Droid Statutes

The Droid Statutes were enacted around four thousand years prior to the battle of Yavin. It was a set of regulations regarding punishment of droids that had broken the law. They construed droids a property and not sentient entities, and often droid owner would be punished with fines, prisonment, or even life, while the droid would be memory-wiped or destroyed, depending on the narure of the crime

Some examples are:
 * appearing in public without a restraining bolt: memory-wipe; owner fined
 * petty theft: memory-wipe; owner fined
 * murder: destruction of droid; imprisonment of owner (5 years to life)
 * conspiracy: destruction of droid; imprisonment of owner (5 years to life)

Source

 * The New Essential Guide to Droids