Ontario Court Enforces New York Judgment Regarding Sharing of Movies Online

In Disney Enterprises Inc et al v Click Enterprises Inc and Evans, [2006] OJ No 1308, the Ontario Superior Court was asked to enforce a judgment issued in New York against an Ontario resident corporation, Click Enterprises Inc (Click), for online copyright infringement. Click had operated an Ontario-based web site that provided tools and support for users interesting in downloading movies. An action was launched in the District Court for the Southern District of New York by several movie studios and a default judgment obtained when Click did not defend. The plaintiffs then brought then brought an action before the Ontario Superior Court to enforce the New York State judgment. The issue was whether the New York court had properly exercised jurisdiction over the defendants. Applying the test laid down by the Supreme Court of Canada in SOCAN v Canadian Ass'n of Internet Providers, 32 CPR (4th) 1, Justice Lax found that there was a real and substantial connection between Click and New York State and that Click had used the Internet to enter the US and carry out its commercial activities. The Court considered a number of factors, including that US-based companies were used to process payments made to the Click web site from US customers, that the majority of customer testimonials on the site were from US residents, and that the films being downloaded were mostly American films. Taken together, the factors indicated that the original action was properly brought in New York and was therefore properly enforceable in Ontario. For the full text of the decision, visit: http://www.canlii.org/on/cas/onsc/2006/2006onsc10745.html Summary by: James Kosa