Friday, March 25, 2011

NY Court of Appeals Rules on Internet-Related Jurisdiction

As reported in today's New York Law Journal, the New York Court of Appeals has ruled on a case in which a New York based publisher sought to hale out-of-state defendants into New York court based on the injuries suffered in New York as a result of the unauthorized down-load of copyrighted materials -- even though the suspect internet "down-loads" or other transaction activity took place as far away as Arizona and Oregon.

The case, Penguin Group (USA) Inc. v. American Buddha, No. 7, involved New York's long-arm statute and internet downloads of copyrighted material.

According to the Court, the fact that the internet is so pervasive distinguishes the case "from traditional commercial tort cases where courts have generally linked the injury to the place where sales or customers are lost."

In keeping with SDNY Local Counsel's commitment to monitor cases that may impact jurisdictional questions in state and federal Courts in New York, SDNY local counsel will keep you all updated on further developments ...