The adult industry has always been defined by its ability to evolve. It embraced online distribution before much of mainstream entertainment did, pioneered subscription-based business models, and continues to evolve in areas ranging from streaming to AI.
Yet one part of the business remains surprisingly old-fashioned: too many deals are still built on handshakes, verbal promises, text messages and assumptions. As an attorney representing performers, studios, website operators, creators and technology companies, I've seen a sharp increase in business disputes over the past several years. Surprisingly, most aren't driven by censorship, payment processing, age-verification laws or intellectual property theft, but by something much simpler:
Many contract disputes don't arise because businesses fail – they arise because businesses succeed. When a creator's subscription platform grows from earning a few thousand dollars a month to generating hundreds of thousands annually, the informal arrangements made in the early days often come under new scrutiny.
The parties never put their agreement in writing.
Often, disputes arise not because anyone acted in bad faith, but because two people remember the same conversation differently. Those differing recollections may seem harmless at first, but as a business grows and more money is involved, they can quickly lead to costly litigation. The unfortunate reality is that many of the industry's most expensive legal disputes could have been prevented by spending a few hours negotiating and signing a comprehensive written agreement before the work ever began.
The Industry Has Outgrown Handshake Deals
The adult industry has always been relationship-driven. Businesses often start between friends, longtime collaborators or trusted colleagues, and when everyone shares the same goals, a written contract can feel unnecessary.
Ironically, that's exactly when it's most valuable.
Contracts aren't written for the days when everyone agrees – they're written for the day someone doesn't. As businesses become successful, the dynamics inevitably change. Revenue increases. New investors become involved. Employees are hired. Companies expand internationally. Platforms are sold. New opportunities emerge that no one anticipated when the relationship first began.
Those changes often expose assumptions that were never discussed. Who owns the customer database? Who controls the social media accounts? Who owns the raw footage? What happens if one partner wants to leave? Can either party compete against the other? Is someone entitled to future revenue after the relationship ends?
If those questions were never answered in writing, they often become extraordinarily expensive questions to answer in court.
Success is Often the Beginning of the Dispute
Many contract disputes don't arise because businesses fail – they arise because businesses succeed. When a creator's subscription platform grows from earning a few thousand dollars a month to generating hundreds of thousands annually, the informal arrangements made in the early days often come under new scrutiny.
The marketer who helped launch the account may believe they were promised an indefinite percentage of revenue. The creator may believe that the agreement ended once specific services were completed. Both may honestly believe they're right.
One of the most common statements I hear during an initial client consultation is, "We had an agreement."
My response is always the same:
"May I see it?"
Too often, the answer is screenshots of text messages, emails or Discord conversations rather than a written contract. Those communications may become evidence, but they rarely answer the questions that matter most. What exactly counts as "profits"? Which expenses can be deducted? Who owns the intellectual property? Can either party audit the books? What happens if someone wants to leave the business?
Without clear answers in writing, courts are left reconstructing years-old conversations from scattered messages and payment records. That uncertainty makes litigation far more expensive, and far less predictable.
Put It in Writing Before It Becomes a Problem
A strong contract defines the current business relationship and anticipates tomorrow's challenges. Before any work begins, make sure your agreements clearly address:
- Ownership rights: Who owns the finished content, raw footage, promotional assets, customer lists and other intellectual property?
- Future use: Can content be repurposed, licensed internationally or reused in future projects?
- AI rights: Should content be used to train AI models? Are digital replicas, cloned voices or AI-generated derivatives permitted, and who owns them?
- Roles and responsibilities: Clearly define each party's scope of work, compensation and ownership rights, especially when working with contractors, developers, photographers, affiliate managers or business partners.
- Cross-border operations: If you're working internationally, establish which country's laws apply, where disputes will be resolved and who is responsible for regulatory compliance.
Good Contracts Save More Than Money
Investing in strong legal agreements today can prevent costly problems tomorrow. A well-drafted contract helps protect more than your bottom line by:
- Reducing the risk of expensive disputes and litigation.
- Keeping leadership focused on growing the business instead of managing legal conflicts.
- Protecting your reputation, investor confidence and future business opportunities.
- Providing a clear exit strategy that outlines ownership of customer lists, domains, social media accounts and other business assets.
- Defining how outstanding payments, ongoing obligations and post-termination competition will be handled.
An exit strategy does not signal a lack of trust. It demonstrates sound business planning.
Build the Business, Protect the Business
Every business has different legal needs, but every business should regularly review and update its legal foundation. That includes everything from performer and production agreements to independent contractor and content licensing agreements, as well as operating or partnership agreements, non-disclosure agreements, model releases, website terms of service and privacy policies. Today's agreements should also address emerging issues like AI, ensuring they reflect both current technology and modern business practices. As your business grows and the legal landscape changes, your contracts should keep pace.
Perhaps the biggest misconception I encounter is that asking someone to sign a contract signals distrust. In reality, the opposite is true. A well-drafted agreement protects everyone involved by establishing clear expectations before problems arise, reducing misunderstandings and creating a stronger foundation for long-term success.
A handshake may start a business relationship, but it should never be the only thing protecting it.
Corey D. Silverstein is the managing and founding member of Silverstein Legal, which represents all areas of the adult industry. His clientele includes hosting companies, affiliate programs, content producers, processors, designers, developers, operators and more. He is licensed in numerous jurisdictions. Contact him via MyAdultAttorney.com, corey@silversteinlegal.com or 248-290-0655.
