Extraterritoriality refers to the application of a nation’s law to persons, conduct, or property outside its own territory. Customary international law allows nations to regulate extraterritorially on a number of different bases, including effects, nationality, and universal jurisdiction. Nations generally limit the extraterritorial application of their laws to a greater extent than customary international law requires. For example, the United States applies a presumption against extraterritoriality to federal law and sometimes imposes additional limitations as a matter of prescriptive comity. Some U.S. states have their own presumptions against extraterritoriality, which may differ from the federal presumption.
A Primer on Extraterritoriality
Extraterritoriality refers to the application of a state’s law beyond the state’s borders. Although the word “extraterritorial” often has negative connotations, international law permits a great deal of extraterritorial regulation. In a world where trade, information, crime, and lots of other things regularly cross borders, states often have an interest in regulating beyond the strict…
Continue ReadingFirst Circuit Argument Weighs Constitutionality of TVPA
Last month, the First Circuit (Judge Lara Montecalvo, presiding, with retired Justice Stephen Breyer and Senior Judge Sandra Lynch) heard oral argument in Boniface v. Viliena. Viliena, a Haitian national who has been a legal permanent resident of the United States since 2008, is challenging a $15.5 million jury award under the Torture Victim Protection…
Continue ReadingExtraterritoriality in Comparative Perspective
Extraterritoriality has been on the outs with the Roberts Court, which has curtailed the reach of U.S. trademark, human rights, securities, and racketeering laws via the presumption against extraterritoriality. But globally, extraterritoriality may be on the rise. Countries have flexed their extraterritorial muscles to address data privacy, human rights, competition law, tax base erosion, and…
Continue ReadingDistrict Court Applies Securities Fraud Provision to Foreign Transactions
Does § 10(b) of the Securities Exchange Act apply to securities on foreign exchanges? Generally, the answer is no. The Supreme Court held in Morrison v. National Australia Bank (2010) that § 10(b)—the Act’s principal antifraud provision—applies only to transactions on U.S. exchanges and to transactions in unlisted securities that occur in the United States….
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