Expert: Dan Pepper - 8/2/2010

Question
Good Afternoon Dan,

My wife and I are starting a adult film company and I was hoping you could point us in the right direction of what we will need to get started.

Answer
Jason,

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.  A content license agreement, if you are licensing your content to affiliates or other third parties.
4.  Compliance with the federal record keeping requirements pursuant to 18 USC 2257 and 28 CFR 75.

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:

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.