The impact of the internet use in traditional law matters such as commerce, contracts, taxes, criminal law, etc., has required the adaptation of these fields. These changes have had effects both within and outside of territorial borders. One of the first legal aspects that should be resolved in order to sue for damages is to find rules for establishing jurisdiction when the defamation is made across boundaries by the internet. Defamation disputes have increased, and will continue to increase due to the internet being able to deliver rapidly defamatory publications across boundaries.

The author in this essay will draw a general background of jurisdictional issues in the cyberspace age regarding to the American common law approach. At the same time, an attempt will be made in this essay to present the topic in the
light of Victorian law through the analysis of the case of Gutnick v Dow Jones, where the High Court accepted that the Victorian courts have jurisdiction over alleged defamatory cases that occur on the internet. The Australian High held that even though the defendant is an United States company, the case should be hear in Victoria Courts because the alleged cyber-publication was downloaded in Victoria and the action brought to the courts seeks recover damages suffered by a Victorian resident within the forum.