This form of international agreement is extremely rare as it contractually allows a foreign law to encroach upon the territory of the host state.
A home-country rule agreement means that while a foreign national or foreign corporation operate within the jurisdiction of the other signatory to the home-country rule form of international agreement, in regards to his actions or commerce in the host country, the individual or the corporation cannot be regulated, prosecuted or sued in the host country by their courts but must be prosecuted or sued by and in the home country and with reference to the home-country's law.
Thus, the host country relinquishes its jurisdiction over the foreign national, in favor of the courts of the relevant foreign or home-country.
Further, subspecies of home-country rule models have been developed in international law reflecting a scale of home-country rule such as the application of home-country rules only where they are equivalent to host-country rules.
REFERENCES:
- Duhaime, Lloyd, Dictionary of International Law
- Duhaime, Lloyd, Legal Definition of Diplomatic Immunity
- Duhaime, Lloyd, Legal Definition of Formal Reciprocity
- Duhaime, Lloyd, Legal Definition of National Treatment
- Duhaime, Lloyd, Legal Definition of Reciprocity
- Handa, S., Copyright Law in Canada (Toronto: Butterworths, 2002).