US Court: SEO firms liable for legality of clients' behavior

[Affiliatesmart]

If you provide SEO services for shady clients, the illegal nature of their business can extend liability to your business as well. Question: What if the true nature of your client's business is hidden from you? OR... its legal in your jurisdiction but illegal in a third party's jurisdiction?

Source: http://www.internetretailer.com/2011...nterfeit-goods

A federal court has ruled that a firm that provided marketing and web hosting services was financially responsible for the sale of counterfeit golf clubs by a client e-retailer.

A federal judge in South Carolina entered a judgment against Bright Builders Inc. on counts of contributory trademark infringement and unfair trade practices for allegedly assisting in the construction and hosting of the e-commerce site CopyCatClubs.com. Judge Margaret B. Seymour of the U.S. District Court for South Carolina ordered Bright Builders to pay $770,750 in statutory damages and Christopher Prince, owner of the web site, $28,250, according to lawyers for the plaintiff, Cleveland Golf Company Inc.

[Simmo!]

That sounds a bit odd to me. Is there any odd circumstances like a guy being a director of both companies or something? If it is simply a case of you provided services to help a company and so you are liable for them being crooks then every business in America could be in trouble!