Earlier quoted context omitted.
Indeed. International copyright law needs revising - but I don't think we'll all be agreeing on anything soon, especially after the whole SOPA debacle. If you run a dubious website, your only option is to block all countries other than your own, and provide a notice to that effect. Is it silly? I dont know. It's hard to argue that you have the right to interact with a country's inhabitants but that the country cannot…
Where does the government derive authority to govern interactions where only half take place inside their borders?
Of course, if a crime is only half-committed in one country, then it is also only half-committed in the other country (presuming it is a crime in both). So either of the countries must be free to prosecute.