The challenge of jurisdiction and the Internet has long been one of the most contentious online legal issues. Given that the Internet has little regard for conventional borders, the question of whose law applies, which court gets to apply it, and how it can be enforced is seemingly always a challenge.
Striking the right balance can be exceptionally difficult: if courts are unable to assert jurisdiction, the Internet becomes a proverbial “wild west” with no applicable law. Conversely, if every court asserts jurisdiction, the Internet becomes over-regulated with a myriad of potentially conflicting laws vying to govern online activities.
My weekly technology law column (Toronto Star version, homepage version) notes that in recent years, courts in many countries have adopted a reasonable balance where they are willing to assert jurisdiction over online activities or companies where there is a “real and substantial” connection, but they limit the scope of enforcing their rulings to their own jurisdiction. In other words, companies cannot disregard local laws where they operate there, but courts similarly should not disregard the prospect of conflicting rules between different countries.