On 2001-01-10 Yahoo announced that it would not appeal against the ruling in France. It decided to take the case before a United States District Court in San Jose, California, asking it to find that the French ordinance is not effective in the United States. Judge Jeremy Fogel found the decision returned by the tribunal de grande instance of Paris to be inconsistent with the First Amendment to the Constitution of the United States, relating to freedom of expression, and that consequently it is inapplicable in the United States.
The LICRA and the UEJF appealed the decision before the U.S. Court of Appeals (9th Circuit) for the State of California, who had the responsibility of determining whether France had jurisdiction. The Appeals Court accepted the case and, on August 23, 2004, reversed the earlier finding, arguing that the defendents had acted only with regard to transactions taking place in France as part of Yahoo!'s international business, and that this subjected Yahoo! to French juridiction:
There was one dissenting opinion, written by Judge Melvin Brunetti, who argued that "a defendant’s intentional targeting of his actions at the plaintiff in the forum state", which he viewed the French charges and fines as constituting, sufficed to give jurisdiction to the forum state, the United States, under the Supreme Court's "express aiming" precedent.
The case created a media response and sparked a backlash of controversy in the United States, where many saw it as the censoring of a United States publication by a foreign power. Although technically the decision only required Yahoo! to prevent the sale of Nazi objects to people in France, in practice technical limitations make it infeasible to track the geographical location of a customer on the web. The practical consequence was that Yahoo! was forced to monitor and remove any and all such items from its website, at considerable expense to itself, and render appropriate payment of fines to France.
On 2006-01-12, the United States Court of Appeals for the Ninth Circuit delivered a judgment reversing the judgment of the District Court and remanded the case with directions to dismiss the action. Judge William Fletcher noted that:
On 30 May 2006 the Supreme Court of the United States denied certiorari.
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