Duffer on the Links
I suppose it should be obvious, given that Google does it so prolifically, that linking from one site to another is a non-issue legally. Still, occasionally a less-than-geeky supervisor may idly question the legality of linking. If this happens to you, direct them to:
Michael Geist, Internet Law in Canada, 3rd ed. (Concord Ont: Captus, 2002) pp. 473-492, and
Teresa Scassa and Michael Deturbide, Electronic Commerce and Internet Law in Canada , (Toronto: CCH, 2004) pp.355-374.
These Canadian authorities agree that the main area of action has been copyright infringment. Links that do not automatically activate, and which do not seem to expropriate ownership of a work (as framing may), are OK. Deep links (those not to the home page) may raise other issues (such as trademark dilution), but in fact, as Simon Fodden pointed out, such clams claims have not been supported by any court so far.
In Canada, the main case on point is Tariff 22, Internet (cited as SOCAN Statement of Royalties, Public Performance of Musical Works 1996, 1997, 1998 (Tariff 22, Internet) (Re)] 1 C.P.R. (4th) 417.)
Other decisions cited in the titles above are:
Shetland Times Ltd. v. Dr. Jonathan Wills [1997], FSR 604 (Ct. Sess.),
Intellectual Reserve, Inc. v. Utah Lighthouse Ministry, Inc., 75 F. Supp. 2d 1290 (C.D. Utah 1999),
Universal City Studios, Inc. v. Reimerds, 2000 U.S. Dist. LEXIS 11696 (S.D. N.Y. 2000),
Universal City Studios, Inc. v. Corley, 273 F.3d 429 (2nd Cir. 2001),
Kelly v. Arriba Soft Corp, 280 F.3d 934 (9th Cir. 2002), and
Ticketmaster Corp. v. Tickets.Com, Inc., 2000 U.S. Dist. LEXIS 4553 (C.D. Cal. 2000).

See also http://www.michaelgeist.ca/index.php?option=com_content&task=view&id=1297
I hope that John Gregory will be posting on the collective wisdom coming out of his list-serv on these issues.