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Originally Posted by diane_phaneuf
I would imagine the fact that they have kept track of the people who downloaded that movie, and not something popular means that they still don't have much jurisdiction up here from American companies
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An American company has copyright enforceable in Canada for their work whether they created the work in the US or Canada. An American company has the legal right to sue in Canada for damages. So, jurisdiction is not an issue.
The bigger issue is they'll want to make sure they get the right precedent from the get go. I think they've picked an obscure movie as opposed to a blockbuster for the purposes of making an example and testing how the courts will react, and also for public perception -- they don't want the whole country to live in fear that they might be liable because junior downloaded "The Amazing Spider Man" on his laptop in his bedroom. It could cause the matter to become a mass public issue, which the copyright holders do not want.
They need to start small and build precedent with the courts. Until they've achieved that they're unlikely to do anything which would cause public backlash. It has nothing to do with jurisdiction.