Hello Gordon,
> 
> <<<- Sealand claims souvereignity but has no commercial code that would
> <<<establish rules of conduct, taxation, contract law, etc.
> 
> Taxation? Contract law? Rules of conduct? Where would they hold the trial? ...
The reason why they should have them is to make clear that they can NOT
decide ad hoc to raise taxes (in the sense of implementing tax rules and
starting to charge). Also, having a commercial code, contract law and
rules of conduct does not necesarily imply that there has to be a
judiciary aside from the absolute monarch or his appointees. Meaning,
HavenCo and Sealnd are two different entities. One is a
company/venture/business/service provider, the other is a country. If the
country has no rules, then the service business can do as it pleases
(poach customers, spam visitors, etc) and while you can vote with your
wallet, it would put your clients at a disadvantage if after a few months
you moved off Sealand again.
Having rules will protect your clients against HavenCo's actions if those
actions breach the rules.
You could then complan to the monarch who could either make a ruling or
appoint someone to do. An actual trial if you want to go that far, could
take place online.

Now, I'm not saying that HavenCo is crook nor that Sealand is in any way
questionable. What I am saying is that there is no foundation to conduct
business on and HavenCo's terms of service (as well as your own) are hence
useless as they lack a basis in law, because there is no law.
That, in turn means, everyone using any service related to Sealand has a
gentleman's agreement at best. Common law does not apply, because there
are no precedents.
> 
> <<<- Sealand's ruler is an absolute monarch without checks and balances.
> So?
The word here is continuity. I accept that both the monarch and heir
apparent/prince regent appear to be honouarble people of good character,
but what about the next in line? Indeed, who IS the next in line? What if
heaven forbid something happens to the Bates' family and suddenly Sealand
is without a ruler. There are no rules that would take care of things.
Indeed, HavenCo's share holders could proclaim soverignity over Sealand in
the absence of anyone contesting.
So again, you have a gentleman's agreement and don't know if the next in
line is a gentleman. If a business venture takes a longer term view of
things, which anyone who ever made a business plan worth the cost of the
paper it's printed on would do, then Sealand and by extension HavenCo
looks like a partner you can deal with (or don't) on a month-to-month
basis.
That in turn is not something I usually do - and I believe you to be more
solid as well. Even the move of Katz Global to Panama suggestes foresight
and careful planning.

> It is suprising to me that the people who should be the most outspoken about > 
> government are the first to complain when there is none, ...
I always considered governments as a good thing - when enjoyed in small
quantities. I like the protection of the rule of law, I enjoy the benefits
of a criminal code and enforcement agencies that let me sleep at night (or
posting to this list) knowing that a teenage step daughter will be safe
when walking home from a party three blocks away, with a friend at 4 am.
In fact, I'm even a monarchist at heart (those of you who know me, know
why ;o).
What I dislike are double standards, absence of standards and being at the
mercy of a government that doesn't follow it's own rules, makes rules as
they go, OR has none.
In other words, I like the Malaysian model of government and dislike the
American one.
> 
> ok fine. So you would rather pay lower fees to have your servers in the USA 
> guaranteeing your customers are at the mercy of the
> Government?
Certainly! There is only so much interference from the US government, as
long as everybody plays by the rules. When we do get an inquiry, as
happens from time to time, mainly by the USPS, we answer their questions
as good as we must.
Let's face it, most gov questions relate to potential fraud and it is a
good thing that fraudsters are having a hard time.
On the other hand, we host dozens of highly controversial sites and the
gov only once had some questions about one of them, some of which we
answered and others which we didn't because we failed to see where the
answer was related to anything illegal. It appears that this kind of
attitude is acceptable to everyone involved. We host political sites and
religious sites because we believe not only in freedom of speech, but also
that it is vital for an interested public to gather information from other
- even controversial - sources, in order to form an informed opinion.
At the same time, we host anything else that does not conflict with our
TOS and policies.

But I honestly believe that simple fact that we are straight forward in
our approach is why we have a 'mutually beneficial relationship' with the
US gov.
We try to ensure that sites we host are above the board and shut down
sites when we find out that they are breaking any laws, as I'm sure you do
as well.
This means of course, that even if a client would host in Panama or indeed
in Sealand with you, but was stealing investors' money inan investment
scam, then you would shut him down - just as we would.
If someone has a legal investment concept that pays high returns, then he
can as well host that in the US - or Europe, for that matter.
> 
> What happens when a clients competition tries to get rid of them by
> complaining to some agency and they start a false investigation? 
That is then when having a spotless reputation with investigating bodies
becomes a relevant bargaining chip.
Of course, there is always the issue that we don't know the real identity
of some of our clients - especially those who live overseas and those who
pay with e-gold. We can't really ensure that someone who uses the privacy
hosting options and pays with e-gold is who he says he is. But, at the
same time, there is no law that would force the client to disclose his
identity to us unless it is required for fulfilment of the contract, which
in most cases it isn't.
Clients sign up, agree not to use the account for illegal purposes and pay
by e-gold. If we get a complaint about a site operator, then we become
active, but until that time, they have a constitutional right to privacy.
Which by the way is something they have neither in Sealand nor in Panama
;o)

> Most hosting companies roll over so easy and they are so afraid of the
> spotlight. Shame on them!
I agree on both points. But that only means that they are stupid. I
wouldn't mind a bit of spotlight for cyberica.net...
> 
> They have rules...
> No spam, no kiddie porn, and they will turn you in to interpol if you are a
> terrorist. oh... and pay your bills or you get shut off.
> 
And that is where the trouble starts: What defines a terrorist? One man's
terrorist is another man's freedom fighter, one man's soldier is another
man's invading terrorist. Who decides, where is the rule, what is the
definition?
Oh, and what about fraud? Hate crimes? Credit card number auctions? I'm
sure they won't host them either - but it's not in the rules. Without
rules and guidelines, you don't know which of your customers would cross a
line...

Two mentions of bill paying. Hmmm. What have you heard? We are infamous
for paying months ahead (makes the accounting easier), own most of the
servers we operate, outright and are involved in the ownership of one of
the data centers we use. So, your source seems to be unreliable at best
;o)
> 
> Do you enjoy these protections under the Autrailian Commonwealth?
> (This is where you are right?) 
Nope on both counts. We are an American company after all (amongst other
things)
So, American law applies to our hosting division. But the administration
is elsewhere, holding structures are somewhere else, and I am somewhere
completely different altogether.
One might say we picked, mixed and matched, the best jurisdiction for each
individual division and the most fitting physical location for everything
else. The beauty of the net, really. Currently we have eleven formal
companies and business entities in five jurisdictions, not counting reps
and agents.
> 
> <<<If the conspirators fail, then they will first
> <<<go after the service providers, next after the ventures based on or using
> <<<Sealand and finally make things difficult for everyone remotely related to
> <<<Sealand - such as your customers hosting there.
> 
> I disagree with this statement and think it is 100% false. How could they even find 
> out who the customers are?

They could read this list... set up a hosting account with you and trace
the server location to Sealand...

> For something like this to
> happen it has to be an act of war.
Not at all. Tracing customers of HavenCo is not exactly difficult.
Harrassing them in their location of business is then the logical next
step. No war required. Not even a helicopter ride to Sealand.
> 
> <<<Now, while sticking to Sealand might earn you a medal for bravery (now,
> <<<there is an idea), it is not necessarily a wise business choice.
> 
> Again I disagree, although I always appreciate your opinion. What is the nature of a 
> wise business choice? Is it one where you earn
> a profit on your investment legally? Well then...
Not exactly. I would consider a wise business choice a decission that
ensures best possible service to your clients while generating a profit
for yourself.
Meaning, the risk of getting client's accounts involved in a turf war or
governmental pi**ing contest is in my opinion not a wise choice because
the possible gains for client and you alike do not warrant the risks and
efforts taken.

But, I am known to be pragmatic about these things and try to find the
most pratical solution, such as registering a company and maintining
accounts and an office address in the US (which some people by now equate
with making a pact with the devil). Of course, the marketing company
registered elsewhere.

Either way, I really like the whole Sealand concept. I find it gutsy and
romantic and the stuff to make movies about. But I try to not base a
business on what feels good, but on what is practical, efficient and gives
me (and hence our clients) the best possible facilities and services for
the lowest possible price with the least possible hassles.
Indeed, I believe you are doing the same thing. Maybe you just didn't look
at the potential trouble Sealand might bring for your clients under the
aspect of effort and risk related to benefit and cost.

Now, if Sealand started issuing passports and establishing consulates and
trade missions, then that could make all the difference... (if they had
some more clear cut rules and regulations, that is).

Cheers,
Robert.

budget & privacy website hosting
http://www.cyberica.net
budget & privacy domain registrations + mail
http://www.u2planet.com/cfdomaintrust.html

  

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