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I think that regardless of watermarks or other (and the new rules specifically discuss that sort of thing) if you publish a website that contains sexually explict material, you need to have records.
The good news? They will accept DIGITAL copies of records, which means instead of paper this can all be done on computer (but you better back that sucker up!). There is some debate if the computer need to be in your place of business, but unless i see otherwise, the most narrow interpretation is the best way to go, which means records at your place of business - not just available remotely over the net.
Your 2257 disclosure has to mention your company your address your contact info a publisher and secondary producer of the content. Sad but true, no way around it that I have seen (unless you have a corporation and hire someone else to do it... more on that later I think!)
Gotta love the US government.
Alex
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