Demon Internet Ltd says it will appeal against the judgement by the High Court that says the UK ISP is responsible for hosting libelous messages. The judgement could open the floodgates for hundreds of similar cases.

In the latest stage of the court battle between Demon, owned by Scottish Power, and Laurence Godfrey, a university lecturer, the ISP was told its defense of ‘innocent dissemination’ – used by bookshops, printers and ISPs — did not apply. The case hinged around the fact that Godfrey had informed Demon that it was hosting libelous material, and Demon refused to remove it on the grounds that it was not its responsibility to do so.

Demon now claims that ISPs all over the UK are open to libel claims, and that the countryÆs e-business could suffer as a result of seemingly draconian laws. WhereÆs it going to stop? asked a Scottish Power spokesperson, UK business could end up losing customers hand over foot.

Godfrey filed a successful suit against the writer of the offending message, which was posted to the newsgroup soc.culture.thai earlier this year. A court awarded 15,000 pounds ($24,000) against Michael Dolenga, a Canadian college student, who refused to accept the British courtÆs jurisdiction on the matter. The original conflict arose when Godfrey allegedly made remarks concerning CanadaÆs national identity, and Dolenga responded with abuse of a more personal nature.

It is not the first time Godfrey has pursued such a course of action. He has made a number of similar and successful suits over the past five years, in New Zealand and Australia. A Scottish Power spokesperson described Godfrey as a character.