camming con 2014 - larry walters

Presented by:

Lawrence G. Walters, Esq. Walters

larry@firstamendment.com Law

WWW.FIRSTAMENDMENT.COM GROUPTM

WWW.WEBLAWNETWORK.COM

PRACTICAL LEGAL WORKSHOP FOR WEBCAM NETWORK OPERATORS AND LIVE CAM PERFORMERS

Current Legal Issues Facing Cam Models

• Ensure timely compliance with all immigration requirements• Carefully describe nature of

business activities• Keep paperwork up-to-date

--Current Legal Issues Facing Cam Models:1) Visa/Immigration/Workplace Issues

• Compliance with U.S. law essential for payment processors• Mainstream payment

processors may not be familiar with service• Acceptance of alternative

currency, cash out, etc.

--Current Legal Issues Facing Cam Models:2) Payment/Banking Issues

• Content control / standards• Legal agreement, policies• Negotiation?• Audits• Appeals/Contests• Liability• Penalties• Liquidated Damages• Suspension/Termination• Compensation• Frequency, method, currency, disputes

--Current Legal Issues Facing Cam Models:3) Studio/Network Relationship

• Carefully read waivers/releases/licenses• Intellectual property

ownership & allocation issues• Revenue sharing• Payment frequency, methods,

etc.

--Current Legal Issues Facing Cam Models:4) Cam Model Performance Agreements

• Age verification records generation• Other age-related records, urls,

copies of recordings, etc.• Records maintenance• Compliance with Section 2257

in U.S. vs. laws in other jurisdictions

--Current Legal Issues Facing Cam Models:5) Age Verification/Documentation/2257

Current Legal Issues Facing Cam Network &

Studio Operators

• Corporate entity options• Corps, LLC’s, DBA’s, LLP’s• Domestic or foreign formation• Tax/IRS issues• Asset Protection • Trusts, receiverships, etc.• Holding companies

--Current Legal Issues Facing Operators:1) Corporate Structuring/Asset

Protection/Tax

• Disclosures, Disclaimers, Promotions & Releases• Trade practices of third party

affiliates or advertisers• Adequate, obvious, and

conspicuous disclosures• Placement, appearance and

location of disclosures • Consumer protection goals

--Current Legal Issues Facing Operators:2) Trade Practices/FTC/Unfair Business

Regulation

• Records generation and maintenance• Implementation of Anti-Human

Trafficking Standards• Reporting requirements• Publication of notices and

resources

--Current Legal Issues Facing Operators:3) Age Verification/Documentation/2257

• Underage content• Friends, other models• Simulated v. actual underage material• Reporting obligations under Section 2258A

• Extreme behavior• Bestiality• Cutting• Breath play

• Level of control may impact §2257• Unauthorized third parties on cam• No acquisition of rights, 2257 info, releases

or ID’s

--Current Legal Issues Facing Operators:4) Content/Performance Controls on

Models

• Compliance with U.S. law for U.S. based payment processors

• Acceptance of alternative currencies

• Refund/charge back policies• Risk mitigation

--Current Legal Issues Facing Operators:5) Payment Processing/Alternative

Currencies

• Compliance with age verification and privacy policies in other jurisdictions

• International and local tax issues

• Impact of U.S. law on foreign operators and performers

--Current Legal Issues Facing Operators:6) Cross-border Legal Compliance

• Section 230 Immunity• Deals with defamation, publicity rights, and typical state

level civil disputes, excluding intellectual property and federal criminal prosecution

• DMCA Safe Harbor• Deals exclusively with copyright liability • Protects only the network operator

• User Agreements, Policies & Disclosures

• Section 2257 Labeling Obligations & Exemptions

• Copyright/Trademark/Domain Name Issues

--Current Legal Issues Facing Operators:7) Website Operation

Structuring the Legal Relationship Between

Models, Studios & Operators

• Who owns what?• Model owns: publicity rights, privacy rights,

commercial exploitation rights• Copyrights owned by either model or photographer,

can be assigned or retained and licensed• Network operator owns source code, domain name,

trademarks, copyrights to certain elements• Rebill rights, customer database• Model presumably owns trademarks, but can be

assigned or licensed• Danger area for models• Ensure discussion of right to use model’s real

name & character, persona or stage name ownership

Balancing Acquisition & Retention of Rights

• Must address all applicable:• Copyrights• Trademarks• Publicity Rights• Privacy Rights• Persona/Character Rights

Model Performance Agreement

• Scope

• Duration

• Media Limitation

• Geographic Restrictions

IP License: Important Considerations

• Non-compete

• Nondisclosure

• Non-solicitation

• Non-disparagement

Important Clauses Not To Be Forgotten

The Future of Camming: Legal Outlook

1. Register a unique character name with the USPTO

2. Maintain an electronic 2257 Age Verification database

3. Incorporate, Incorporate, Incorporate

4. Don’t escort5. Encourage acceptance of digital

currency

Top 5 Recommendations for Cam Models:

1. Carefully consider corporate structure

2. Accept digital currency3. Protect your IP4. Revamp web docs regularly5. Implement robust Age Verification

policies

Top 5 Recommendations for Network Operators

Q&A

Walters Law Group

Lawrence G. Walters

larry@firstamendment.com

800.530.8137

Skype: webatty

Follow Up Questions