Expert: Dan Pepper - 8/18/2010

Question
I am currently (long term) working on starting an adult production company in California. I have been spending lots of time on putting a proper business plan together. I am currently trying to figure profit and loss. I have broken the final product into 3 stages. The first stage is to set up an affiliate website to see where (what niches) people are paying for and who is producing content people are paying for.  Our  website is marked for “adults only however except for language any banners and pictures that lead to 3rd party websites are going to contain no nudity, so no nudity on our entire website. I know you can tease people over without nudity. All links will then lead to the 3rd party website. I am using reputable companies. If I contain no nudity on my site do I still have to have a 2257 statement on my website as not being the primary producer and stating who is and their custodian of records? I have read both laws dealing with 2257 and I know these 3rd parties have the statements on there sites that people will be linked to.

Answer
Christian,

I would first recommend you read http://www.justice.gov/criminal/optf/guide/2257-compliance-guide.html to get a handle on what type of content is governed by the regulations.

The requirements apply in full to any visual depiction of actual sexually explicit conduct produced after July 3, 1995, either by a primary producer or secondary producer, with the exception of visual depictions of lascivious exhibition of the genitals or pubic area of a person ("lascivious exhibition"). The requirements for depictions of lascivious exhibition apply only to depictions produced after March 18, 2009. Likewise, the requirements for visual depictions of simulated sexually explicit conduct apply only to depictions produced after March 18, 2009.

Simulated sexually explicit conduct is conduct engaged in by performers that is depicted in a manner that would cause a reasonable viewer to believe that the performers engaged in actual sexually explicit conduct, even if they did not in fact do so. It does not mean sexually explicit conduct that is merely suggested.