Interesting Legal Puzzle #1: GrandCentral Bug

I have run into more than a few legal puzzels in my time that would be completely straightforward...until "the Internet" is dropped into the mix.

One that crossed my mind recently is the legality of recording phone calls when using GrandCentral.

Normally, as long as one party to the calls knows about the recording it is legal (so if one of the parties initiates the recording, notification is defacto).  This is the federal statutory requirment, and the requirment of most states.

However, some states require both parties to be notified (which is why you get the message about recording for "quality assurance" purposes during many business calls).  California is one of these states.

Now, lets say I use an internet based phone system like GrandCentral (a Google beta service) and my GrandCentral Number is a California area code.  Anyone who is calling me would assume they are calling California and that California rules would apply.  But, GrandCentral has a recording function that works just fine without notification, even calling a California number. And, in fact, the call may never be completed anywhere near California.  It gets handled by GrandCentral and may ring my mobile (or landline) phone anywhere in the world.  Maybe I take the call in Alaska (no two party notification requirement). Am I breaking California law if I record it?  What if I take the call in Singapore where I could go to jail for recording...? But, of course, the actual recording is taking place at a Google facility - who knows where?  Maybe the facility is in California (breaking the law?).  Maybe it's in New York (no two party requirment - so is it legal?).  Who the heck knows?  Nobody...that's who.

We can toss this on the heap of stuff that will not be decided without a test case in every state and every Federal district.

It also would make a good addition to the Internet law book I'll never write.