Citation: EDIAS Software Int'l v. BASIS Int'l Ltd., 947 F. Supp. 413 (D. Ariz. 1996).
The defendant, a New Mexico software company, sent e-mail messages to some of its customers, and posted a notice on its website and on a CompuServe forum stating that it had canceled its distribution agreement with the plaintiff. EDIAS sued, claiming that the e-mail, website, and CompuServe notices constituted defamation and tortious interference with contract (among other things).
Trial Court Decision
The court held that the defendant was subject to suit in Arizona for libel, defamation, tortious interference with contract, and Lanham Act violations. As the court stated, the defendant “should not be permitted to take advantage of modern technology through an Internet Web page and forum and simultaneously escape traditional notions of jurisdiction.”
The court found that the allegedly defamatory statements, which concerned the reasons BASIS discontinued its contract with an Arizona software company, “were directed at and caused harm in Arizona.”