ouch Karma is a bitch isn't it?
Gideon, I think you have take the idea of fair use extended it beyond it true scope.
http://www.copyright.gov/fls/fl102.html
One of the test for fair use is "The effect of the use upon the potential market for, or value of, the copyrighted work." I believe this is linch pin for adult content.
I do believe that Gideon is technically legally correct in his assertion the laws of a specific jurisdiction should be used to assert the copyright protections. However, that doesn't make violating the copyright protections legal, even in a foreign jurisdiction. It only means a foreign entity can legally require a certain set of hoop be jumped thru.
But then we come back to Karma....