From what I was told , Seymour had two versions of that video slated for release ( Euro and US ). Somehow, some of the orders were switched and the local community officials took the chance to sue him.
The thing about governments is that if they want to put you out of business they can. Even if there is no law pertaining to your breed of "criminal activity" they will find some freaky ass statute to get you with.
I think the obscenity laws should only apply to public obscenity. The TV has two knobs, one switches the channel and one turns it off. If you dont like what your seeing just turn the knob. Of course the Attorney General probably isnt to familiar with anything that has two knobs.
