educational

Copyright Basics: 2

In part one we looked at copyrights as property and the six separate rights granted to copyright owners. In today's conclusion, we'll examine copyright enforcement, statutory damages and beyond:

Enforcement
Until relatively recently, adult entertainment companies, with the exception of Playboy and a few others, did not generally enforce their intellectual property rights, such as their copyrights, very vigorously. However, because of rampant piracy of DVDs and photographs, Internet infringements, and unlawful distribution of content via peer-to-peer networks, all that has changed. In fact, over the past 10 years, most of our adult entertainment clients, including virtually every one of our large video production clients have either initiated or defended one or more copyright infringement actions.

A person or entity may be liable for damages to a copyright owner for copyright infringement if that person or entity exercises, without proper authorization, one or more of the exclusive copyrights listed above. In such cases, the copyright owner can bring a lawsuit in federal court to obtain dam ages and prevent the infringer's continued infringement of the copyright owner's work.

Statutory Damages
The basic measure of damages for infringement of a copyright is either the amount of money made by the infringer, or the amount of money lost by the copyright owner, due to the infringement. Unfortunately, filing a lawsuit in federal court and proving what an infringer made or what the copyright owner lost, is often an expensive proposition. Given the fact that a copyright owner is not automatically entitled to an award of attorney's fees if the infringement action is successful, many copyright owners have understandably elected not to file actions against even blatant infringers where the expense of the lawsuit would likely be greater than any realized monetary recovery.

Fortunately, copyright owners have another very powerful option. If the copyright in a work is registered with the Copyright Office prior to the infringement or within the first three months of publication of the work, the copyright owner can elect to seek "statutory damages" provided by the Copyright Act. This form of damages calculation allows the judge in a copyright enforcement action to award damages of up to $150,000 per work infringed regardless of the amount made by the infringer or the amount lost by the copyright owner.

Moreover, the statutory damages provision of the Copyright Act also entitles the copyright owner to seek, and be awarded, reasonable attorney's fees.

Because of the availability of statutory damages, the economics of enforcement of copyrights in the adult industry dramatically shift in favor of those that timely register their copyrights. In fact, we have settled numerous cases without having to commence a lawsuit. Often a "cease and desist" letter to which one or more copyright registrations are attached is enough to motivate the infringer to settle on terms favorable to our client. For example, thanks to the availability of statutory damages, we recently settled an action involving infringement of 32 registered works, in the mid-six-figures, without the need to commence a lawsuit.

Consequently, timely registration of copyrights is a good idea for producers of every type of adult content, including individual websites or even web pages. Moreover, the benefits of copyright registration become even more attractive, however, when one considers that the cost of registration is currently only $30 per work.

A Good Defense
The flip-side of knowing how to effectively enforce your copyrights is to know how to avoid infringement of another party's copyrights. As indicated above, a successful copyright enforcement action against an infringer can cost the infringer dearly.

Consequently, we always counsel our clients that license content not to use any content to which they do not have a clear written authorization to do so. This means a written license of rights with explicit representations and warranties that the licensor has all the rights allegedly licensed. Further, we advise clients to require that the licensor must agree to indemnify the licensee from any and all damages resulting from actions brought by third parties claiming rights in the content.

Of course, this article is only a basic introduction to issues involved in copyright exploitation, enforcement and infringement prevention.

Consequently, if you are an adult entrepreneur or are considering entering the business, we strongly recommend that you seek the counsel of a competent intellectual property attorney experienced in adult entertainment matters.

Gregory A. Piccionelli, Esq. is a senior member of Piccionelli & Sarno, one of the world's most experienced adult entertainment law firms, additionally specializing in intellectual property, Internet and traditional media matters. He can be reached at (310) 553-3375.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

profile

Vendo CEO Mitch Platt Reflects on 20 Years of Lessons and Evolution

More than 20 years ago, three entrepreneurs in Barcelona began gathering over beers to pitch, dissect and routinely destroy one another's business ideas. The ritual was simple: One person arrived with a concept, while the other two tried to expose every weakness. Any proposal that survived earned another look. Most did not.

Jackie Backman ·
opinion

How to Avoid the Hidden Risks of AI-Generated Legal Documents

Artificial intelligence can write a contract in seconds, but that does not mean it can write the contract your business actually needs. Across the adult industry, operators, creators and producers are increasingly using generative AI to prepare model releases, performer agreements, privacy policies, takedown notices, employment documents and responses to regulators. The appeal is obvious: Legal work is expensive, AI is fast and the resulting document often looks impressively professional. That polished appearance is exactly what makes the practice dangerous.

Corey Silverstein ·
opinion

How Rolling Reserves Affect Cash Flow and Merchant Stability

You log in to your payment processor’s dashboard, discover they are withholding 10% of your sales, and immediately assume something has gone wrong. In reality, everything is working exactly as intended.

Jonathan Corona ·
opinion

What Federal Age Verification Could Mean for Adult Websites

Our industry has grappled with a patchwork of confusing and burdensome state age verification laws for the past couple of years. But that landscape could change quickly after the House passed the Kids Internet and Digital Safety (KIDS) Act (H.R. 7757) by a vote of 267-117, marking a significant federal step into this space.

Lawrence G. Walters ·
opinion

The Website Footer Requirements Every Adult Merchant Should Know

Since I started in this business 25 years ago, I've watched website footers evolve from a simple collection of links designed to help with SEO into important tools for meeting compliance and regulatory requirements, improving the customer experience and reducing chargebacks.

Cathy Beardsley ·
opinion

Why E-Payment Diversification Matters for Merchant Stability

Match payment methods to your customers. Look at where your customers are located, how they prefer to pay and which products they purchase. A business with significant European traffic may benefit from SEPA or Pay by Bank, while a subscription-based business may prioritize ACH or cryptocurrency. Add the payment methods your customers are most likely to use, as not every option is available.

Jonathan Corona ·
trends

AI at Work: The Tools and Practices Powering Creativity, Commerce and Compliance

For years, artificial intelligence felt like the plot of a science-fiction movie. Pop culture gave us Skynet from “The Terminator,” the replicants of “Blade Runner” and countless visions of machines replacing human creativity altogether. AI was cast as either humanity's next great breakthrough or the beginning of a dystopian future.

Jackie Backman ·
opinion

Key Questions Online Merchants Should Know About PCI Compliance

Choosing a payment provider involves more than comparing features and pricing. It's also about trusting that your customers' payment information is being handled securely. Every August, Segpay is recertified as a Level 1 PCI-compliant service provider, a milestone the company has achieved for the past 20 years. Having helped write Segpay's original PCI policy documents more than two decades ago, I've seen firsthand how PCI compliance has evolved.

Cathy Beardsley ·
profile

New Moon Network's Savannah Sly on Turning Lived Experience Into Advocacy

Savannah Sly is the first to admit she didn't always understand sex work. At 18, she was an art student in Boston, working part-time at a box office and, as she puts it, "broke as a joke." While looking for ways to make ends meet, she often found herself browsing Craigslist's adult ads, intrigued by the women advertising their services.

Jackie Backman ·
opinion

How to Safeguard Your Website Against CIPA Claims

There is a new wave of lawsuits targeting online businesses, including adult websites. These suits involve the California Invasion of Privacy Act (CIPA), and they are becoming increasingly prevalent. In fact, three different clients of my law firm were recently served or threatened with CIPA lawsuits — all in the same week.

Nick Zargarpour ·
Show More