The World Wide Reach of the Internet: Can a Company Protect Itself From the Jurisdiction of Foreign Courts?

In a case significant to any business with an Internet presence, the High Court of Australia ruled in late 2002 that a US company was subject to the jurisdiction of the Australian courts when its Web site, which could be accessed in Australia, defamed an Australian businessman. Gutnik, an Australian businessman, filed suit in a Victoria, Australia court against Dow Jones & Co Inc, the owner of an online publication called Barron's Online, alleging that he had been defamed by certain assertions in a Barron's article published on Dow Jones's Web site. In setting out the factors needed for a proper assertion of jurisdiction, the Australian High Court based its decision on the generally recognized legal principle that the authority of a court to exercise jurisdiction over a nonresident is fair if the defendant has "availed" himself of the benefits of the state or country in which the court sits.