About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

38 U. Tol. L. Rev. 307 (2006-2007)
The Use of Jurisdictional Arbitrage to Support the Strategic Interest of the Firm

handle is hein.journals/utol38 and id is 321 raw text is: THE USE OF JURISDICTIONAL ARBITRAGE TO
SUPPORT THE STRATEGIC INTEREST OF THE FIRM
Robert Ware JII*
Editor's Note: This essay is being published posthumously. Yahoo!, Inc. v. La
Ligue Contre Le Racisme et L 'Antisemitisme, 169 F. Supp. 2d 1181 (N.D. Cal.
2001), which is used to highlight Dr. Ware's argument, was reversed and remanded
with instructions to dismiss without prejudice for lack of ripeness. Despite this
reversal, Dr. Ware simply used this case to suggest that Internet businesses should
be cognizant of the impact or lack of impact foreign law may have on their
business.
I. INTRODUCTION
T HIS essay examines the impact of jurisdictional conflicts on the
internationalization of firms with Internet-focused strategies in both the
physical and virtual environments. In addition, this essay presents and discusses
the case, Yahoo!, Inc. v. La Ligue Contre Le Racisme et L'Antisemitisme.' This
case qualitatively illustrates how the twin environments of the Internet and the
physical world affects firm strategy and behavior, which results in jurisdictional
arbitrage opportunities.
II. THE MINIMUM CONTACTS DOCTRINE
American courts use the minimum contacts doctrine to determine the
appropriate jurisdiction for cyberlaw cases involving websites by examining
whether the website owner purposefully availed itself of a host jurisdiction.2 The
origins of the minimum contacts doctrine are found in early American case law.3
For example, the Supreme Court initially discussed personal jurisdiction in
Pennoyer v. Neff and, over time, courts have developed the minimum contacts
* Assistant Professor of Marketing, Savannah State University. A.B. (1980) Harvard
University; S.M. (1985) MIT; Ph.D. (2002) University of South Carolina; and J.D. (2003)
University of Florida.
1. 169 F. Supp. 2d 1181 (N.D. Cal. 2001), rev'dper curiam (9th Cir. 2006) (determining that
the claim was not ripe, the Circuit Court reversed and remanded the case with instructions to
dismiss without prejudice).
2. See generally Int'l Shoe Co. v. Washington, 326 U.S. 310 (1945); Tuaza v. Susquehanna
Coal Co., 115 N.E. 915 (N.Y. 1917).
3. See Int'l Shoe, 326 U.S. at 310.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most