For the current model of the internet to prosper, yes, it would. Many of the internet's most optimistic fans have prophisised that the Internet (or a global network very like it) would be one of the keys to breaking down international barriers though - creating an international law globally accepted could be the snowflake that starts that avalanche.

Let's face it though - in today's climate this would never happen. Our nations are too far away from truly co-operating so how would this sort of law really work?

I believe that we'd end up with the 'AOL effect' - each country would own and operate it's own national network governed by it's own laws and hooked up to the global internet for access. Censorship, prosecution and conditions would push Internet companies into favourable territories much the same as what happens in the pirate community right now.

Pessimism or realism? I can't quite decide right now.