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Delivering Weekly Censorship Updates to the Adult Entertainment Industry Vol. X, No. 25, June 29, 2007 - A Member Service of the Free Speech Coalition Stories without byline submitted by FSC contract writer, Scott Ross Contributing writers: Matt Gray and Dave Grimaldi X-Press Editor-in-Chief: Scott L. Lowther Special thanks to Cubik Corp. for formatting and Val Vizmanos for distribution Copyright 2007 Free Speech Coalition. Permission to reprint granted to FSC members; please give credit. AB 1551 Set for First Hearing Monday SACRAMENTO, CA - California Assembly Bill 1551 has now been set for its first hearing on Monday, July 9, 2007 (date subject to change).. The measure, by Assemblyman Chuck Calderon (D-Whittier), fabricated claims that adult entertainment venues cause adverse so-called "secondary effects," and seeks to impose a tax upon all adult entertainment businesses and products to ameliorate those effects. The tax, the amount of which is unspecified as of now, will occur multiple times on the same product. For example, taxes will be applied both to inventory and in retail at the point-of-sale. In fact, the bill proposes that every time an item changes hands a tax will be collected. Services will be taxed based upon gross receipts. The hearing will be at the State Capitol building in Sacramento, before the Assembly Revenue and Taxation Committee, and begin at 1:30pm in Room 126. Free Speech Coalition lobbyists and representatives will be present to renew earlier objections to the passing of this proposed legislation. As has been previously reported, this bill has far-reaching, negative consequences to the adult entertainment industry nationwide if it passes. We will keep FSC members posted of the outcome. ASACP Announces 'Restricted to Adult' Site Label LOS ANGELES CA - Association of Sites Advocating Child Protection (ASCAP) has introduced a new voluntary website label that will make it easier for web filtering software to block out adult content, an effort intended to prevent minors from accessing adult material on the Internet. "Everybody is concerned about what their children are doing on the Internet," stated ASACP executive director Joan Irvine at a press conference held last week's Erotica LA convention. "Therefore, we are pleased to announce the 'Restricted To Adult' — RTA — website label." RTA was conceived as a free "metatag" — a string of numbers and characters to be embedded in the headers of adult Web pages — which can be recognized by a wide variety of software filter programs. "For the first time, an unprecedented coalition of the adult entertainment industry, free speech advocates and parental filtering software companies have come together to protect our children," Irvine said. "We have assembled this group of people and created the RTA label, and now we're talking to companies, along with our group here today, to recognize the RTA label." The group to which Irvine referred includes some of the most powerful figures in the adult Internet community. Among the initiative's "Platinum" sponsors are AVN Media Network, XBIZ, Playboy.com, AdultFriendFinder.com, Epoch, Livesex.com, ATKingdom.com and NationalNet. "It underscores the adult industry's interest in child protection," Irvine explained. "However, RTA is just like any other parental filtering tool; parents need to be involved." Irvine said that she had been talking to and corresponding with federal legislators to inform them of the RTA program and to solicit their support for the project. http://avn.com/index_cache.php?Primary_Navigation=Articles&Action=View_Article&Content_ID=291148 FBI Inspects Filmco Productions 2257 Records SUN VALLEY, CA - Federal Bureau of Investigation agents visited Filmco Productions last week to inspect 2257 records for five titles from Filmco and Bacchus Releasing. Filmco General Manager Steve B. told AVN.com that five of six arrived at his office at approximately 11 a.m. last Tuesday. "They spent about three hours looking through the records. It turns out that the older women Filmco shoots are really older women," he said. Filmco is known for its specialty titles featuring older women, whereas Bacchus releases gay and TS titles. The FBI's visit to Filmco marks the third 2257 records inspection to take place in recent months. Agents visited the home of former Moonlight Entertainment head, Mark Stone, on May 3rd, and inspected records for Hollywood-based JT Video on June 1st. "They were very polite and professional," Steve said. "All went well. They asked for directions to a restaurant, packed up and left." http://avn.com/index.php?Primary_Navigation=Articles&Action=View_Article&Content_ID=291003 First Convictions for Porn Spam Under CAN-SPAM Act Obtained PHOENIX, AZ - Jeffrey Kilbride of Venice, Calif., and James Schaffer of Paradise Valley, Ariz., became the first individuals to be convicted for sending unsolicited sexually-explicit emails under the Controlling the Assault of Non-solicited Pornography and Marketing (CAN-SPAM) Act of 2003 earlier this week, when the pornographic spammers were convicted by a federal jury of two counts of violating the CAN-SPAM act. In addition, both men were also convicted on related charges that include conspiracy, fraud, and transportation of obscene materials. Kilbride and Schaffer began their spamming operation in 2003, sending out mass amounts of e-mails embedded with explicit images that contained a link to a commercial adult website, which paid the spammers a commission for traffic. The duo, who face a September sentencing, made $2 million from adult website operators who paid them for generating traffic to their sites. When the CAN-SPAM act became law in 2004, the two used international servers and mismatching "reply to" and "from" addresses, making it difficult to trace the spam e-mails, and leading to their violation of the anti-spam law. The other violation of the CAN-SPAM Act occurred when Kilbride and Schaffer sent e-mail messages using domain names that had been registered using a false identity. The two face a maximum penalty of five years in prison for each CAN-SPAM and obscenity offense, as well as a fine of up to $500,000 and a maximum of 20 years in prison for related money laundering. Kilbride and Schaffer initially were charged in 2005. Schaffer also was charged with 2257 violations, after officials discovered that he had not maintained appropriate records for the adult performers featured on Boobs.com, CumShots.com and FaceSat.com, three websites he operated overseas through The Compliance Company and Ganymede Marketing. http://www.infoworld.com/article/07/06/26/two-convicted-for-porn-spam_1.html Calif. Senate Committee Rejects Porn-Reporting Bill SACRAMENTO, CA - A proposed bill that would have required computer technicians to report pornographic images of children they find while fixing a machine died in the Senate Public Safety Committee last week. The bill, which was sponsored by Assemblywoman Cathleen Galgiani (D-Stockton) would have taken an existing law requiring film developers to report child porn and applied it to computer-repair personnel. It passed the Assembly by a 73-0 vote last month. Opponents of the bill claimed that broadening the law could invade the privacy of computer users and could lead to laws requiring other occupations to also become reporters of suspected lawbreaking. Galgani plans to put the bill up for reconsideration, her spokesman Robin Adam told XBIZ. "People may have had some concerns that can be addressed," he said. "There's always a concern about privacy and liability. A person may make an incorrect judgment on something that's reported, [but] the mandatory reporter merely reports something suspicious that looks suspicious to them. It's up to legal authorities to make a determination on that, and being a mandatory reporter actually gives them coverage." Six states — Arkansas, Michigan, Missouri, Oklahoma, South Carolina and South Dakota — currently require computer technicians to report illegal photos or movies. A similar bill died in the Senate Public Safety Committee last year. http://xbiz.com/news_piece.php?id=23702 Southern California City Denies Condom Revolution Permit HERMOSA BEACH, CA - The Hermosa Beach Planning Commission denied a permit request last week from adult retailer Condom Revolution at a meeting crowded with citizens protesting against allowing the store to open, according to XBIZ. Citing that the company had misrepresented itself as a conventional retail business, the commission unanimously turned down the permit. The commission also cited details of the city's zoning laws which state that a permit would be allowed for a retail business, so long as not more than 20 percent of its merchandise was adult-related, while 80 percent remained nonsexual in nature. The company has a right to appeal and an attorney representing Condom Revolution's parent company, Auburn, Wash. - based Peekay Inc., said that they would consider an appeal. The three-hour meeting was attended by an attorney for the city and a packed house of Hermosa Beach residents intent on preventing the permit from being issued to Condom Revolution. As many as 40 speakers went before the commission to discuss the types of merchandise that would be sold at the store. Earlier this week, city residents staged protests outside of the proposed location at Eighth Street and Pacific Coast Highway, and at Hermosa Beach City Hall, chanting and carrying signs. http://xbiz.com/news_piece.php?id=23716 EXECUTIVE DIRECTOR COMMENTS ON MEMBER-DRIVEN FUNDRAISING By Diane Duke What began with a simple call from Legendary Lars of AdultFriendFinder.com (AFF), stating that they would like to help the Free Speech Coalition (FSC) raise funds for its continued efforts with 2257, has evolved into a powerful tool in fighting government oppression and intrusion. AFF and its parent company, Various, Inc., not only initiated a fund-raising effort FSC on the website www.gfy.com, but also agreed to match donations up to $10,000. Platinum Dave of Platinum Bucks stepped up to donate $10,000 — to meet AFF's match and join in the efforts to diminish or defeat 2257. He recognized that support from the industry is critical in FSC's success. Just as the dust was settling, the folks from HotMovies.com came forward with yet another $10,000 donation—this on the heels of a fundraiser from HotMovies.com that netted nearly $20,000 for Free Speech Coalition just two months earlier. The leadership exemplified by these companies is truly inspirational. When thanked for the donation, the response from these companies was identical: they believe that everyone should take part in this effort and they hope that their donations will encourage others to do the same. At a time when many step up to identify problems, it is the great ones who participate in solutions. Thank you AdultFriendFinder, Platinum Bucks and HotMovies. If you would like to contribute to FSC's continued efforts to fight 2257, feel free to call me at 818-348-9373 or email me at diane@freespeechcoalition.com. Senate Sees Through Blinder Rack Legislation By Matt Gray Logic and reason prevailed Tuesday, with a victory for free speech, when on a partisan vote the California Senate Committee on Public Safety defeated Assembly Bill 1067. The measure, authored by Assemblyman Paul Cook (R-Yucaipa), sought to require blinders to be employed on news racks featuring magazines with "harmful matter" on the cover. According to Assemblyman Cook, the legislation was necessary because the city of Beaumont implemented the policy through local ordinance, and now (in the name of decency), the state should do the same. On the public's dime, the Mayor and Police Chief of Beaumont flew up to Sacramento to promote the value-based legislation. While no reasonable person supports exposing children to any adult material, in addition to being overly broad, the new law would have ensnared well-intended retailers through the impossible task of making a complex legal determination as to what is or is not harmful matter. Despite the ambiguity, any retailer found to be in violation would have faced up to a $1,000 fine. Arguably, a simpler alternative would have been self-censorship and a choice to simply stop carrying questionable magazines, thereby leading to a reduction in the exercise of free speech and the quantity of available materials for adults. AB 1067, which received primary opposition from Free Speech Coalition, ACLU, and Taxpayers for Improving Public Safety, was fast-tracked through the Assembly and received no "No" votes. It was like a runaway freight train -- until it was heard in the Senate. Through an effective communication and lobbying effort by FSC, the opposition successfully explained why the legislation was unnecessary. Our position was that, because existing California law already provides a remedy, and local communities are free to pass an ordinance like that of Beaumont if local community values supported doing so, the law would have been redundant. "Would it be appropriate for the city of Beaumont, through this legislation, to decide what was appropriate for East Los Angeles?" asked FSC's lobbyist during the hearing. Senator Romero, who represents East Los Angeles and is the Chair of the Committee, thought not. Experienced Senators recognized FSC's second point, related to the inability of lay retail workers to personally define "harmful matter," suggesting additional challenges in determining the appropriateness for viewing by varying ages of adolescents. For example, what may be inappropriate for a seven-year-old might be perfectly acceptable for a seventeen-year-old, and yet AB 1067 sought to censor everything, regardless of age. The pressure was really on when it came down to one swing vote, and that Senator was in a different committee hearing during the entire bill presentation. The lobbyist for the opposing side as well as the Mayor and Police Chief in Beaumont went looking for him. FSC's lobbyist did the same. After brief input by both sides, the Senator saw the ills of AB 1067 and refused to support it. This is a crystal clear example of the importance of proactive lobbying efforts when legislation that can adversely affect the adult entertainment industry is introduced. ===================================================================== Matt Gray is a senior lobbyist with Capital Alliance, a California lobbying and government strategies firm. He can be reached by email matt@thecapitalalliance.com, or at 916-444-5551. TRADE SHOW BOOTH FOR SALE -- FSC has a trade show booth for sale. This sturdy booth is 10 feet by 20 feet, with half-wall sides and front, and niches for display. It is covered in red & blue carpet-like fabric, but could easily be reupholstered to any choice of fabric and colors by the buyer. Photos of the booth are available upon request. Originally purchased in 2002 at a cost of $13,000, it is available to the savvy buyer for only $1,500. This is a great opportunity for an FSC member to purchase a substantial trade show presence at a fraction of the cost of new. For more information, please contact Valerie at 1-866-FSC-9373. Email Xpress@freespeechcoalition.com for more information. Because of 2257 litigation, it's critical that we have your company's information complete in our database. Are you SURE your company's information is complete? Email UpdateInfo@FreeSpeechCoalition.com to update your company's information now. NOTE: The data we're tracking, related to 2257, has changed. Please update NOW. JULY 11-13 - XBiz Summer '07 Forum, Hard Rock Hotel and Casino, Las Vegas, Nevada JULY 16-18 - ANE - Adult Novelty Expo, Universal City, CA AUGUST 3-5 - Internext, Hollywood, FL AUGUST 27-30 - Annual Gentlemen's Club Owners Expo, Las Vegas, NV AUGUST 27-30 - STOREROTICA Convention and Tradeshow, Las Vegas, NV SEPT 21-23 - ADULTCON, Los Angeles Convention Center Don't let your ego get too close to your position, so that if your position gets shot down, your ego doesn't go with it. -- Colin Powell Happiness does not come from doing easy work but from the afterglow of satisfaction that comes after the achievement of a difficult task that demanded our best. -- Theodore Isaac Rubin
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