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Lee A. Bygrave (red.) YULEX 2002 - Universitetet i Oslo

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20 Emily M Weitzenböck<br />

would be disputes regarding the existence of the VE Interchange Agreement<br />

or the contract with its supplier or customer, and on which the claim is<br />

based. As Cheshire and North [1999] observe,<br />

“[c]ourts would be too easily deprived of jurisdiction if an allegation by<br />

the defendant that no contract existed was sufficient to prevent the dispute<br />

falling within Article 5(1). The court seised of the matter may end up<br />

deciding that no contract exists but this is neither here nor there. All that<br />

matters is that this court is satisfied that the requirements of Article 5(1)<br />

are satisfied, including that it is a matter relating to a contract.”<br />

Another issue that arises is where is “the place of performance of the obligation”<br />

in the case of contracts involving VEs. The Jurisdiction Regulation<br />

clarifies the meaning of place of performance by distinguishing between contracts<br />

for the sale of goods and contracts for the provision of services in subparagraph<br />

(b) of Article 5(1). In the case of sale of goods, the place of performance<br />

of the obligation is the place where, under the contract, the goods<br />

were delive<strong>red</strong> or should have been delive<strong>red</strong>. In the case of services, it is the<br />

place where, under the contract, the services were provided or should have<br />

been provided. Article 5(1)(c) states further that if subparagraph (b) is not<br />

applicable, then subparagraph (a) would be.<br />

Though the distinction between goods and services in Article 5(1) is welcome,<br />

the Regulation contains no definition of either “goods” or “services”<br />

and thus one may question under which category digitised products would<br />

fall. One should here examine what rights accompany the transfer of the<br />

digital product. Where the user is only given the right to download the work<br />

onto a physical medium (eg, a CD or DVD) but has no right to make further<br />

copies of the work, this contract has the characteristic of a licence contract<br />

and not sale [Østergaard, 2000]. Thus, where the contract is for the provision<br />

of a digital product via the Internet, the place of performance is presumably<br />

where the product is downloaded (“provided”).<br />

It should be noted that the Brussels and Lugano Conventions do not have<br />

the above-mentioned clarification of the place of performance as regards the<br />

sale of goods or the provision of services. These Conventions merely provide<br />

that in matters relating to contract, a person may be sued in the courts for the<br />

place of performance of the obligation in question. One would therefore have<br />

to determine what “the obligation in question” is. In De Bloos v Bouyer<br />

[1976], the ECJ held that Article 5(1) refers not to any obligation under the<br />

contract but to the contractual obligation forming the basis of the legal proceedings,<br />

the one which the contract imposes on the defendant, the nonperformance<br />

of which is relied upon by the claimant. However, in the case of

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