Expert: Dan Pepper - 7/21/2008

Question
Good Morning sir.

Well, the question is simple and one i know you've seen a dozon times.

How (or better yet, where) do i start?  I have the equipment, over $5k in cash w/possibly more cash backing if i really need it.....and a number of women who are willing to participate but how and where do i begin making films in the washington/baltimore area?  and by this i mean, license, permits, etc.  i would hate to finish out with a criminal wrap after my 1st film.

Answer
The first step is to definitely get educated about the business - research, research, research!

There are a lot of good resources out there to learn what works, what doesn't, and how to stretch your dollar.  $5K isn't a lot of money in this business, but there are certainly ways to get yourself going with that.

I would start with looking at websites like rayscorner.com, which sells a great video on how to get going quickly with not a lot of money.  Also check out the discussion boards on sites like xbiz.com and ynot.com, and learn what has worked for others.

As you've probably seen through either my posts or elsewhere, the only state in the country where it is affirmatively legal to produce and distribute pornography is California.  If you want to shoot and distribute your content in the Washington/Baltimore area, you run the risk of violating local obscenity, prostitution, pandering, and similar laws.  There are no licenses or permits in this area to do this sort of work.

There are a number of issues and areas you should address.  If you haven't already done so, you should start by forming a business entity that will protect your personal assets.  The type of entity, and the jurisdiction in which to form it, will depend upon various factors about your personal situation.

Regarding documentation and other requirements, you'd need to consider:

1.  Model release agreements for your talent
2.  Obtaining workers' compensation for your talent
3.  A content license agreement, if you are licensing your content to affiliates or other third parties.
4.  Compliance with the federal record keeping requirements, commonly referred to as the "2257" requirements.

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

1.  Website terms and conditions, as well as a privacy policy
2.  Traffic referral programs terms for any affiliates
3.  Acceptable use policies for bulk mail for any affiliates
4.  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.

It would be foolish to enter this business 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 (as you rightly are worried about).