Expert: Dan Pepper - 12/10/2008

Question
Hello,

I live in the LA area and with a business partner would like to start an adult film production company, but do not know where to get information on legal paperwork, where to sell and promote our short videos, and prices ranges we should be asking for.  Myself I have several years of sales experience and my partner has experience with pre and post production,  we have very high quality lighting and all HD equipment

Answer
Chris,

You have a number of very broad questions which are impossible to fully answer here.  Let me do my best at giving you some direction:

1.  For legal documentation and other legal requirements, you'd need to consider:

a.  Model release agreements for your talent
b.  Obtaining workers' compensation for your talent if your talent will be employees
c.  A content license agreement, if you are licensing your content to affiliates or other third parties.
d.  Compliance with the federal record keeping requirements, commonly referred to as the "2257" requirements.

Depending upon how you plan on recruiting your talent, you'll need to ensure that you do so legally, so as not to violate applicable pandering or solicitation of prostitution laws.

You did not indicate whether or not you plan on distributing or hosting your content online, but if so you'll need to consider:

e.  Website terms and conditions, as well as a privacy policy
f.  Traffic referral programs terms for any affiliates
g.  Acceptable use policies for bulk mail for any affiliates
h.  Appropriate 2257 notice(s).

This is just a broad outline - there may be other requirements your particular operation may require.  Other matters like copyright and trademark protection, and other corporate governance matters have not been discussed.  You can also find some good information on my website at www.adultwebsitelawyer.com.

2.  Where to sell and promote your short videos.  This really depends upon the nature of your content and your niche.  Visit sites like xbiz.com, ynot.com, and adultwebmasterhangout.com where you can pick up a lot of good information on these topics.  Using the discussion boards can be very helpful.  Strong affiliate programs are typically key to traffic and conversions.

3.  Price ranges.  Are you talking about what to pay your talent or what to charge for your content?  Each has huge price ranges depending upon what your business is doing - are you launching a pay site?  a free site?  producing content to license others?

As I tell everyone looking to get into this business, it would be foolish to go into it without retaining a qualified lawyer that can assist you with these matters.  Getting it wrong can mean thousands of dollars in fines as well as jail time.