ABSTRACT

More than any other technology, the Internet facilitates cheap, fast, and difficult-to-detect multi-jurisdictional transactions. The first argument against territorial regulation of the Internet concerns regulatory leakage. This is an argument about the infeasibility of territorial regulation of the Internet. The problem of notice presents another apparent normative quagmire for Internet regulation. Many fear that content providers do not know where in the world their information goes, and thus do not have notice of the laws they might be violating. Consider a hypothetical Arkansas statute that bans Internet gambling and imposes very large criminal fines on Internet Access providers that facilitate transmission of Internet gambling services into the state. But harmonization is not a perfect solution, because it is sometimes hard to achieve and, more broadly, because it defeats the benefits of decentralized national lawmaking.