In reviewing Yahoo's claim for declaratory relief, the Court applied a three-part version of the "Calder" test to determine if the effects of LICRA's action were sufficiently directed at California to establish personal jurisdiction, including whether the defendant: 1. committed an intentional act; 2. expressly aimed at the forum state, and 3. causing harm that the defendant knows is likely to be suffered in the forum state. Focusing on the French Court's orders, the Ninth Circuit found that compliance would require Yahoo! to perform significant acts in California as the servers supporting yahoo.com, which would have to be modified for compliance, were located in that state, thus fulfilling the first two prongs of the test. Although the penalties contained within the orders had not been enforced and the companies were in substantial compliance, the court found that the threat of future enforcement and the "very existence" of the orders constituted "harm" under the third requirement of the "Calder" test.