Expert: Jim Boyd - 12/7/2007

Question
Hello Jim beforehand thank you for taking the time to read my posting. I recently decided to start an adult film production company. So far i have had some success getting some experienced and non experienced performers to consider my upcoming projects although as i have read and looked more into the eindustry i believe i need more guidance in production, marketing and the legal aspects of the business. Would you be able to guide me or perhaps refer me to a established adult industry lawyer so i can get them to review or re type release and consent forms, also would it be wise for me to market my own productions or to start should i sell the videos to established production companies for them to find distributors? or how do i go about finding a distribution company and could you more or less tell me what is the normal margin of profit for such distribution companies as well....as you can tell i am fairly new to this industry and i do not want to find myself making any major mistakes. I already have a good camera man with his own equipment as well as a good editor. Again i appreciate any inputs you might be able to offer regarding this new business venture.

Sincerely,

Juan S.

Answer
Hi Juan,

First off, unless you live in California or plan to travel there to do your filming, you can NOT legally produce Adult Films. This is because the ONLY place in the U.S. where it is legal to produce Adult Films in the State of California.

Adult film production is legal in California due to a president created by a 1988 decision of the California Supreme Court (California vs. Freeman). As a result of that decision, California became the FIRST AND ONLY state where a person can be legally hired to have sex for the purpose of making adult films. However; producers are still required to obtain permits before starting any such production. NO OTHER STATE HAS SUCH A PRECEDENT!

It is simply ILLEGAL to make Adult Films anywhere else in the United States. Sex in exchange for money regardless of reason, or circumstance, is considered prostitution in ALL states. California just happens to be the ONLY one to make allowances for adult film production. While it is true there are companies who make films in other states, they do so contrary to law and are subject to arrest and face charges ranging from prostitution to pandering (pimping) if caught.

Secondly, there are the Federal Laws that apply to ALL Adult Material. Specifically USC Title 18 Section 2257 and CFR Title 28 Part 75. These Laws place a large amount of responsibility on the produces of Adult Films and are full of legal pitfalls. DO NOT even think about trying to make a film until you have researched, understand, and can fully comply with theses laws.

Also there are issues such as Model releases, copyrights, STD testing for your talent and other things that need to be researched. I would strongly suggest you talk with an Attorney who specializes in Adult Industry Law and listen very closely to EVERYTHING he/she has to say.

Unfortunately, I do not make a habit of recommending Attorney’s as I have had a full time a staff Attorney for the last 7 years and simply do not know anything about the business practices of other Attorneys. I NEVER recommend people I haven’t done business with to others.

Now, when you have everything in order legally, and have a finished film, you are ready to have it duplicated, labeled and packaged. This is perhaps the most expensive part of film production, and will put a major dent in your funding. There are several companies who do this kind of work and nearly all of them have a “minimum order” of 1,000 or so dups. They all have web sites and are relatively easy to find.

Now, at this point your legal issues have been addressed, duplication and packaging are done and you have a pile of DVDs ready to go out to the public. There are a couple of ways to do this:

1) Get a website and market the product yourself. This is the best option when first starting out, and the least difficult. However, it does require a good understanding of internet marketing, a good web designer and a sizable investment of funds.

2) Make a deal with a distribution company. Not, recommended for beginners and most of them wont give you the time of day unless you are an established producer.

That’s pretty much all of the basics in one quick and easy lesson. I’m sure it is much more information that you bargained for. Most people do not realize all of the issues involved in this Industry, and if someone tells me they want in, I feel obligated to let them know what they really getting themselves into.

PLEASE understand that this IS NOT a quick/easy money business. If you do venture into the Industry, it may take quite some time (and several successful films) before you recover your original investment much less make a profit.  

I hope this was helpful.

Jim Boyd