There were two recent decisions released by U.S. Appellate Courts regarding jurisdiction online. In the first decision, the U.S. Court of Appeals (4th Cir)
in ALS Scan v. Digital Service Consultants
held that the District Court in Maryland could not exercise personal jurisdiction over an ISP based in Georgia in a copyright infringement case on the sole basis that the ISP provided web hosting services to the alleged infringers who had posted copyrighted pictures on their website.
In the second case of Gorman v. Ameritrade
, the U.S. Court of Appeals (D.C. Cir)
employed a active/passive test and came to the conclusion that the defendant, Ameritrade, could be subject to personal jurisdiction of the Court due to the active nature of its website in the territory covered by the Court's jurisdiction.
Both of these cases have significant consequences for Canadian companies doing business online in that the legal principles articulated in these cases apply alike both to out of State and non-U.S. companies such as Canadian companies with an online presence.
To view a detailed discussion of the above cases prepared by DWW associate, Javad Heydary, visit: http://dww.local/articles/online-jurisdiction.htm
For a copy of the court's decision in Gorman, visit:
For a copy of the court's decision in ALS, visit:
Disclaimer: This Newsletter is intended to provide readers with general information on legal developments in the areas of e-commerce, information technology and intellectual property. It is not intended to be a complete statement of the law, nor is it intended to provide legal advice. No person should act or rely upon the information contained in this newsletter without seeking legal advice.
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