LEGAL BRIEFS
While possibly the most valuable of the seminars offered at Internext, the legal seminars can also prove to be the most frightening. This particular seminar offered countless methods and guidelines that can save Webmasters from legal headaches and, quite possibly, jail time.LEGAL BRIEFS
While possibly the most valuable of the seminars offered at Internext, the legal seminars can also prove to be the most frightening. This particular seminar offered countless methods and guidelines that can save Webmasters from legal headaches and, quite possibly, jail time. The seminar covering several legal concepts for Webmasters on day one of Internext featured highlights from the following attorneys: Richard Chapo (AdultInternetLaw.com), Gordon Einstein (The Einstein Law Group), J.D. Obenberger (XXXLaw.net), and Lawrence Walters (FirstAmendment.com).
Einstein kicked off the seminar by touching upon the choices one must make when starting an adult business online. The most important choice, according to him, is deciding whether or not you want your new business to fall under the umbrella ownership of a limited liability company (an “LLC”) or remain a sole proprietorship. Under a sole proprietorship, the owner of an adult website can be held personally responsible – including financially – when being sued or when incurring debt. An LLC ensures that the company’s assets are on the line – not the owner’s. When making the decision about which form of ownership to take on, Einstein urged the businessperson to consult both an attorney and an accountant.
Following Einstein was an amusing and informative tongue-in-cheek presentation offered by XXXLaw.net’s Obenberger. Obenberger discussed major issues that can get an adult Webmaster thrown in jail. Most of the items were a matter of common sense, however, some could easily be overlooked by even an experienced adult Webmaster.
First on Obenberger’s list was a warning not to trust anyone without sufficient reason. Topping the list of things not to trust is unknown content from unknown producers that do not have model releases and proof of age certificates on file. Obenberger also warned against creating web sites that step over the line of decency, including, but not limited to, anything dealing with child pornography. Other areas to avoid are watersports (urination) and scat (feces). For his next point, Obenberger stated that business owners should never take members of their pay sites for granted. Overcharging, double billing and hidden charges are a sure-fire way to tick off customers (and land you in jail!). Negative word of mouth advertising is a perfect way to doom even an established online empire. Customer service remains a vital part of maintaining any company.
Walters also addressed beginning Webmasters, offering up 21 practical tips for those who are entering the adult market for the first time. “Educate yourself,” Walters stated several times. He also advised novices to develop a business plan. That business plan should include, in addition to typical items like securing capital, things such as identifying a niche. Knowing your audience and keeping focused are paramount to success. Walters also spoke strongly about taking a visible stand against allowing minors to access adult material. Newcomers to the world of adult web sites should also be aware of all applicable local laws. “Become an expert on obscenity laws,” said Walters, and he also urged Webmasters to become politically active. One final item for newcomers was to know that there are hundreds, if not thousands, of other Webmasters who entered the field earlier. Walters encourages newcomers to ask for advice and help from those who have experience.
Wrapping up the seminar was Chapo’s discussion of business contracts. Chapo urged all those involved in online business to have contracts. He also suggested that owners seriously consider incorporating their businesses. Doing so, said Chapo, is a “Good idea for both legal and tax reasons.” He added, “Separate the risk from the money. A proactive accountant is worth his weight in gold.”
Peter Dorsi, a graphic designer with over four years experience, helped launch the Cash.com web site. Before joining the Cash.com team, he worked for two other major adult companies. Peter can be reached by email at webmaster@cash.com.
