The latest twist in the Yahoo! case arrived today when the 9th Circuit overruled a district court decision which had held that Yahoo! could file a declaratory judgement action in the US to block domestic enforcement of a French court's judgment that Yahoo! had violated French law against Nazi propaganda. The 9th Circuit disagreed, holding that US courts lack jurisdiction against the French parties to this case, until and unless they subject themselves to this suit either by presence or by themselves suing to enforce the French judgment.
At first glance, the primary import of this pretty reasonable-looking decision, besides simplifying teaching the case, is to give the French parties more control of the forum if they ever seek to litigate against Yahoo! in the US.
