SAN DIEGO, CA – The first day of the Cybernet Expo adult industry trade show featured a well-attended legal “question and answer” session with attorney Eric M. Bernstein of embalaw.com. The session was moderated by LAJ of YNOT.com and gave webmasters and other industry professionals gathered at the Shelter Pointe Hotel on San Diego Bay an opportunity to get some opinions on important industry legal topics.“The state of the business at this moment is excellent,” Bernstein told his audience. He argued that adult entertainment is an in-demand commodity, and will survive whatever challenges the government throws at it.

Bernstein, who is in the unique position of representing both adult industry clients and politicians, joked that most politicians generally don’t have a big problem with porn.

“I know that because they keep calling wanting passwords,” Bernstein said to laughter.

Despite a number of uncertainties facing the industry, Bernstein said he sees opportunity for those who are willing to take it. He said that now is “clearly a time for people to make more money in this business.”

“The number of free sites are clearly going to diminish,” said Bernstein, who then predicted that pay sites will increase and more adult webmasters will decide to produce their own content rather than lease.

Bernstein also mentioned the proposed dot-xxx top-level domain name. He said there was “only one rationale whatsoever for dot triple-x,” which would be in exchange for a promise from the government to completely leave the adult industry alone. Without that, said Bernstein, “It makes no sense folks.”

The government has not offered any incentives for adaptors of dot-xxx.

Bernstein also stressed the role of an attorney in a professional adult company.

“If you’re going to be business people then you’re going to need to have an attorney,” Bernstein stressed.

Bernstein then touched on the unpredictable nature of the current Supreme Court, saying “it’s an open ballgame” with respect to future decisions affecting adult entertainment.

He also stressed the importance supporting the Free Speech Coalition.

“Every one of you needs to belong,” he advised.

Yet the topic on everyone’s mind was the new 2257 regulations and what they might mean for their business operations.

“I believe their intent is to put people out of business,” Bernstein said of government anti-porn laws. He also said the 2257 will help the government to mask anti-adult entertainment initiatives under the guise of protecting children.

Many attendees wondered whether a move offshore would somehow help reduce 2257 liabilities. Bernstein said that’s a theory being pushed “mostly by the people who have hosting services offshore.” According to Bernstein, businesses that still do business in the United States would not be completely protected by moving offshore.

So who has to keep the records?

“Anyone who touches anything is where the problem is going to come about,” said Bernstein, meaning those who repackage or re-present adult content rather than simply distributing what others have done.

Asked what would stop someone from stalking models thanks to the ID requirements of 2257, Bernstein replied, “Unfortunately not a lot.” He said the Department of Justice was unconvinced that this issue was a real concern.

The location of records came up, and Bernstein stressed that post office boxes would not work.

“Principal place of business is the key phrase here,” Bernstein said. He also suggested that shared office space might be one possibility for some adult companies that now operate out of their homes.

Many of the questions asked by attendees did not have definitive answers.

“We all work in grey,” Bernstein said of his legal profession.

Cybernet Expo is an annual gathering of adult internet professionals. It features three days of seminars, parties and networking opportunities. Like last year, Cybernet Expo chose San Diego, California as its host city. The venue has changed, however, to the Shelter Point Hotel on San Diego Bay.