A French court has heightened the threat of cyberliability this week after issuing a gagging order on internet service provider Yahoo! Inc

Yahoo! Inc has been given until July 24 to report back to the French court on what measures it will implement to ensure that the French cannot participate in sales of Nazi memorabilia, which is hosted on one of Yahoo's sites.

Leading fraud solicitor Steven Philippsohn said the court's actions was proof that the internet faced the same constraints as traditional paper publications.

"The law is catching up with online publishers at a rapid pace," he said.

The case is the latest in a string of similar actions taken against ISPs.

Demon recently paid £250,000 to settle a case in the US after defamatory remarks were posted on a news group it hosted.

The posting was made by an unknown person in the US who was not a Demon customer.