Currently: URIs encode bytes, not characters
Most ASCII bytes expressed as ASCII chars, other byte values as %HH
No standard way to use non-ASCII characters (no defined character encoding)
Converging to use UTF-8 (implemented in IE 5.0)
Up to date references:
Internationalization of URIs and other identifiers http://www.w3.org/International/O-URL-and-ident.html
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