The ability of a trademark owner to enforce its trademark rights
on the Internet frequently depends on establishing jurisdiction.
The rights associated with a registered trademark are territorial,
and a Canadian court does not have jurisdiction concerning
infringement outside Canada. There are three ways jurisdiction may
be established against an out-of-province defendant: (1) presence
jurisdiction (located or carrying on business in a province); (2)
consent-based jurisdiction; and (3) assumed jurisdiction.
To determine when jurisdiction should be assumed, Canadian
courts apply the "real and substantial connection" test
as adopted and developed by the Supreme Court of Canada. The test
was designed to prevent overreaching concerning extraterritorial
and transnational transactions. The "real and substantial
connection" allows the court to assume jurisdiction.