15. In general, the impact or severity of cyber effects will be evaluated in the same manner and according to the same criteria as for physical activities. Cyber activities that rise above a level of negligible or de minimis effects, causing significant harmful effects within the territory of another State without that State’s consent, could amount to a violation of the rule of territorial sovereignty with respect to the affected State. It is also important to note that cyber activities with effects in another State do not constitute physical presence in the territory of that State. As such, territorial sovereignty is not violated by virtue merely of remote activities having been carried out on or through the cyber infrastructure located within the territory of another State. Furthermore, cyber activities carried out remotely from within Canada with negligible effects in a foreign State do not involve an extraterritorial exercise of enforcement jurisdiction by Canada. 16. Cyber activities that cause a loss of functionality with respect to cyber infrastructure located within the territory of the affected State may also constitute a violation of territorial sovereignty if the resulting loss of functionality causes significant harmful effects similar to those caused by physical damage to persons or property. For example, a violation of the territorial sovereignty will occur when the cyber activity creates a significant harmful effect that necessitates the repair or replacement of physical components of cyber infrastructure in the affected State. The loss of functionality of physical equipment that relies on the affected infrastructure in order to operate could also form part of the violation. The assessment of the effects includes both intended and unintended consequences that reach the threshold required to trigger a violation. 17. The rule of territorial sovereignty does not require consent for every cyber activity that has effects, including some loss of functionality, in another State. Activities causing negligible or de minimis effects would not constitute a violation of territorial sovereignty regardless of whether they are conducted in the cyber or non-cyber context. Nor are States precluded by the rule of territorial sovereignty from taking measures that have negligible or de minimis effects to defend against the harmful activity of malicious cyber actors or to protect their national security interests. For example, Canada considers that a cyber activity that requires rebooting or the reinstallation of an operating system is likely not a violation of territorial sovereignty. 18. The other key basis for assessing a violation of territorial sovereignty is whether a cyber activity interferes with or usurps the inherently governmental functions of another State. Cyber activities that have significant harmful effects on the exercise of inherently governmental functions would constitute an internationally wrongful act. For Canada, this would include government activities in areas such as health care services, law enforcement, administration of elections, tax collection, national defence and the conduct of international relations, and the services on which these depend. There can be a violation of territorial sovereignty by way of effects on governmental functions regardless of whether there is physical damage, injury, or loss of functionality. An example would be a cyber activity that interrupts health care delivery by blocking access to patient health records or emergency room services, resulting in risk to the health or life of patients. 3/14