Delivering Weekly Censorship Updates to the Adult Entertainment Industry
Vol. X, No. 26, July 6, 2007 - A Member Service of the Free Speech Coalition Stories without byline submitted by FSC contract writer, Scott Ross
Contributing writers: Matt Gray and Dave Grimaldi
X-Press Editor-in-Chief: Scott L. Lowther
Special thanks to Cubik Corp. for formatting and Val Vizmanos for distribution
Copyright 2007 Free Speech Coalition. Permission to reprint granted to FSC members; please give credit.
AB1551 California Adult Industry Tax Bill Amended to Include 8% of Gross Revenues and Pay Per View
CANOGA PARK, CA - Monday, the amendments to California Assembly Bill 1551 were released. The bill, sponsored by Assembly Member Chuck Calderon (D-Whittier), seeks to impose a tax upon all adult entertainment businesses based on fabricated claims that adult entertainment venues cause adverse “secondary effects.”
Among other stipulations, the amendments institute an 8% tax on gross revenues, add satellite television providers, specifies that tax of PPV purchasers is to be collected by hotel owner or operator and establish authority and direction for tax collection agency.
“This tax will not only devastate the adult entertainment industry, but also severely effect vendors that support the industry, hotels and cable networks as well,” said Diane Duke Executive Director of the Free Speech Coalition. “I find it ironic that in 2007, when California Republicans have signed a contract agreeing to no new taxes, Calderon is proposing a devastating new tax that creates an additional tax-collection agency, with the accompanying costs of new bureaucracy. Clearly Calderon is out of touch with the best interest of Californians.”
Ten years ago, as a State Senator, Calderon introduced a similar bill and was unanimously defeated—receiving not a single vote in support. Ten years later, FSC, is working to send the same message-- that this type of legislation is not welcome in California. Killing this bill in the Assembly Revenue and Taxation Committee, the committee that Assembly Member Calderon Chairs, would send that clear message.
FSC is encouraging adult industry and industry-support professionals to attend the hearing in opposition to AB1551. As of Thursday 7/5/2007, there is no date for the hearing. Call FSC at 818-348-9373 for more information.
Online Buddies Donates $10,000 to Free Speech Coalition
CANOGA PARK, CA - The Free Speech Coalition received a generous $10,000 pledge this week from Online Buddies chairman Jonathon Crutchley to help the adult industry’s trade organization in its continued fight against 2257 laws.
Online Buddies, Inc. hosts the website, www.Manhunt.net, a dating site for gay men. According to Crutchley, the site has over one million registered users, about 600,000 in the United States and another 400,000 in other countries.
"Each member may post as many as twelve pictures with his online profile, and keeping records of proof-of-age for millions of photographs would not be possible for us," explained Crutchley. "If this law is enforced, we'd be out of business, and our members would lose a valuable service."
"We thank the folks at Online Buddies for their generous donation and commend them for their forward-thinking leadership," said Diane Duke, Free Speech Coalition Executive Director. "They not only understand the critical nature of the problem, but also have become a valuable part of the solution."
Online Buddies is one of five companies that have contributed to FSC's efforts to defeat 2257. The others are Adult FriendFinder, Platinum Bucks, and HotMovies.com. Sureflix/Maleflixxx also conducted an online fundraiser to raise funds to battle 2257 recently.
http://avn.com/index_cache.php?Primary_Navigation=Articles&Action=View_Article&Content_ID=291453
Owners of Online Adult Retailer Indicted on Federal Obscenity Charges
SALT LAKE CITY, UT - The owners of online adult retailer MoviesByMail.com were indicted by a federal grand jury last week on six counts of distributing obscene materials.
The indictment returned last Thursday charges Cleveland residents Sami R. Harb and Michael Harb, doing business as Movies by Mail, each with three counts of engaging in the business of selling or transferring obscene DVDs, and three counts of using the U.S. Postal Service to deliver obscene DVDs.
If convicted, the brothers could face up to five years in prison for each count. The two are expected in court July 12.
The investigation into MoviesByMail.com began in August when the FBI's Adult Obscenity Task Force received a tip that the website was selling allegedly obscene DVDs. In March, FBI agents placed an order for "Max Hardcore: Pure Max 18," Max Hardcore: Extreme 12" and Extreme Associates' "Cocktails 5" and had them shipped to Utah.
Just days before the two were arrested, Hardcore himself was indicted on 10 counts of federal obscenity. He is to appear in California court July 12.
Sami Harb told XBIZ that it was hardly a coincidence that the titles used against him happen to be from a company already under indictment.
"That was convenient, wasn't it?" Harb said. "No one gets that lucky. It's [the government] flexing its muscles, showing the conservatives and Republicans that they're doing something."
According to U.S. Attorney Brett Tolman, these movies have no artistic value.
"The U.S. Department of Justice and U.S. Attorneys' Offices nationwide have stepped up the prosecution of obscenity cases, as evidence increases of the harm of obscenity to American children and families," Tolman said. "As obscene materials continue to proliferate, they are becoming more accessible for the young and the innocent among us. At the same time they are becoming more extreme and degrading in content and present a growing threat to the well-being of American families and our society as a whole." Tolman provided no source in support of these assertions.
According to court documents, MoviesByMail.com distributed 683 packages to Utah addresses in 2006.
http://xbiz.com/news_piece.php?id=23886
Police Raid Two Adult Stores in Mississippi
JACKSON, MS - Jackson vice and narcotics officers raided two adult bookstores Monday afternoon, arresting two clerks and a store owner for misdemeanor charges related to the distribution of an obscene device.
Both the owner and the manager of Secrets were charged with “possession of sex toys with intent to distribute.” The manager of Adult Video and Book was booked on the same charge. The arrests followed the purchase of sex toys at both locations by undercover police that same morning.
At the time of the arrest, police were seen carrying boxes of what WLBT-3, the local television station that broke the story, described as “what appeared to be sex toys” out of both stores.
Mississippi is one of five states with laws that define adult novelties as obscene devices. A local police officer informed WBLT that "…any items that are sold to stimulate the human genitalia is [sic] against state statute."
Local authorities have targeted both stores in the past. In 2005, Mayor Frank Melton shut down Adult Video and Books and arrested its owner on suspicion of "inappropriate activity" on the premises. Secrets was shut down in March 2006, for opening without a proper license.
Both businesses are now closed until further notice.
http://www.wlbt.com/Global/story.asp?S=6740632&nav=2CSf
THANK YOU, TOPCO SALES
Free Speech Coalition extends a warm 'thank-you' to Topco Sales for its hospitality in providing its luxurious conference room to the FSC Board of Directors for its July board meeting. Topco executives and staff always make our group feel right at home.
TRADE SHOW BOOTH FOR SALE --
FSC has a trade show booth for sale. This sturdy booth is 10 feet by 20 feet, with half-wall sides and front, and niches for display. It is covered in red & blue carpet-like fabric, but could easily be reupholstered to any choice of fabric and colors by the buyer.
Photos of the booth are available upon request. Originally purchased in 2002 at a cost of $13,000, it is available to the savvy buyer for only $1,500. This is a great opportunity for an FSC member to purchase a substantial trade show presence at a fraction of the cost of new. For more information, please contact Valerie at 1-866-FSC-9373.
Email Xpress@freespeechcoalition.com for more information.
Because of 2257 litigation, it's critical that we have your company's information complete in our database. Are you SURE your company's information is complete? Email UpdateInfo@FreeSpeechCoalition.com to update your company's information now.
NOTE: The data we're tracking, related to 2257, has changed. Please update NOW.
JULY 11-13 - XBiz Summer '07 Forum, Hard Rock Hotel and Casino, Las Vegas, Nevada
JULY 16-18 - ANE - Adult Novelty Expo, Universal City, CA
AUGUST 3-5 - Internext, Hollywood, FL
AUGUST 27-30 - Annual Gentlemen's Club Owners Expo, Las Vegas, NV
AUGUST 27-30 - STOREROTICA Convention and Tradeshow, Las Vegas, NV
SEPT 21-23 - ADULTCON, Los Angeles Convention Center
I do not think that there is any other quality so essential to success of any kind as the quality of perseverance. It overcomes almost everything, even nature.
-- John D. Rockefeller
No person will make a great business who wants to do it all himself or get all the credit.
-- Andrew Carnegie
