ABSTRACT
Canada had to demonstrate greater toughness in countering complicity in US extraterritorial measures by US controlled Canadian subsidiaries. National intellectual property law requirements have been—and are—premised on the territorial principle: the force of law runs with the territory. Canada had to demonstrate greater toughness in countering complicity in US extraterritorial measures by US controlled Canadian subsidiaries. Escalating foreign retaliation against the extraterritorial excesses mandated by the "effects" test in Alcoa may have prompted American judicial authorities to admit a jurisdictional "rule of reason" that recognizes considerations of international comity. The bilateral achievement of the Free Trade Agreement and the multilateral efforts under North American Free Trade Agreement and the General Agreement on Tariffs and Trade all evidence a growing appreciation that the unilateral extraterritorial application of domestic laws yields ultimately unsatisfactory answers for domestic problems and objectives. International agreements carry with them the element of consent that removes the extraterritorial objection.
