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With the ever-increasing frequency of business being conducted over the Internet, the events giving rise to the potential extraterritorial application of law also have increased, drawing attention to an area of law that is anything but clearly delineated. The increased likelihood of law being applied extraterritorially means that businesses should now seriously consider where their Internet business is directed, who it is likely to be reaching and be prepared with at least some minimal knowledge regarding the laws of such jurisdictions.
Governing Rules
The rules governing the extraterritorial application of law fall within the concept of state sovereignty and whether a state has 'jurisdiction to prescribe' laws. (Note: This article does not attempt to distinguish between criminal and civil matters as there does not appear to be a clear distinction between the two in the Internet case context, although there is some authority for the idea that a court should take a more strict approach, looking for a clear statement of intent to have the law applied extraterritorially in the criminal context. See Restat 3d of the Foreign Relations Law of the U.S., '403 Comment f.)
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