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Presented by: 
Lawrence G. Walters, Esq. 
larry@firstamendment.com 
WWW.FIRSTAMENDMENT.COM 
WWW.WEBLAWNETWORK.COM
Current Legal Issues Facing 
Cam Models
--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
--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.
--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
--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.
--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
Current Legal Issues Facing 
Cam Network & Studio 
Operators
--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
--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
--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
--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
--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
--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
--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
Structuring the Legal 
Relationship Between Models, 
Studios & Operators
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
Model Performance Agreement 
• Must address all applicable: 
• Copyrights 
• Trademarks 
• Publicity Rights 
• Privacy Rights 
• Persona/Character Rights
IP License: Important Considerations 
• Scope 
• Duration 
• Media Limitation 
• Geographic Restrictions
Important Clauses Not To Be Forgotten 
• Non-compete 
• Nondisclosure 
• Non-solicitation 
• Non-disparagement
The Future of Camming: 
Legal Outlook
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
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
Q&A
Follow Up Questions 
Walters Law Group 
Lawrence G. Walters 
larry@firstamendment.com 
800.530.8137 
Skype: webatty

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Camming Con 2014 - Larry Walters

  • 1. Presented by: Lawrence G. Walters, Esq. [email protected] 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 [email protected] 800.530.8137 Skype: webatty