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A Summer of Really Big Rulings
XBIX - August 2010

From time to time there are rulings in court cases that dramatically affect the entire adult entertainment industry. One such ruling, for example occurred in December of 2006, when a federal judge in Colorado ruled the 2257 regulation’s old secondary-producer requirements to be unconstitutional. That case provided a large number of Free Speech Coalition members who would have been subject to the regulations as secondary producers a nearly three-year reprieve from the onerous provisions until new regulations could be properly enacted by Congress and promulgated by the Department of Justice.
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New Senate Legislation Would Ban Certain Internet Sales Practices

XBIZ JULY 2010

On May 19, 2010, Senator John D. Rockefeller, Chairman of the U.S. Senate Committee on Commerce, Science, and Transportation, introduced legislation that may have a very significant impact on Internet retailers, particularly those offering services or goods via what is termed a “negative option” offer, a sales method that is very commonly used by adult online merchants.  

 

For those unfamiliar with the practice, negative option sales generally refer to offers in which goods or services are sold to a consumer automatically unless the consumer takes some specific action to decline the sale in advance of billing.   This sales method covers a variety of techniques and can take just about any form where a consumer must take an affirmative action to say “no” to an offer (such as un-check a pre-checked box) to prevent a sale.   Some common examples of negative option sales currently in use in the online adult entertainment industry involve sales of memberships after free or reduced cost “trial” memberships, cross-sales of memberships to additional sites, sales of upgraded or premium services, and sales of additional live chat minutes.

 
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2257 pdf
FULL ACROBAT PDF 2257 REGS
 
Live Cam Rules! (and Regulations)
XBIZ June 2010

Live adult videoconferencing is big, and getting bigger.   Online consumers now purchase enough live cam show minutes to support thousands of regular live cam performers each day. Capitalizing on this ever-increasing demand for live adult content, more and more pay sites are including live chat up-sell options.   Additionally, many of the most recognizable adult brand name companies now have their own private labeled version of a live chat site provided by one of the major live chat companies, such as Video Secrets. 
 
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  • It's All About Rights
    Every adult entertainment company that produces or exploits content, or operates under a brand name is in the business of exploiting intellectual property rights. In fact, it would be accurate to say that the principal product of the adult entertainment industry is intellectual property. Because of this fact, I have always strongly encouraged my adult business clients to think of themselves not only as providers of erotic entertainment, but also as business persons who create and exploit a special form of property recognized by the law, that is called “intellectual property” or sometimes, “intangible property.” A fundamental part of the process of any such creation or exploitation of intellectual property, however, is the acquisition of the intellectual property rights in the first place. And that is most often accomplished through the proper use of welldrafted intellectual property rights acquisition agreements.
  • FSC Anti-Piracy Update and Analysis
    What can we draw from FSC’s Anti-Piracy Action Program’s first months?
  • Porn, Privacy, HIPAA - Redux
    In February, the AIDS Healthcare Foundation took their fight against AIM and the adult industry to the authorities of the federal Office for Civil Rights, a federal agency under the U.S. Department of Health and Human Services that enforces HIPAA, the California Office of Health Information Integrity enforcement Unit and Los Angeles County’s Health Facilities Inspection Division.
  • Trouble With .XXX
    In a reversal of position, ICANN has decided to authorize ICM Registry to offer and oversee a new “.XXX” TLD regime. Whatever you may think of ICANN’s decision, for now it’s a reality to be dealt with. So the question becomes whether you, as an owner or operator of adult websites, should participate in this, eh hum, brave new world.
  • Live Cam Rules (and Regs)
    Live adult videoconferencing is big, and getting bigger. Online consumers now purchase enough live cam show minutes to support thousands of regular live cam performers each day.

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