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Tigrou - 4:37 pm on Sep 8, 2006 (gmt 0)
Do you honestly think that a typical law suit or gov't action is going to bother hitting someone up hosting in say, Malaysia? In extreme cases sure, in other cases no. It's an extra form of insurance.
If you think hosting offshore puts you out of legal risk, you are wrong. It is where your business is located (and even then the government will still go after you if they want).