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PUBLISHER'S LETTER
Publisher & Editor-in-Chief
Leo Simpson, B.Bus., FAICD
Production Manager
Greg Swain, B.Sc.(Hons.)
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Julian Edgar, Dip.T.(Sec.), B.Ed
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Philip Watson, MIREE, VK2ZPW
Bob Young
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2 Silicon Chip
Millennium bug could
lead to huge legal bills
The saga of the Millennium bug, otherwise
known as the Y2K phenomenon, continues to
develop. For those that have not been awake
for the last two years, the Millennium bug
refers to the problem of computer code which
describes the year by the last two digits, as in
“98” for 1998. When 2000 arrives, computer
code that still uses this practice will be unable
to distinguish between 1900 and 2000 and so
the computer will inevitably crash, planes
will fall out of the sky, electricity distribution will stop and so on. At least,
that’s what the pundits are forecasting.
At the present time, there is vast rewriting of old programs in government
and large organisations like banks and insurance companies. Small business organisations, on the other hand, seem to be taking a “She’ll be right”
attitude. Well, they have had plenty of warning to check all their systems
and make sure that everything works when the year clicks over at the end
of 1999. Even at SILICON CHIP we have had to bite the bullet and update our
accounting software which was not Year-2000 compatible.
All manufacturing and importing businesses should also ensure that their
suppliers won’t be affected by the bug but that could be a tall order where
the supplier is overseas.
Apparently though, this same Y2K bug can be a problem in equipment
which has embedded microprocessors. This applies to all sorts of equipment
ranging from medical equipment in hospitals, security and fire protection
equipment, manufacturing equipment and even things like chart recorders
and some printers. In some situations, this could be really crucial to the
functioning of the organisation and could cost a huge amount to rectify if
discovered at the last moment.
Mind you, it beats me how equipment (and software) with this defect
was sold in the first place. Any company or organisation buying plant and
equipment expects it to function for many years without any need for major modifications. If it falls over in the year 2000 it occurs to me that many
companies supplying this equipment could be liable to very expensive
legal action. After all, all goods sold in Australia are supposed to be of
“merchantable quality” which is legalese for having no significant defects.
Something that will fail to operate at the end of 1999 clearly does have a
defect. Lawyers will have a field day.
So if your company or organisation hasn’t checked out its equipment with
“embedded microprocessors”, then you had better get them on the job. Even
company directors are in the firing line on this one. If you are a director and
your company suffers big losses because of a problem with the Y2K bug in
its equipment, you will be liable to be sued by shareholders.
And if you are a supplier of this “defective” equipment, heaven help
you. There is any number of legal statutes that lawyers will be able to use
- contract law, the Trade Practices Act, negligence - you name it. At the
very least, you need to inform all your customers, past and present, that
the product they purchased from you or your company will fail to operate
after 31st December, 1999.
Leo Simpson
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