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Jurisdiction Over Cross-Border Wrongs On The Internet

Published online by Cambridge University Press:  17 January 2008

Abstract

The internet presents challenges for private international law. One challenge relates to jurisdiction, which is traditionally based on territory. Transactions on the internet span many borders. When cross-border wrongs are committed they may lead to transnational litigation. This article examines the circumstances in which a court can exercise jurisdiction over a foreign defendant alleged to have committed a civil wrong over the internet. Section I examines the background to jurisdiction and the internet and sets the scope of the topic. Section n gives a brief summary of the internet and its applications. Section HI examines jurisdictional rules in civil wrongs cases.The focus is on two sets of rules commonly applied around the globe: the service abroad provisions and the special jurisdiction provisions. Section IV aims to apply those jurisdictional rules to cases of wrongs committed on the internet. It advances general principles, applicable in cases of cross-border wrongs committed on the internet, relating to the place where a wrong is committed and the place where damage is suffered. Defamation has its own peculiarities and is discussed separately. The issue of whether a court can grant an injunction against a foreign defendant in respect of foreign conduct is explored. The article concludes (in Section V) that existing jurisdictional rules need not be amended in light of the internet, and offers general statements about how jurisdictional rules apply to wrongs committed on the internet.

Type
Research Article
Copyright
Copyright © British Institute of International and Comparative Law 2005

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206 Though the court must apply that foreign law as the lex loci protectionis.Google Scholar

207 Torremans above n 205 at 242.Google Scholar

208 A Briggs above n 16 at 50.Google Scholar

209 eg an Australian court has jurisdiction in a case of spam email if there is an ‘Australian link’ (as defined in Spam Act 2003 (Cth) s 7), regardless of the place of commission of the contravention (s 14).Google Scholar

210 eg Alteen v Informix Corp [1998] 164 Nfld&PEIR 301 (NfldSC); Maritz Inc v CyberGold Inc 947 F Supp 1328, 1331 (EDMo 1996); Playboy Enterprises Inc v Chuckleberry Publishing Inc 939 F Supp 1032, 1039 (SDNY 1996); Cody v Ward 954 F Supp 43 (DConn 1997).Google Scholar

211 It would also apply in determining the place where the damage was suffered for the purposes of the draft Hague Convention (2001 version) Art 10(l)(b).Google Scholar

212 eg place where damage ‘is suffered’, ‘is sustained’, ‘occurs‘, ‘is caused‘, or ‘results’.Google Scholar

213 Reed, C above n 47 [7.1.3.5].Google Scholar

214 eg Challenor v Douglas [1983] 2 NSWLR 405, 408–11; Flaherty v Girgis (1985) 4 NSWLR 248, 266–7.Google Scholar

215 Shevill above n 134 [27]-[33].Google Scholar

216 Art 10 of the draft Hague Convention (2001 version) contemplates this.Google Scholar

217 Vick, DW and Macpherson, LAnglicizing defamation law in the European Union’ (1996) 36 Virginia J Intl L 933.Google Scholar

218 Castellblanch SA v Louis Roederer SA, Cass civ lère, 9 décembre 2003, pourvoi n° 0 1 -03.225.Google Scholar

219 GTE New Media Services Inc v Bellsouth Corp 199 F 3d 1343, 1349 (DC Cir 2000).Google Scholar

220 Dumez (above n 150) 80 [20]–[22].Google Scholar

221 Hasbro Inc v Clue Computing Inc 994 F Supp 34, 43 (D Mass 1997); Ford Motor Co v Great Domains Inc 141 F Supp 2d 763, 771 (EDMich 2001).Google Scholar

222 eg misleading or deceptive conduct in Trade Practices Act 1974 (Cth) s 52: Hunter Grain Pty Ltd v Hyundai Merchant Marine Co Ltd (1993) 117 ALR 507, 518-20 (FCA).Google Scholar

223 Australian Competition and Consumer Commission v Chen [2002] FCA 1248 [4]-[5].Google Scholar

224 Australian Competition and Consumer Commission v Chen (2003) 201 ALR 40; [2003] FCA 897 [46]–[61].Google Scholar

225 Delta, GB and Matsuura, JHLaw of the Internet (Looseleaf 2nd ednAspen Law & Business New York 2003) §3.05 urges defendants to incorporate an internet business separately from the rest of the business operation in order to shield assets from worldwide liability.Google Scholar

226 The draft Hague Convention, in so far as it aims to deal with reciprocal recognition and enforcement of judgments, would be a step forward.Google Scholar

227 Svantesson, DJurisdictional issues in cyberspace: At the cross-roads—The proposed Hague Convention and the future of internet defamation’ (2002) 18 Computer L & Security Report 191, 195.Google Scholar

228 Shevill above n 134 [24]–[33].Google Scholar

229 The effect of this limitation may be more apparent than real: Vick, DW and Macpherson, LAnglicizing defamation law in the European Union’ (1996) 36 Virginia J Intl L 933.Google Scholar

230 A Reed above n 163 at 98.Google Scholar

231 eg Australia.Google Scholar

232 Gutnick above n 38 at 601 [28].Google Scholar

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234 Cf Landgericht Miinchen I, Urteil vom 17 Oktober 1996, Az: HKO 12190/96, where a German Court assumed jurisdiction because world-wide accessibility of a defamatory statement on the internet meant that the injurious act was committed also in Germany.Google Scholar

235 Cf Bochan above n 26.Google Scholar

236 Gutnick above n 38 600-1 [26]-[27].Google Scholar

237 Cf Briggs, AThe Duke of Brunswick and defamation by internet’ (2003) 119 LQR 210.Google Scholar

238 Pullman v Hill [1891] 1 QB 524, 527; Hebditch v Mcllwaine [1894] 2 QB 54, 61; Bata v Bata [1948] WN 366, 367 (CA).Google Scholar

239 Bata above n 238 at 367.Google Scholar

240 Duke of Brunswick v Harmer (1849) 14 QB 185, 189; 117 ER 75, 77.Google Scholar

241 Berezovsky (above n 109).Google Scholar

242 ibid 1012, 1018, 1026.

243 ibid 1023–4.

244 ibid 1013, 1017.

245 Gutnick (above n 38).Google Scholar

246 ibid 608 [48], 611-12 [65], 642 [163], 654[202].

247 ibid 607 [46]-[47], 610 [56], 622 [102].

248 ibid 606 [44], 621 [100], 652-3 [198]-[199].

249 ibid 608 [48].

250 ibid 595 [6].

251 ibid 606 [44].

252 Attorney-General for England and Wales v Tomlinson [1999] 3 NZLR 722 [21]–[24] (NZHC).Google Scholar

253 A New Zealand Court enjoined New Zealand defendants from using a particular domain name in UK and Europe, regardless of the practical difficulty of blocking access to the website by users in those territories: Containerlift Services v Maxwell Rotors Limited (No 2) (2004) 58 IPR 667 [14]–[15], [17], [22] (NZHC).Google Scholar

254 Re Burlands Trade Mark (1889) 41 ChD 542.Google Scholar

255 eg CPR r 6.20(2).Google Scholar

256 Article 5(3): ‘place where the harmful event…may occur.’ This appears in the Judgments Regulation, not in the Conventions, though the Conventions have been construed as allowing courts to enjoin conduct.Google Scholar

257 British Telecommunications v One in a Million Ltd [1999] 1 WLR 903 (CA); Oggi Advertising Ltd v McKenzie [1999] 1 NZLR 631 (NZHC); New Zealand Post (above n 199); Bell Actimedia Inc v Puzo (1999) 88 ACWS (3d) 1073 (FedCtTDiv) [50].Google Scholar

258 eg Dunlop Rubber Co Ltd v Dunlop [1921] AC 367 (HL); Tozier v Hawkins (1885) 15 QBD 680.Google Scholar

259 The jurisdiction to grant such injunction stems from the ‘damage’ limb of CPR r 6.20(8) or Judgments Regulation Art 5(3) by necessary implication.Google Scholar

260 eg New Zealand Post above n 199, where the Court ordered the defendant to delete the words ‘nz post’ from any website, and did not feel constrained to limit the injunction to the territory of New Zealand.Google Scholar

261 cf Mecklermedia above n 149 at 55.Google Scholar

262 But it is not altogether impossible: Speechworks Ltd v Speechworks International Inc [2000] ScotCS 200 [27]; Yahoo! above n 42. One method of excluding conduct from a particular territory is by the website's server determining the location of the client through his IP address, and blocking access to the website if the client is in the territory. Of course, this is not foolproof as it is possible to alter an IP address to show location in a different territory.Google Scholar

263 ‘Morocco Bound’ Syndicate Ltd v Harris [1895] 1 Ch 534.Google Scholar

264 As acknowledged in Chen above n 224 [46]–[61]. Generally at common law an injunction is not enforceable outside the jurisdiction: Marshall v Marshall (1888) 38 Ch D 330 (CA). Perhaps it is time to reform this rule: Pro Swing Inc v ELTA Golf Inc (2004) 71 OR (3d) 566, 570 [9] (OntCA on appeal to SCC). cf the Judgments Regulation, under which any order of a Member State's court, including an injunction, is enforceable in all other Member States.Google Scholar

265 Macquarie Bank v Berg (1999) Aust Defam Rep 53, 035; [1999] NSWSC 526.Google Scholar

266 ibid [11]-[15].

267 Garnett, RAre foreign internet infringers beyond the reach of the law?’ (2000) 23 U New South Wales LJ 105, 123Google Scholar; Kohl, UDefamation on the internet—a duty-free zone after all? Macquarie Bank v Berg’ (2000) 22 Sydney L Rev 119.Google Scholar

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