INTRODUCTION

800. Ownership, moral hazard, and end-of-life of the product – An essential characteristic of use-oriented and result-oriented PSS (and contrary to product-oriented PSS where ownership is still transferred) is that the PSS supplier wishes to retain the ownership of the product. The first section of this chapter (section 7.2) therefore deals with the question of how the PSS supplier can protect its right of ownership of the product. The second section of this chapter (section 7.3) discusses moral hazard, i.e. the risk that PSS user will treat the product less carefully then if he were the owner of the product. Here, particular attention is given to how this risk can be (contractually) mitigated. Finally, the third section (section 7.4) deals with the end-of-life stage of the product. Here, the responsibilities of the PSS supplier regarding collection, repurposing, and/or disposal of the product in use-oriented and resultoriented PSS are discussed compared to the responsibilities of the PSS supplier in product-oriented PSS. Additionally, this section also analyses how circular guarantees can be incorporated into the PSS contract.