Two recent decisions—one by the U.S. Court of Appeals for the Second Circuit and one by the U.S. Supreme Court—highlight the extent to which the courts continue to grapple with the question of when to apply a U.S. statute beyond the territorial boundaries of the United States. Given the many cases, both civil and criminal, that involve at least some conduct overseas, how the courts answer this question has the potential to dramatically diminish or extend the impact of U.S. law on people, corporations and other entities around the world.

On July 14, 2016, the Second Circuit issued its decision in In the Matter of a Warrant to Search a Certain E-Mail Account Controlled and Maintained by Microsoft, which arose in the context of a federal narcotics investigation. The government had sought and received from a federal magistrate a warrant, issued pursuant to Section 2703 of the Stored Communications Act, for the content of emails from the account of a Microsoft customer, having shown probable cause to believe that the account had been used in furtherance of narcotics trafficking.

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