[Toby]

It would appear that any resolution on the "secondary" producer issue is still months away. From FSC's most recent newsletter.

Frequently Asked Questions
1. As a secondary producer, what records should I have in place to be in compliance as a result of this decision and from what point in time do I need them?
Secondary producers were required by Congress to have records (photocopy of passport, DMV-issued ID, military ID or "Green Card" as well as personal information form) for materials acquired after July 27, 2007. The regulations detailing how compliance is to occur were supposed to be issued in January of 2007. They are now scheduled for release in June. Nothing legally has changed in regards to the basis by which FSC got its injunction; that is, Congress had not authorized any record-keeping by secondary producers prior to July 27, 2007. Therefore secondary producers need not acquire or maintain any records for materials acquired prior to July 27, 2007, at the earliest. It is more realistic to say that records will not be required until the effective date of the new regulations. If the Government is so stupid as to try to enforce record-keeping by secondary producers for materials acquired before Congress authorized such record-keeping, FSC will seek and expects to get an immediate order halting such action.

2. When do you anticipate is the soonest the new regulations concerning 2257 will be released?
The Government recently stated that the proposed regulations will be released in June of 2007.

3. What happens once the new regulations are released?
With a 60 day public comment period, assuming that the proposed regulations are released June 1, 2007, the Government has unlimited time to reflect on the public comments before issuing the final regulations. Assuming a conservative 60 day period after public comments to issue the final regulations (60 days would be lightning speed), the 2257A regulations, by statute, would go into effect 90 days thereafter. It is reasonable to assume that the same will apply to the 2257 regulations. Therefore the soonest they could go into effect would be seven months from June 1, 2007. So it looks like 2008 is when we shall see final regulations become effective.

4. Is FSC going to file for another injunction? What are FSC's next steps?
FSC will seek a court order preventing the new regulations from going into effect, assuming that the government does not completely relent from the burdensome compliance regime it has heretofore insisted upon. Additionally, because of the newly enacted "Hollywood" exemptions to 2257 and 2257A, there is a much stronger argument for declaring the entire 2257/2257A record-keeping and labeling scheme unconstitutional. This is a realistic hope.

5. If secondary producers are no longer covered, from a legal standpoint, why should I continue being a member of FSC?
Should the government attempt to enforce the record-keeping provisions against secondary producers for materials acquired before the effective date of the new regulations, your existing/ongoing membership will protect you when the new injunction issues. And assuming that FSC gets injunctive relief from the law itself and/or new regulations, you will definitely need to be a member then. But membership in FSC conveys many benefits, of which protection from government misconduct is only one of them. The fact that you are making this inquiry of us demonstrates the vital role we play in informing our membership of the pressing issues. Through your support of FSC, the adult industry has a lobbyist in Washington, D.C., has a respected voice in the wide-ranging public debate about the place of sexual communication in our culture, as well as commercial/financial benefits (see our website).

6. If FSC proceeds with a new lawsuit/injunction at what point will I need to be a member to be covered under the new lawsuit/injunction?
We cannot say at this time. We always try to have any legal relief cover as many people and businesses as possible. The significance of specific effective dates of membership depends on the judge and any agreements reached with the government in any given lawsuit. For instance the join date of May 23, 2005, in the Denver litigation was simply an arbitrary date imposed by the Justice Department. As to the next time, we must wait and see. If you maintain your membership, you need not be concerned about the effective join date in the future.