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"Established concepts are facing a new challenge in the broad scope of the Internet."
USE OF THE INTERNET - WHERE YOU CAN SUE OR BE SUED? In the vast majority of disputes which wind up in court, all parties either come from the same state or have agreed, in the contract or otherwise, which particular court should hear the case. Other disputes, of course, involve persons living in different states which have differing rules. A body of law has developed to determine where a person can sue or be sued based upon various factors. These established concepts are facing a new challenge in the broad scope of the Internet. A recent Federal Appeals decision on trademark infringement goes a long way to clarify the issue. The case is Bensusan Restaurant Corp. v. King d/b/a The Blue Note. In its opinion dated September 10, 1997, the Second Circuit Court of Appeals determined that the traditional tests do in fact apply to the Internet. The plaintiff, a New York corporation, was the creator of the successful Blue Note jazz club in New York City. The defendant has a small Missouri establishment catering primarily to students of the University of Missouri. The Court has found that use of the name, The Blue Note, on its Web page was not intended to solicit residents of New York, nor to compete with the New York club, and that there was no reasonable expectation of causing injury in New York, even though users of the Internet could access the Website in New York. Therefore the plaintiff could not bring the lawsuit in New York. This decision helps to clarify one of the more vexing problems created by the new technology and offers some degree of guidance as to what the rules are.
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