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This keeps well with International Shoe v. Washington: http://en.wikipedia.org/wiki/International_Shoe

Summary: Shoe had salesmen in Washington State. Shoe was not paying taxes. Washington State said taxes were due. Shoe said no way. Went to Supreme Court. Supreme Court of U.S. said Shoe owes taxes, Washington State had jurisdiction to sue and right to taxes because Shoe doing significant business in Washington State.

To me, it only makes sense. If a company wants to sue you, they have to sue you in your state. If you want to sue the company or someone else, then you have to sue in their state. The definition of there state is what can be contentious.

Accepted basic definitions are any state in which they do significant business. So, state of headquarters, state of incorporation, state of significant workforce, state of significant direct advertising, state of primary intended sales, state of primary hardware/servers. This can be a lot of states, but it means the company has at least some presence in each of those places.

On an International Scale, China, France, and Germany break these rules all the time in relation to Internet Companies. Often they sue in their own country and jurisdiction, even when it should not be directly applicable to the company at hand. The question is whether the goods are being marketed to their country or not and the level of inconvenience. This is one of the needs for an international court that handles international action and jurisdiction for interaction on the Internet.

... Right, going to stop now before I go deeper into this argument.

Good post and great food for thought.


Steven "PlayNoEvil" Davis

Please note that the US and states within the US do the same thing. The Internet gambling law is a clear example, but there is also the scenario where companies with online content have been sued for breaking obscenity laws in states where they do not operate.

Governments have used targeted marketing to show presence in a jurisdiction.

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