My current location: Los Angeles, CA | Change location
Featured Attorneys
(562) 435-1426

Cyber Squabbles: Where Do You Sue?


 
EXAMPLES

A Pennsylvania court was able to obtain personal jurisdiction over a California Internet service provider that had 3,000 Pennsylvania subscribers. The act of processing the Pennsylvania applications and assigning passwords was sufficient to demonstrate the minimum contacts needed for personal jurisdiction. Zippo Mfg. Co. v. Zippo Dot Com, Inc., 952 F. Supp. 1119 (W.D. Pa 1997).

A Texas court gained personal jurisdiction over an out-of-state online gambling enterprise because the gambling operation entered into contracts with Texas residents to play online gambling games, sent emails to the Texas residents, and sent winnings to Texas residents. Thompson v. Handa-Lopez, Inc., 998 F. Supp. 738 (W.D. Tex. 1998).

The concept of "minimum contacts" can get tricky when it involves the Internet. Courts. Legal scholars are of the opinion that it is unfair to make every website owner subject to personal jurisdiction in every state simply because the site is viewable there. Similarly, sites that merely post information without making sales, called "passive sites," are unlikely to incur personal jurisdiction except in the state where their owner resides or does other business.

 
Example

A Minnesota website did not sell its nutrition products directly over the Web, but instead directed consumers to email the company's distributors. When a Texas company sued in Texas for patent infringement, the site was considered passive, with insufficient contacts to Texas to give the court personal jurisdiction over the defendant.

Copyright 2007 Nolo

Featured Attorneys
Dynamic Advocates providing optimum service in the most cost-effective manner.
(818) 243-5200
Providing Exceptional Representation for Businesses. Call Today to Speak with Our Attorneys. 1-888-WHGCLaw (944-2529)
1-888-WHGCLaw
Business and Corporate Law. Reasonable Rates. The Next Best Thing to Having Your Own Corporate Counsel. Call Now,
(310) 203-2249
More Sponsored Services
Incorporate Online:
LLCs, Corporations, Corporate Dissolutions, Aged Shelf Corporations. We will beat any competitor's price on Registered Agent or Incorporation services!
Form a Corporation
Legal Ace.com has the turn key online system to make starting a corporation easy and affordable.
Incorporate Online - Legalzoom:
Form a corporation or LLC quickly and easily. From LegalZoom, the #1 legal document service.
Incorporate/Form LLC Online:
- Order LLCs or Corporation, Registered Agent, Trademark, or Dissolution Service or buy Corporate Kits & Seals. One stop shopping!