Camming Con 2014 - Larry Walters

1. Presented by:
Lawrence G. Walters, Esq.
larry@firstamendment.com
WWW.FIRSTAMENDMENT.COM
WWW.WEBLAWNETWORK.COM

2. Current Legal Issues Facing
Cam Models

3. --Current Legal Issues Facing Cam Models:
1) Visa/Immigration/Workplace Issues
• Ensure timely compliance with
all immigration requirements
• Carefully describe nature of
business activities
• Keep paperwork up-to-date

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

5. --Current Legal Issues Facing Cam Models:
3) Studio/Network Relationship
• Content control / standards
• Legal agreement, policies
• Negotiation?
• Audits
• Appeals/Contests
• Liability
• Penalties
• Liquidated Damages
• Suspension/Termination
• Compensation
• Frequency, method, currency, disputes

6. --Current Legal Issues Facing Cam Models:
4) Cam Model Performance Agreements
• Carefully read
waivers/releases/licenses
• Intellectual property ownership &
allocation issues
• Revenue sharing
• Payment frequency, methods, etc.

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

8. Current Legal Issues Facing
Cam Network & Studio
Operators

9. --Current Legal Issues Facing Operators:
1) Corporate Structuring/Asset Protection/Tax
• Corporate entity options
• Corps, LLC’s, DBA’s, LLP’s
• Domestic or foreign formation
• Tax/IRS issues
• Asset Protection
• Trusts, receiverships, etc.
• Holding companies

10. --Current Legal Issues Facing Operators:
2) Trade Practices/FTC/Unfair Business
Regulation
• 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

11. --Current Legal Issues Facing Operators:
3) Age Verification/Documentation/2257
• Records generation and
maintenance
• Implementation of Anti-Human
Trafficking Standards
• Reporting requirements
• Publication of notices and
resources

12. --Current Legal Issues Facing Operators:
4) Content/Performance Controls on Models
• 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

13. --Current Legal Issues Facing Operators:
5) Payment Processing/Alternative Currencies
• Compliance with U.S. law for U.S.
based payment processors
• Acceptance of alternative currencies
• Refund/charge back policies
• Risk mitigation

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

15. --Current Legal Issues Facing Operators:
7) Website Operation
• 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

16. Structuring the Legal
Relationship Between Models,
Studios & Operators

17. Balancing Acquisition & Retention
• Who owns what?
of Rights
• 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

18. Model Performance Agreement
• Must address all applicable:
• Copyrights
• Trademarks
• Publicity Rights
• Privacy Rights
• Persona/Character Rights

19. IP License: Important Considerations
• Scope
• Duration
• Media Limitation
• Geographic Restrictions

20. Important Clauses Not To Be Forgotten
• Non-compete
• Nondisclosure
• Non-solicitation
• Non-disparagement

21. The Future of Camming:
Legal Outlook

22. Top 5 Recommendations for Cam Models:
1. Register a unique character name
with the USPTO
2. Maintain an electronic 2257 Age
Verification database
3. Incorporate, Incorporate, Incorporate
4. Don’t escort
5. Encourage acceptance of digital
currency

23. Top 5 Recommendations for Network Operators
1. Carefully consider corporate structure
2. Accept digital currency
3. Protect your IP
4. Revamp web docs regularly
5. Implement robust Age Verification
policies

24. Q&A

25. Follow Up Questions
Walters Law Group
Lawrence G. Walters
larry@firstamendment.com
800.530.8137
Skype: webatty