{"id":342336,"date":"2025-12-13T17:31:59","date_gmt":"2025-12-13T17:31:59","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/what-digital-sovereignty-how-a-canadian-court-is-forcing-a-french-company-to-break-french-law\/"},"modified":"2025-12-13T17:31:59","modified_gmt":"2025-12-13T17:31:59","slug":"what-digital-sovereignty-how-a-canadian-court-is-forcing-a-french-company-to-break-french-law","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=342336","title":{"rendered":"What digital sovereignty? How a Canadian Court is forcing a French company to break French law"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"post-body-8989751929945968748\">\n<p><iframe loading=\"lazy\" title=\"What digital sovereignty? How a Canadian Court is forcing a French company to break French law\" width=\"840\" height=\"473\" src=\"https:\/\/www.youtube.com\/embed\/L2Mk9z1nKzQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><iframe title=\"What digital sovereignty? How a Canadian Court is forcing a French company to break French law\" allowtransparency=\"true\" height=\"150\" width=\"100%\" style=\"border: none; min-width: min(100%, 430px);height:150px;\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/player-v2\/?i=drb72-19e1a3f-pb&amp;from=pb6admin&amp;share=1&amp;download=1&amp;rtl=0&amp;fonts=Arial&amp;skin=1&amp;font-color=auto&amp;logo_link=episode_page&amp;btn-skin=7\" loading=\"lazy\"><\/iframe><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">Just recently, I<br \/>\nheard about a <i>very<\/i> significant <a href=\"https:\/\/drive.google.com\/file\/d\/1QVwO9lPmxuDSQsGd9fHH3QN_ToXs2LQ8\/view?usp=drive_link\" target=\"_blank\">new decision from the Ontario Court ofJustice<\/a>, where a judge in Ottawa ordered OVHcloud in France and its Canadian<br \/>\nsubsidiary to hand over user data stored in France, the UK, and Australia.<br \/>\nWhile Canada is focusing a lot of attention on \u201cdata sovereignty\u201d, this<br \/>\ndecision should get a lot more attention, particularly because the Canadian<br \/>\ncourt is ordering the French company to violate a French law that is designed<br \/>\nto protect France\u2019s data sovereignty. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">I regularly deal<br \/>\nwith situations like this in my law practice, where I assist companies in<br \/>\nresponding to police demands for user data. But rarely does it get to this<br \/>\npoint, and I\u2019m afraid this sets a very negative precedent. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">This case touches<br \/>\non jurisdiction, cross-border data, foreign blocking statutes, and the limits<br \/>\nof Canadian investigative powers. It also relies heavily on the controversial <i>Brecknell<\/i><br \/>\ndecision from British Columbia \u2014 and I have some things to say about that.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">Let\u2019s walk through<br \/>\nthe case, and then I\u2019ll explain why I think the analysis in the decision goes<br \/>\noff the rails.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><a name=\"_heading=h.nh5vqws3qrka\"\/><span lang=\"EN\">This case arises out of a national security investigation. The<br \/>\nRCMP obtained a Production Order under the <i>Criminal Code<\/i> s.<br \/>\n487.014, requiring two companies to produce customer information linked to four<br \/>\nIP addresses. The two companies are OVH Group SA (a French company that<br \/>\nprovides cloud computing services globally, OVH\u2019s Canadian subsidiary, Hebergement<br \/>\nOVH Inc.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">All of the IP<br \/>\naddresses were hosted outside Canada \u2014 in France, the UK, and Australia.<br \/>\nThe data sought included subscriber information and metadata, but not<br \/>\nthe content of any communications.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">They argued that<br \/>\nthey did not have the data. It was held by the French parent company. They are<br \/>\nthe operating company in Canada that apparently runs servers here for the<br \/>\nglobal business. They don\u2019t manage global accounts or have access to the<br \/>\nrecords that the police were looking for. OVH Canada did <b>not<\/b> oppose the<br \/>\norder <i>as it applied to OVH Canada <\/i>on any jurisdictional basis. They are<br \/>\na company that has offices, employees and facilities that operates within<br \/>\nCanada. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The real issue was<br \/>\nthe attempt to compel <b>the French parent company<\/b> \u2014 a company with no<br \/>\nphysical presence in Canada \u2014 to produce data stored entirely abroad, and that<br \/>\nis subject to foreign laws.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The parent company<br \/>\nsaid:<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l8 level1 lfo10; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">\u201cWe don\u2019t operate in Canada.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l8 level1 lfo10; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">We don\u2019t store this data in<br \/>\nCanada.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l8 level1 lfo10; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">OVH Canada doesn\u2019t control this<br \/>\ndata.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l8 level1 lfo10; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">French law \u2014 specifically the <b>French<br \/>\nblocking statute<\/b> \u2014 prohibits us from producing it. (more about that<br \/>\nblocking statute later)<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">OVH also pointed<br \/>\nout that the proper, internationally-recognized channel for this type of<br \/>\nrequest is through <b>Mutual Legal Assistance<\/b> \u2014 the MLAT process \u2014 which<br \/>\nFrance said it would <i>expedite<\/i>. Yes, Canada and France have a treaty<br \/>\nunder which both countries have agreed to manage situations like this. It\u2019s<br \/>\nslower because it contains checks and balances. First Canada has to determine<br \/>\nif the request is appropriate, and then France reviews the request before<br \/>\ngetting a French order to provide the data. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The Crown responded<br \/>\nthat:<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"border: none; line-height: normal; margin-left: 36.0pt; mso-border-shadow: yes; mso-list: l6 level1 lfo4; mso-padding-alt: 31.0pt 31.0pt 31.0pt 31.0pt; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\" style=\"font-family: &quot;Noto Sans Symbols&quot;; mso-bidi-font-family: &quot;Noto Sans Symbols&quot;; mso-fareast-font-family: &quot;Noto Sans Symbols&quot;;\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\" style=\"color: black;\">OVH Parent has<br \/>\na \u201cvirtual presence\u201d in Canada, and based on the <i>Brecknell<\/i> case from BC,<br \/>\nand cases following that, a \u201cvirtual presence\u201d is enough.<\/span><span lang=\"EN\"><o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"border: none; line-height: normal; margin-left: 36.0pt; mso-border-shadow: yes; mso-list: l6 level1 lfo4; mso-padding-alt: 31.0pt 31.0pt 31.0pt 31.0pt; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\" style=\"font-family: &quot;Noto Sans Symbols&quot;; mso-bidi-font-family: &quot;Noto Sans Symbols&quot;; mso-fareast-font-family: &quot;Noto Sans Symbols&quot;;\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\" style=\"color: black;\">The company<br \/>\n\u201cpresents itself\u201d as a unified global enterprise on its website<\/span><span lang=\"EN\"><o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"border: none; line-height: normal; margin-left: 36.0pt; mso-border-shadow: yes; mso-list: l6 level1 lfo4; mso-padding-alt: 31.0pt 31.0pt 31.0pt 31.0pt; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\" style=\"font-family: &quot;Noto Sans Symbols&quot;; mso-bidi-font-family: &quot;Noto Sans Symbols&quot;; mso-fareast-font-family: &quot;Noto Sans Symbols&quot;;\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\" style=\"color: black;\">OVH Canada has<br \/>\npreviously responded to production orders about foreign IP addresses<\/span><span lang=\"EN\"><o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"border: none; line-height: normal; margin-left: 36.0pt; mso-border-shadow: yes; mso-list: l6 level1 lfo4; mso-padding-alt: 31.0pt 31.0pt 31.0pt 31.0pt; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\" style=\"font-family: &quot;Noto Sans Symbols&quot;; mso-bidi-font-family: &quot;Noto Sans Symbols&quot;; mso-fareast-font-family: &quot;Noto Sans Symbols&quot;;\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\" style=\"color: black;\">The French<br \/>\nblocking law is rarely enforced<\/span><span lang=\"EN\"><o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">With those facts on<br \/>\nthe table, the Court had to decide: Does a Canadian criminal court have<br \/>\njurisdiction over OVH\u2019s French parent? And even if it does, should the<br \/>\norder be revoked because of conflicting French law or because MLAT is the<br \/>\nproper mechanism?<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><a name=\"_heading=h.l8cd4bkd917p\"\/><span lang=\"EN\">The Court framed five issues:<o:p\/><\/span><\/p>\n<ol start=\"1\" style=\"margin-top: 0cm;\" type=\"1\">\n<li class=\"MsoNormal\" style=\"line-height: normal; mso-list: l7 level1 lfo1;\"><b><span lang=\"EN\">Did OVH Canada have \u201cpossession or control\u201d<\/span><\/b><span lang=\"EN\"> of the data?<o:p\/><\/span><\/li>\n<li class=\"MsoNormal\" style=\"line-height: normal; mso-list: l7 level1 lfo1;\"><b><span lang=\"EN\">Did the Court have jurisdiction<\/span><\/b><span lang=\"EN\"> over OVH<br \/>\n     Parent?<o:p\/><\/span><\/li>\n<li class=\"MsoNormal\" style=\"line-height: normal; mso-list: l7 level1 lfo1;\"><b><span lang=\"EN\">Would French law prohibit disclosure<\/span><\/b><span lang=\"EN\">,<br \/>\n     triggering s. 487.0193(4)(b) &#8211; which justifies varying or revoking a<br \/>\n     production order where the data is \u201cotherwise protected from disclosure by<br \/>\n     law\u201d?<o:p\/><\/span><\/li>\n<li class=\"MsoNormal\" style=\"line-height: normal; mso-list: l7 level1 lfo1;\"><b><span lang=\"EN\">Should MLAT be required<\/span><\/b><span lang=\"EN\"> in these<br \/>\n     circumstances?<o:p\/><\/span><\/li>\n<li class=\"MsoNormal\" style=\"line-height: normal; mso-list: l7 level1 lfo1;\"><span lang=\"EN\">If French law applies, should the Court <b>exercise its discretion<\/b><br \/>\n     to revoke or vary the order?<o:p\/><\/span><\/li>\n<\/ol>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The first Question is<br \/>\nwhether OVH Canada has \u201cPossession or Control\u201d of the data<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">With respect to<br \/>\npossession or control, the Court found that OVH Canada had enough of a<br \/>\nconnection to the information \u2014 including prior instances where it assisted<br \/>\npolice, and the ability to preserve data \u2014 to justify the authorizing judge\u2019s<br \/>\nconclusion that it had \u201cpossession or control.\u201d<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><a name=\"_heading=h.mbl3r1wp5wll\"\/><span lang=\"EN\">The second question was whether there was jurisdiction over OVH Parent<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">Regarding<br \/>\njurisdiction over OVH Parent, relying heavily on the <i><a href=\"https:\/\/canlii.ca\/t\/hplpj\" target=\"_blank\">Brecknell<\/a><\/i>, <i><a href=\"https:\/\/www.canlii.org\/en\/ab\/abca\/doc\/2022\/2022abca269\/2022abca269.html?resultId=bcd2cce4bb9b4cf7b20e1c9bd8a26788&amp;searchId=2025-12-06T11:10:46:717\/35304dfe5f2c44a3bc6b1b448873288b&amp;searchUrlHash=AAAAAQAJYnJlY2tuZWxsAAAAAAE\" target=\"_blank\">Love<\/a><\/i>,<br \/>\nand <i><a href=\"https:\/\/www.canlii.org\/en\/on\/onsc\/doc\/2022\/2022onsc7413\/2022onsc7413.html?resultId=f916f8575ab2437096023ff8a8426d53&amp;searchId=2025-12-06T11:11:25:229\/855b8d42a36746b184b8cc8045500974&amp;searchUrlHash=AAAAAQAJYnJlY2tuZWxsAAAAAAE\" target=\"_blank\">textPlus<\/a><\/i> decisions, the Court held that:<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l2 level1 lfo8; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">A company may be subject to<br \/>\nCanadian jurisdiction without physical presence<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l2 level1 lfo8; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">A \u201cvirtual presence\u201d or \u201creal and<br \/>\nsubstantial connection\u201d can be enough<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l2 level1 lfo8; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">OVH operates data centres in<br \/>\nCanada<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l2 level1 lfo8; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">OVH\u2019s website presents itself as a<br \/>\nunified global business<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l2 level1 lfo8; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Therefore, the French parent was<br \/>\nsufficiently connected to Canada<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The third question<br \/>\nwas about the effect of the French Blocking Law<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The Court accepted<br \/>\nFrench government statements that the French blocking law applied, but it found<br \/>\nit could be largely disregarded because (a) The law has been rarely enforced,<br \/>\n(b) There is no \u201creal risk\u201d of prosecution, and (c) Courts in other countries<br \/>\nhave treated it as an \u201cempty vessel\u201d. Yup. It\u2019s a law but let\u2019s largely ignore<br \/>\nit.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><a name=\"_heading=h.blp9n1oxrf8b\"\/><span lang=\"EN\">The next question was whether the police should go through the mutual<br \/>\nlegal assistance process instead of a production order. The judge held that the<br \/>\nMLAT is not mandatory, it can be slow and it is not mutually exclusive with<br \/>\ndomestic orders. The police can choose door A or door B. Their call. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">In the final step,<br \/>\nabout discretion, the judge upheld the production order against both OVH Canada<br \/>\nand the French parent, concluding that: (a) OVH Parent has a real and<br \/>\nsubstantial presence through its \u201cvirtual presence\u201d in Canada; (b) The risk<br \/>\nunder French law is minimal, and (c) The national security interest outweighs<br \/>\ncomity concerns.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">In a nutshell,<br \/>\nthat\u2019s what the court decided. And I think it\u2019s deeply flawed. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><a name=\"_heading=h.g8k5v8xvx6xj\"\/><span lang=\"EN\">There are, in my humble opinion, major problems with this decision. And<br \/>\nthey don\u2019t just affect OVH Parent. It will have a big impact on Canada\u2019s own<br \/>\nattempts to assert data sovereignty. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><a name=\"_heading=h.wez5gvn3dibt\"\/><span lang=\"EN\">The first problem is following the BC Court of Appeal decision called <i><a href=\"https:\/\/canlii.ca\/t\/hplpj\" target=\"_blank\">Brecknell<\/a><\/i><o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The Court relies on<br \/>\n<i>Brecknell<\/i> as though it stands for a broad doctrine that Canadian courts<br \/>\ncan compel <i>any<\/i> foreign service provider operating online to disclose<br \/>\nforeign-hosted data as long as the company is \u201cvirtually present\u201d in Canada.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><i><span lang=\"EN\">Brecknell<\/span><\/i><span lang=\"EN\"> is a 2018 case from the British Columbia Court of Appeal. In that<br \/>\ncase, the police wanted some data from Craigslist. They contacted Craigslist,<br \/>\nwho said \u201ccome back with a production order and we\u2019ll happily give you the<br \/>\ndata.\u201d So the police go to the court to get their production order and the<br \/>\ncourt says that it can\u2019t issue a production order directed at a company outside<br \/>\nof Canada. So the police go to another court and get the same answer. So the<br \/>\npolice appeal that, and end up in the British Columbia court of appeal. The<br \/>\nBritish Columbia Court of Appeal said that Canadian courts can issue production<br \/>\norders naming companies outside of Canada, as long as they have a \u201cvirtual<br \/>\npresence in Canada.\u201d<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">But in the <i>Brecknell<\/i><br \/>\ncase, Craigslist \u2014 the target of the order \u2014 had already agreed it would comply<br \/>\nwith Canadian court orders. Through counsel, Craigslist said: <i>\u201cIf we get an<br \/>\norder, we will respond.\u201d<o:p\/><\/i><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">This is not a small<br \/>\ndetail. This is the very foundation of jurisdiction in that case.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">In other words:<br \/>\nCraigslist voluntarily accepted Canadian jurisdiction.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">With that fact,<br \/>\njurisdiction really should not have been an issue. Craigslist said \u201cwe have the<br \/>\ndata, just bring us a production order.\u201d<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">This is not the<br \/>\nsituation with OVHcloud. OVH France explicitly said:<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l4 level1 lfo2; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">We do <b>not<\/b> accept<br \/>\njurisdiction<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l4 level1 lfo2; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">And we are <b>prohibited<\/b> by<br \/>\nforeign law from producing it<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">OVH Cloud also<br \/>\nsaid, we have the data and we will preserve it for you so you can get it<br \/>\nthrough the established, diplomatic, country-to-country channels. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">I am of the view<br \/>\nthat <i>Brecknell<\/i> was wrongly decided and this entire line of cases is<br \/>\nproblematic. We\u2019ve gotten here, I think, they are largely \u201cex parte\u201d appeals.<br \/>\nCraigslist was not at the hearing for the production order. They were not at<br \/>\nany level of court. Until the court of appeal, it was just the cops and the<br \/>\nprosecution arguing for jurisdiction. At the court of appeal, an amicus was<br \/>\nappointed who did a commendable job. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">This line of cases<br \/>\nalso reaches the conclusion that this is the sort of situation that production<br \/>\norders are designed to address. And they are partially right, but again they<br \/>\nsuffer from generally only hearing from prosecutors on these questions. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The idea behind a<br \/>\nproduction order is that the court can order someone to hand over data or<br \/>\nproduce data. It is distinct from a search warrant, where the court clearly has<br \/>\nto have jurisdiction over the place to be searched and the police need<br \/>\nauthority as police officers to search the place. Places are physical. There is<br \/>\nno way under recognized international law for a judge in Ontario to give the<br \/>\nRCMP in Ontario a warrant to search premises in France for these records. If<br \/>\nthey were to show up in Paris with their warrant, they\u2019d likely be arrested by<br \/>\nFrench police for trespassing. And we\u2019d have an international incident. It<br \/>\nwould be the same as sending the RCMP to France to arrest someone without the<br \/>\ncooperation of the French government. It\u2019s just not done.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">Production orders<br \/>\nwere created so that a person or entity within the court\u2019s jurisdiction can be<br \/>\nordered to produce a record that is under that person\u2019s control. And that<br \/>\ngenerally operates regardless of where the record is. But this depends on the<br \/>\nperson being within the court\u2019s jurisdiction. It\u2019s a great alternative to a<br \/>\nsearch warrant because it\u2019s not based on the police searching for something,<br \/>\nbut telling a person to provide data that they control. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">A key principle of<br \/>\ninternational law as applied in Canada is that Canadian law does not operate<br \/>\nextraterritorially unless Parliament explicitly provides for it. The B.C. Court<br \/>\nof Appeal in <i>Brecknell<\/i> did note this at paragraph 23, but failed to<br \/>\nidentify any parliamentary signal indicating that production orders were<br \/>\nintended to have effect on persons wholly, physically outside of Canada.\u00a0<\/span><\/p>\n<blockquote>\n<p class=\"MsoNormal\" style=\"line-height: normal;\">[23]\u00a0 \u00a0 \u00a0 \u00a0 The need to interpret the section in light of restrictions placed on extraterritorial effects is uncontroversial. The fundamental principles were canvassed in R. v. Hape, 2007 SCC 26. There, Justice LeBel identified a number of settled but important principles. First, customary international law, which has been adopted domestically, limits the actions a state may legitimately take outside its borders. Customary international law is based on respect for the sovereignty and equality of foreign states. Sovereign equality commands non\u2011intervention and respect for the territorial sovereignty of foreign states. <b>Nonetheless, Parliament may legislate \u201cextraterritorially\u201d in violation of those principles provided it does so expressly: see paras. 35\u201146.<\/b><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\">&#8230;<\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\">[30]\u00a0 \u00a0 \u00a0 \u00a0 <b>The section is silent on issues to do with extraterritoriality, and it is silent on any question dealing with the location of the documents.<\/b> Section 487.019(2) may offer some assistance by stipulating that, unlike search warrants, <b>the order has effect throughout Canada<\/b> without requiring endorsement if executed in another jurisdiction. The section reads:<\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\">487.019(2) The order has effect throughout Canada and, for greater certainty, no endorsement is needed for the order to be effective in a territorial division that is not the one in which the order is made.<\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\">It appears to me that this section is addressing a difference between search warrants and production orders. <b>It does not directly deal with extraterritorial issues.<\/b><\/p>\n<\/blockquote>\n<p>The<br \/>\nonly mention of territoriality in the Criminal Code production order provisions<br \/>\nis confined to saying that they operate throughout Canada. That seems to me to<br \/>\nbe a signal in the other direction. That\u2019s parliament saying this is confined<br \/>\nto Canada.<\/p>\n<div class=\"separator\" style=\"clear: both; text-align: center;\"><a href=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEhcJJVBckeiBDTgUboSxbscoUwfkyJR0FkNahryK89ATMrT3CRmYWIZ1hyphenhyphenauJTCl-wX3ic6hhcgIh6LOPcoAZd7QFlpNC7qD6rQ60w8xUtE6ctxqOadCED6l9roXGx-8RUCIrX0c4U_sSPq1Cl6U89iZa8Twy3QUOtoD7ciFj7jVr8tH3hmHEKE2Q\/s1440\/Slide4.PNG\" imageanchor=\"1\" style=\"clear: right; float: right; margin-bottom: 1em; margin-left: 1em;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" data-original-height=\"1440\" data-original-width=\"1080\" height=\"320\" src=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEhcJJVBckeiBDTgUboSxbscoUwfkyJR0FkNahryK89ATMrT3CRmYWIZ1hyphenhyphenauJTCl-wX3ic6hhcgIh6LOPcoAZd7QFlpNC7qD6rQ60w8xUtE6ctxqOadCED6l9roXGx-8RUCIrX0c4U_sSPq1Cl6U89iZa8Twy3QUOtoD7ciFj7jVr8tH3hmHEKE2Q\/s320\/Slide4.PNG\" width=\"240\"\/><\/a><\/div>\n<p>The notion of a<br \/>\n&#8220;virtual presence&#8221; was an invention of the Court of Appeal and is<br \/>\ncontrary to existing principles of international law. Even under the more<br \/>\nflexible civil rules, the Supreme Court of Canada has cautioned that<br \/>\n&#8220;carrying on business&#8221; requires some form of actual, not only<br \/>\nvirtual, presence in the jurisdiction. And public international law &#8211; such as<br \/>\ncriminal jurisdiction &#8211; is different from private international law such as<br \/>\ndetermining where a plaintiff can bring a lawsuit.<o:p\/><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\">The <i>Brecknell<\/i><br \/>\ncourt wrongly disregarded the inability to enforce the order against a company<br \/>\nlike Craigslist. The issuance of a production order extending outside Canada is<br \/>\nan exercise of enforcement jurisdiction, which violates international law and<br \/>\nCanadian domestic law absent clear authority from Parliament. The difference<br \/>\nbetween an \u201corder\u201d and a \u201crequest\u201d is the ability to put someone in the<br \/>\ndefendant\u2019s dock for not following it. A Canadian production order directed at<br \/>\na non-Canadian company has a real potential to offend comity and the other<br \/>\ncountry\u2019s sovereignty.<\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">So what about<br \/>\nMutual Legal Assistance Treaties (called MLATs)? These are the existing,<br \/>\nagreed-upon mechanism for Canadian police to obtain data from non-Canadian<br \/>\ncompanies. In circumstances where an order might offend comity and sovereignty,<br \/>\nMLATs are how countries decide to deal with the issue.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The effect of<br \/>\nprivacy laws or blocking laws were not at issue and were not considered \u2013 but<br \/>\nprobably should have been \u2013 by the <i>Brecknell<\/i> court. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">In the OVH case,<br \/>\nthe court refers to the case of The Queen and Love from the Alberta Court of<br \/>\nAppeal (R v Love, 2022 ABCA 269), which was a case dealing with the<br \/>\nadmissibility of data that had been produced by Facebook from the US pursuant<br \/>\nto a production order. It was not an application to vary or revoke an active<br \/>\nproduction order. The Love court followed <i>Brecknell<\/i>. Again, what\u2019s<br \/>\nmissing is the fact that Facebook provided the data pursuant to that order.<br \/>\nTheir policy \u2013 like most big US tech companies \u2013 is that they will follow<br \/>\nCanadian legal processes voluntarily where they can do so consistent with their<br \/>\nobligations under US law. By and large, Facebook\u2019s voluntary cooperation should<br \/>\nhave made jurisdiction a non-issue in that case.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The OVH judge also<br \/>\nrefers to a case involving TD Bank from Quebec (Banque Toronto Dominion c. Cour<br \/>\ndu Qu\u00e9bec, 2025 QCCS 2094). In that case, a big issue was whether TD Bank in<br \/>\nCanada could be ordered to produce records held by one of its foreign subsidiaries.<br \/>\nThe Court concluded it had sufficient control over the subsidiary to require<br \/>\nthe production of the records. That\u2019s the inverse of the relationship between<br \/>\nOVH Canada and OVH Parent. A subsidiary does not control the parent company. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">So to use <i>Brecknell<\/i><br \/>\nas if it resolved this question is \u2014 frankly \u2014 a misreading of the case.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><a name=\"_heading=h.s00u5vd5tz3m\"\/><span lang=\"EN\">Problem 2 \u2014 The Court Treats Ordinary Corporate Structure as a Legal<br \/>\nFiction<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">In addition, the<br \/>\ndecision disregards the fundamentals of second year law school \u201cBusiness<br \/>\nAssociations\u201d to treat OVH as effectively one entity, leaning heavily on:<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l1 level1 lfo7; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">OVH\u2019s branding<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l1 level1 lfo7; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">The fact \u201cit\u201d has data centres in<br \/>\nCanada<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l1 level1 lfo7; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">The \u201ccollaborative language\u201d on<br \/>\nits website<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l1 level1 lfo7; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Shared legal services<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l1 level1 lfo7; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">The appearance of a global<br \/>\nenterprise<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">But this<br \/>\nmisunderstands how multinational cloud companies operate and how corporate law<br \/>\napplies.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">I sometimes think<br \/>\nthat some practitioners who spend all their time focused on criminal law forget<br \/>\nthe fundamentals of corporate law. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><b><span lang=\"EN\">Corporations are<br \/>\nseparate legal persons. <\/span><\/b><span lang=\"EN\">Subsidiaries are not<br \/>\nautomatically global agents of the parent company. And cloud marketing \u2014 \u201cour<br \/>\nglobal infrastructure,\u201d \u201cour data centers around the world\u201d \u2014 is not a legal<br \/>\nadmission of control. It\u2019s marketing. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">Corporations are<br \/>\nseparate legal persons and this corporate separateness is generally only<br \/>\ndisregarded where there is actual fraud going on. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">If courts treat<br \/>\nbranding copy as determinative of \u201ccontrol,\u201d then:<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l10 level1 lfo11; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Any cloud provider operating in<br \/>\nCanada<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l10 level1 lfo11; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">With foreign infrastructure<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l10 level1 lfo11; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Could be compelled to produce<br \/>\nforeign data<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l10 level1 lfo11; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Regardless of its actual legal<br \/>\nauthority to do so<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">This collapses<br \/>\ncorporate separateness in a way that is deeply inconsistent with both Canadian<br \/>\ncorporate law and international norms. Which leads directly to the next<br \/>\nproblem.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\">The Court points to<br \/>\na previous investigation where OVH Canada provided subscriber information for a<br \/>\nGerman-hosted IP address to suggest that OVH Canada effectively has access and<br \/>\ncontrol over it.<a name=\"_heading=h.1lu4q6bja51u\"\/><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">But OVH explained \u2014<br \/>\nand this is common across the industry \u2014 that:<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l0 level1 lfo9; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\" style=\"mso-bidi-font-weight: bold;\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">The Canadian subsidiary assisted because doing so was <b>legally safe <o:p\/><\/b><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l0 level1 lfo9; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\" style=\"mso-bidi-font-weight: bold;\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">There was no <b>blocking law that stood in the way<o:p\/><\/b><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l0 level1 lfo9; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\" style=\"mso-bidi-font-weight: bold;\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">The foreign affiliate <b>voluntarily cooperated<o:p\/><\/b><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">This demonstrates <i>cooperation<\/i>,<br \/>\nnot <i>control<\/i>.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">Access that is <b>permitted<br \/>\nby a foreign affiliate<\/b> is not evidence of legal authority to compel access.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">If you need a<br \/>\nparticular tool for a project, and I don\u2019t have one but my parents do, I may<br \/>\nfacilitate YOUR borrowing it from MY parents. That doesn\u2019t mean I have control<br \/>\nover that tool. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">OVH Canada receives<br \/>\na production order for data that is under the control of its parent company.<br \/>\nRather than say \u201cgo to France\u201d, OVH Canada facilitates the parent company<br \/>\nproducing the data in circumstances where it is lawfully able to do so. It\u2019s<br \/>\ncalled being helpful, and should not lead to the conclusion that the subsidiary<br \/>\nhas any possession or control of data that\u2019s entirely in the possession and<br \/>\ncontrol of the parent company. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">By treating<br \/>\noccasional past cooperation as proof of control, the Court dramatically expands<br \/>\nwhat \u201cpossession or control\u201d means. After this, it would be prudent for the<br \/>\nCanadian subsidiary of a foreign corporation to tell Canadian police to just go<br \/>\npound sand, rather than facilitate matters through internal channels. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><a name=\"_heading=h.ny13fgm22fn2\"\/><span lang=\"EN\">This is perhaps the most troubling aspect of the decision: The Court<br \/>\nMinimizes Foreign Law Because It\u2019s \u201cNot Enforced\u201d<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The Court<br \/>\nacknowledges that the French blocking law applies. The French government \u2014<br \/>\nthrough the \u201cService de l\u2019information strat\u00e9gique et de la s\u00e9curit\u00e9<br \/>\n\u00e9conomiques\u201d (SISSE) \u2014 which administers and enforces this French law explicitly<br \/>\nsaid so.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">But the judge<br \/>\nconcluded it doesn\u2019t really matter because the French law is apparently rarely<br \/>\nenforced, the Canadian prosecutors said there\u2019s no \u201creal risk\u201d of prosecution<br \/>\nand other courts have treated it as an \u201cempty vessel\u201d. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">I think this<br \/>\napproach is dangerous.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">The rule of law<br \/>\ndepends on courts respecting <i>what the law is<\/i>, not how often a prosecutor<br \/>\ndecides to enforce it. A foreign state\u2019s policy choices about enforcement:<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l5 level1 lfo6; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Do <b>not<\/b> change the meaning<br \/>\nof the statute<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l5 level1 lfo6; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Do <b>not<\/b> change OVH\u2019s legal<br \/>\nobligations under French law<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l5 level1 lfo6; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Do <b>not<\/b> give Canadian courts<br \/>\nauthority to override foreign legislation<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">A law is a law. I<br \/>\nknow dozens of Canadian laws that are rarely enforced, but they still need to<br \/>\nbe followed. Remember, this is a Canadian court shrugging off a law duly<br \/>\nenacted by an allied country, France.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">If Canada wants<br \/>\nforeign law to bend, the proper channel is <b>MLAT<\/b> \u2014 a mechanism built<br \/>\nthrough mutual consent \u2014 not unilateral judicial action.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><a name=\"_heading=h.40ltfldj9yxl\"\/><span lang=\"EN\">International comity is built on reciprocity. If Canada orders French<br \/>\ncompanies to violate French law, then:<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l9 level1 lfo3; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Other countries may order Canadian<br \/>\ncompanies to violate Canadian law <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l9 level1 lfo3; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Canada will have no principled<br \/>\nbasis to object <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l9 level1 lfo3; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">Global cloud providers will face<br \/>\nimpossible conflicts <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l9 level1 lfo3; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">And privacy for Canadians abroad<br \/>\nwill be weakened <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">Remember, this is<br \/>\nhappening at the exact time that the Canadian government is focused on Canadian<br \/>\n\u201cDigital Sovereignty\u201d. We would find it incredibly offensive if a French or<br \/>\nChinese court were to order a Canadian company, in Toronto, to violate Canadian<br \/>\nlaw. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">MLAT exists <b>precisely<\/b><br \/>\nfor situations where:<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l3 level1 lfo5; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">The data is located abroad<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l3 level1 lfo5; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">A foreign statute prohibits<br \/>\ndisclosure <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-left: 36.0pt; mso-list: l3 level1 lfo5; text-indent: -18.0pt;\"><!--[if !supportLists]--><span lang=\"EN\"><span style=\"mso-list: Ignore;\">\u25cf<span style=\"font: 7.0pt &quot;Times New Roman&quot;;\">\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<\/span><\/span><\/span><!--[endif]--><span lang=\"EN\">And the foreign state must<br \/>\nauthorize or supervise the production <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">France explicitly<br \/>\ntold Canada it would <i>expedite<\/i> the MLAT request. Refusing to use MLAT<br \/>\nbecause it might be slow is not a justification for disregarding foreign law.<br \/>\nIn this case, there is no doubt that the data exists, that France will provide<br \/>\nit via the MLAT and will do so speedily. Ordering OVH in France to break French<br \/>\nlaw is unnecessary, unreasonable and \u2013 in my view \u2013 gratuitous. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><a name=\"_heading=h.as2rebu1c5gw\"\/><span lang=\"EN\">This decision is important, but in my view, it\u2019s also misguided.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">By stretching <i>Brecknell<\/i><br \/>\nbeyond its facts, by treating global branding as evidence of legal control by a<br \/>\nlocal subsidiary, by using past cooperation as proof of present authority, and<br \/>\nby dismissing binding French law because it\u2019s \u201cnot vigorously enforced,\u201d the<br \/>\nCourt has weakened the principles of comity, corporate separateness, and legal<br \/>\ncertainty.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">While Canada is<br \/>\ngetting excited about \u201cdigital sovereignty\u201d, the RCMP, these prosecutors and<br \/>\nthe court are disregarding France\u2019s explicit law about its own \u201cdigital<br \/>\nsovereignty.\u201d This is a dangerous precedent to set. After this, why would<br \/>\nFrance give a toss about Canadian laws designed to protect Canadian data? <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">There <i>is<\/i> a<br \/>\nlawful path \u2014 MLAT, letters rogatory, diplomatic channels \u2014 and international<br \/>\ncooperation depends on states using those channels rather than overriding each<br \/>\nother\u2019s laws.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">And one important<br \/>\nthing to remember: OVH is not suspected of committing any crime. It simply has<br \/>\nrecords about someone that may be relevant for a Canadian investigation. It is<br \/>\nnot hiding behind a veil of French law to shield itself from liability. It is an<br \/>\nentirely innocent third party that is getting dragged into a Canadian<br \/>\ninvestigation, and is now being ordered to violate the law in the country where<br \/>\nthey are based. And that order is entirely unnecessary, since France and Canada<br \/>\nhave already negotiated a clear path to get access to this data without<br \/>\nviolating anyone\u2019s laws. <o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\">I understand the<br \/>\ncase is being appealed \u2013 and rightly so. I\u2019ll be keeping an eye on it.<o:p\/><\/span><\/p>\n<p class=\"MsoNormal\" style=\"line-height: normal;\"><span lang=\"EN\"><o:p>\u00a0<\/o:p><\/span><\/p>\n<p><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Just recently, I heard about a very significant new decision from the Ontario Court ofJustice, where a judge in Ottawa ordered OVHcloud in France and its Canadian subsidiary to hand over user data stored in France, the UK, and Australia. While Canada is focusing a lot of attention on \u201cdata sovereignty\u201d, this decision should get [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":342337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[6792,14072,3619,410,824,76930,906,12685,38348],"dealstore":[],"offerexpiration":[],"class_list":["post-342336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-break","tag-canadian","tag-company","tag-court","tag-digital","tag-forcing","tag-french","tag-law","tag-sovereignty"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What digital sovereignty? 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