Third Party Hosting of 2257 paperwork with law firm

[domweb]

I have searched for a thread that can help me with this question and can't find an appropriate one, so here goes.

I dropped out of doing adult sites when Bush Jr made life hell for everyone with 2257. I was a secondary producer and just didn't have the deep pockets or revenue stream to deal with the complications. Same old story you have all heard a thousand times.

I ran across a thread on another board recently (honestly can't remember which one) where the Pepper Law Group has reviewed the latest regs and determined that 3rd party hosting of the 2257 paperwork is legal and they are getting into the business.

Now I know nothing about these folks. I filled out their contact form on their website thursday night and got a call back friday from Lisa. I didn't have much time to talk, but I gleaned these facts:

1. This is a new service and they are just starting to take clients on board.

2. You will still need to provide to them a complete list of URLs cross referenced to the model. (I have a scheduled Monday phone call with them to get further details on the details of how that will be done, but it sounds like a completely online process). This is not fire and forget, you still need to update their URL listings as you build and change your websites.

3. The list of services and price structure seems reasonable for having high security protection of your 2257 paperwork available for the Feds to inspect anytime they choose and not have your name and home address available to the next wingnut with a gun and a desire kill porn webmasters for jesus.

Does anyone know anything about these guys? Do any of you utilize their services or know someone who does? Is this legit or a lawyer doing too much blow and looking for fast money?

I am hoping this is legit. I am quite prepared to pay a small monthly fee to keep the Feds happy, off my back and chasing the real criminals.

I am grateful for any info you might have. This might be the key to let me get back into making money online. My engineering degree isn't helping in this economy and I am tired of being laid off.

[domweb]

Perhaps I have finally found the answer to one of my two questions.

According to 28 C.F.R. 75.2(4)(h) of 18 U.S.C. 2257 / 2257A:

"A primary or secondary producer may contract with a non-employee custodian to retain copies of the records that are required under this part. Such custodian must comply with all obligations related to records that are required by this Part, and such a contract does not relieve the producer of his liability under this part."

So...it looks like I can hire a third party. Now I just have to find a reputable company. I haven't found anything bad about these guys with my google-fu, but I haven't found anything glowing yet either.

Sorry to clutter your screen if you already knew this, but I have been sorting claims and counterclaims from lawyers and webmasters for so long I was suspicious that this was even legal.

Peace, Long Life and Abundant Resources to you All

[tickler]

Just remember

such a contract does not relieve the producer of his liability under this part."

[domweb]

I would assume that you mean that the smartwebmaster will keep at least one other set of updated hardcopies of the 2257 docs and URL cross-references database at his or her actual place of business (my home)?

That is fine with me, as I am willing to host the records but I don't want my home address all over the net as the custodian of records. I have a wife and kid to think about. And I own a secure safe.

Or am I missing your point completely? I have been know to miss the trees for the forest (and no that is not backwards).

[tickler]

Probably a good ideal for your personal copy, but, would the DOJ permit using it if your Custodian is listed somewhere else.

Here's an article by Paul Cambria that goes over some of the 3rd party issues, and more.

Changes to the federal recordkeeping law raise questions and concerns.
Talk about a mixed bag. An adult business owner who does not have the expertise to feel comfortable running a 2257 database may now hire a third party to perform the task, yet he's blessed with full criminal liability for the third-party record-keeper's errors. Sure, he doesn't have to personally sweat over record-keeping issues, but he gets to lay awake at night wondering if someone else's negligence will someday come back to haunt him.

Moreover, third-party record-keeping is fraught with important unanswered questions, not the least of which involves the confidentiality of the process. Assume, for instance, that a single third-party record-keeper is central to numerous producers. When the inspectors arrive for the records of Producer A, will they be put in a position to observe the records (and possible deficiencies therein) of Producers B through Z? If the record-keeper makes a systemic error, does that put all of the producers for whom he keeps records at risk? (Seriously, if it comes to a federal agent's attention that a third-party record-keeper for multiple companies has made a fundamental record-keeping mistake - for instance, not cross-referencing - in one client's database, wouldn't she assume that the same fundamental error exists in all of that record-keeper's databases?) Non-criminally, will deficiencies in your record-keeping become the stuff of industry gossip, harming your sales? Bottom line: Look before you leap into third-party record-keeping, and make sure you've got a contract that keeps the record-keeper's feet to the 2257 compliance fire (including confidentiality clauses and a provision giving you or your representative the right to make unannounced inspections of your own records so that you can sleep at night).
http://business.avn.com/articles/33843.html

BTW, June 16 is the last day to file for a 2257A exemption.

[domweb]

Tickler, I totally appreciate the heads up on the possible criminal potholes that still exist within the morass that is the 2257 mine field.

And thanks for taking the time to talk to me about something that everyone in the industry is sick to death of hearing. The phrase '2257' on the screen makes many an adult webmaster cringe from sheer weariness. (It happens to me whenever I see 'Octomom' somewhere.)

I know that if the Universe decides to have the FBI run a 2257 check on my business, due to my own error or the record keepers error, I could be facing somewhere between 5 and 5 kagillion years in prison depending on the scope of the book-keeping error.

But I am making the best efforts I can to make sure my content is legal and well documented. My hiring of a law firm to maintain my records as provided for in law speaks to my degree of due diligence in meeting the requirements of the law.

But my back is to the wall. My family has enough resources to make another year or almost two before me, my wife and my toddler are out on the street begging for shelter from relatives and food stamps from the government.

I hold a Bachelors in Electronics Engineering. I have earned six figures in my lifetime. I am pretty smart. And my industry has evaporated. There is no work for the next six months at best. The next five years at worst. I am forty years old and do not qualify for an additional government training at this point.

I have done this before on a smale scale and was considered pretty successful in both my conversion rates and retention of long term revenue customers.

If I end up in jail for screwing up my paperwork, you can use me as a cautionary tale to all the newbie webmasters clamoring for info on how to get into the biz.

So, it's just time to hitch up my balls and make this move. I ain't going out like a whimpering bitch.

Peace and Success

[tickler]

Originally Posted by domweb

And thanks for taking the time to talk to me about something that everyone in the industry is sick to death of hearing. The phrase '2257' on the screen makes many an adult webmaster cringe from sheer weariness.

NP, the main reason that I sort of stay up to date is a legal items feed that runs on my desktop for one of my offline clients because I have to monitor all regulatory changes affecting the systems that they use. I just added 2257 as a flag term to it, so it catches any updates, etc.

[ecchi]

Originally Posted by domweb

I am willing to host the records but I don't want my home address all over the net as the custodian of records.

Not being an American, I do not have to bother with 2257, so you will have to check this is legal in the US before trying it: When I was marketing an adult board game and did not want my home address as the address people ordered from, I used an "accommodation address". There are a lot of companies offering this in the UK so if it is legal I would guess that there are a lot in the US too. (An accommodation address is just a company, or in some cases a private individual, who allows you to use their address for a small fee. Any mail that is sent to you at that address they forward to you, and only they know your real address.)

[balls_deep]

Originally Posted by domweb

I ran across a thread on another board recently (honestly can't remember which one) where the Pepper Law Group has reviewed the latest regs and determined that 3rd party hosting of the 2257 paperwork is legal and they are getting into the business.

Does anyone know anything about these guys? Do any of you utilize their services or know someone who does? Is this legit or a lawyer doing too much blow and looking for fast money?

It is totally legit, and Pepper Law Group is a solid attorney for adult related law.

Pepper just published this link on another board but it sums up a lot of questions regarding the new 2257 regs.

http://www.usdoj.gov/criminal/optf/l...nce-guide.html

hope that helps...