacy programs, disclaimers, and human-in-the-loop mechanisms, as well as the explainability and transparency of AI outputs. We will assess risks associated with AI-generated outputs, such as clinical recommendations or diagnostics, and review the potential for foreseeable misuse or overreliance on AI tools.
Supply chain risk mapping and contractual safeguards: We provide comprehensive supply chain risk mapping and contractual review services to identify vulnerabilities and compliance gaps. We will assess the compliance of all relevant partners to ensure they do not introduce additional product liability risks, including from cybersecurity vulnerabilities, and review and update contracts to ensure robust risk allocation, indemnification, and guarantee provisions.
Internal training programs: We offer tailored training for your legal, compliance, product, and technical teams, focusing on the PLD’s provisions, best practices, and documentation standards. Our training programs are designed to equip your teams with the knowledge and tools needed to implement effective risk mitigation strategies and defend against product liability claims.
Executive briefings and ongoing legal updates: Our team offers in-depth workshops and executive briefings for your leadership and key stakeholders, delivering a comprehensive understanding of the PLD and its implications for your business. As member states implement the PLD and new legal developments arise, we will keep you informed with timely updates and strategic guidance, ensuring your business remains ahead of regulatory changes and emerging risks.
Contact us to learn how we can help your business prepare for the new era of EU product liability.Show moreVisit our EU PLD implementation tracker
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Meet the team

Data centers power today’s digital economy, and their development, financing, and operation demand a legal partner that understands the entire life cycle of this unique asset class. Reed Smith’s multi-disciplinary, global data center team supports operators, investors, developers, suppliers, and end users from site selection, acquisition, and permitting through construction, energizing, financing, ventures, leasing, commercialization, and operations, to compliance, dispute resolution, and dispositions.
We bring deep sector experience across multiple disciplines, including real estate, construction, private equity, funds, M&A, energy, data protection, technology, telecommunications, employment, ESG, insurance, and disputes. With on-the-ground capability across the United States, Europe, the Middle East, and Asia, we navigate local requirements and cross-border complexity to mitigate risk and maximize value for data center projects.
Whether delivering hyperscale campuses, modular builds, colocation portfolios, or platform investments, we align legal strategy with commercial and sustainability goals to help clients capitalize, develop, service, finance, operate, and lease resilient, future-ready data centers and related infrastructure.
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Meet Benjamin
[H2] Benjamin H. Patton
PartnerHoustonSeasoned real estate attorney advising institutional investors, owners, and developers on complex transactions, joint ventures, and large-scale projectsMeet John
[H2] John F. Simonis
PartnerOrange CountyMeet Shawn
[H2] Shawn Tan
CounselSingaporeAdvises on EU and French regulatory frameworks, with extensive experience in energy, digital infrastructure, e-commerce, sustainability and product compliance.Meet Nicolas
[H2] Nicolas Walker
PartnerParisMeet the team

Recent developments across the Middle East are creating significant legal, regulatory, and commercial implications for businesses operating in or connected to the region. Rapidly evolving sanctions regimes, disruption to trade and transportation, insurance considerations, and broader geopolitical risks require close monitoring and timely legal insight.
Our clients can turn to us for answers. Reed Smith’s Middle East Conflict Resource Center brings together perspectives from lawyers across our global platform to help clients navigate these developments. Our teams are advising across sectors including insurance, aviation, shipping, international trade, sanctions, and supply chains.
This page will be updated regularly as the situation evolves. If you would like to discuss potential impacts on your business, please contact any member of the Reed Smith team.
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Meet the team