This chapter examines the Internet and law relationship. Using rules and decisions on ISP liability for civil defamation to illustrate, the chapter attempts to identify and proffer solutions to the challenges posed by the Internet to law. It suggests legal recognition of the distinctive nature of the Internet by policy makers and administrators as the key to addressing the legal issues continually raised by the Internet with the result that appropriate legal strategies would be applied to the Internet. The chapter also advocates international legislative action on the Internet issues. Law, including its substantive and procedural contents, interpretation and administration, is an important factor for encouraging or hindering continued Internet development.