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FRENCH YAHOO JUDGMENT (RELATED LITIGATION) (fwd)



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Last week, Yahoo sued its insurance company in a California state court, 
claiming that the insurer told Yahoo in February of 2001 that its $5 
million policy covered the defense of the action in Paris--but not Yahoo's 
federal declaratory relief suit in San Jose, CA. Yahoo v. Gulf Underwriters 
Insurance Co. (CV808117, May 2002). Yahoo's lawyer said that the French 
court's order had "disastrous consequences" for the Internet industry as a 
whole, and had to be countered in the United States. Thus, "[t]he French 
court's order was not technically possible; [and] Yahoo could not prevent 
access to certain content on its U.S. site by French citizens."

I believe that the outcome could impact Yahoo's continuing willingness to 
"defend" the case (initial filing in Paris), via it's responsive 
declaratory relief action filed last year in the US (California). OTOH, 
Yahoo should get industry support, should its insurer win the coverage 
suit, because this case is "huge" in terms of its potential for attracting 
significant national controls on the Internet. For further details, see 
today's news story at 
<http://www.law.com/cgi-bin/nwlink.cgi?ACG=ZZZGJXZXT1D>. 


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