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Randomonium · 07-28-2005, 04:31 AM

2257 - Sentenced to 5 years of 20+ hours per week stuck in the office or paying an employee - Ramnifications?

This thread grew out of a post in the Noob Showcase thread about the TGP Case Study. More specifically discussion about how free hosting & 2257 can play a part in choosing which sponsor to use for a gallery.

There has been a lot of discussion about what 2257 software to use, and when you are required to keep the records.

IANAL* but to the best of my understanding it goes something like this:

Section 75.5 requires that if you are keeping 2257 documentation then you (or an employee not a 3rd party) have the records available for inspection during "normal" business hours with a minimum of 20 hours per week.

Current thinking says that whoever publishes the gallery is required to keep the records. If linkenhotten is ruled as ?mere distribution? as many hope, then this discussion may be moot. However, if the interpretation continues to be that even hotlinking qualifies you as a secondary distributor then potentially

If the sponsor is hosting/publishing the gallery, then the sponsor is responsible for the 2257 documentation. (If this is not correct please let me know!)

If the sponsor offers free hosting of your galleries, then it would be in essence a custom, exclusive, free hosted gallery. Perhaps in the future CEFHGs (custom, exclusive, free hosted galleries) will be a feature that affiliates look for in a sponsor if they don't have the resources to deal with 2257 documentation.

Assume for the moment that any one of the compliance software solution completely satisfies the 2257 requirements for record keeping (I don't feel qualified to pass judgment).

So even if you have the perfect software, and your records are in perfect order etc etc then in order to even use one image that requires 2257 documentation, you have to be prepared to make a 20+ hour per week commitment for at least 5 years.

What are the ramnifications? I think it could go something like this:

The separation gap (if you will) between heavy hitters who have the resources to maintain records, and the smaller webmasters will become a sharp divide.

Those who can maintain records, and/or afford the staffing commitment gain the advantages of being able to use more compelling content (sexually explicit and/or exclusive) as well as mobility (use any sponsor they like & switch without penalty).

The smaller affiliates will face a lack of mobility (need stay with sponsors who offer CEFHGs, leave a sponsor lose the Long Tail sales)

Economy of scale dictates that there will be consolidation in the market. The trend towards "Super Affiliates" being make or break for a program will increase.

Some programs will try to smooth the gap with CEFHGs and probably other ideas yet to come. Servicing the newbies has a much higher cost vs. ROI. Sponsors will have to strike a balance, both in terms of their time/resources and over saturation of their content.

As the balance of power between Affiliate programs & Super Affiliates is shifted, the Super Affiliates will demand more and more resources to keep their business.

Sponsors profit margins will decrease, therefore stability or padding. Some programs will crash from "flying too close to the sun". Consolidation occurs as the market matures, and competition decreases.

I can go on and on, but if you are still reading, then I hope you can see where I am going with this.

Does it have to be like this? ----->

-----> Am I missing something?

------> What do you think?

-Jeff Random
*I Am Not A Lawyer

07-28-2005, 04:31 AM
Randomonium Confirmed User Join Date: Aug 2004 Posts: 152	2257: Sentenced to 5 years..! 2257 - Sentenced to 5 years of 20+ hours per week stuck in the office or paying an employee - Ramnifications? This thread grew out of a post in the Noob Showcase thread about the TGP Case Study. More specifically discussion about how free hosting & 2257 can play a part in choosing which sponsor to use for a gallery. There has been a lot of discussion about what 2257 software to use, and when you are required to keep the records. IANAL* but to the best of my understanding it goes something like this: Section 75.5 requires that if you are keeping 2257 documentation then you (or an employee not a 3rd party) have the records available for inspection during "normal" business hours with a minimum of 20 hours per week. Current thinking says that whoever publishes the gallery is required to keep the records. If linkenhotten is ruled as ?mere distribution? as many hope, then this discussion may be moot. However, if the interpretation continues to be that even hotlinking qualifies you as a secondary distributor then potentially If the sponsor is hosting/publishing the gallery, then the sponsor is responsible for the 2257 documentation. (If this is not correct please let me know!) If the sponsor offers free hosting of your galleries, then it would be in essence a custom, exclusive, free hosted gallery. Perhaps in the future CEFHGs (custom, exclusive, free hosted galleries) will be a feature that affiliates look for in a sponsor if they don't have the resources to deal with 2257 documentation. Assume for the moment that any one of the compliance software solution completely satisfies the 2257 requirements for record keeping (I don't feel qualified to pass judgment). So even if you have the perfect software, and your records are in perfect order etc etc then in order to even use one image that requires 2257 documentation, you have to be prepared to make a 20+ hour per week commitment for at least 5 years. What are the ramnifications? I think it could go something like this: The separation gap (if you will) between heavy hitters who have the resources to maintain records, and the smaller webmasters will become a sharp divide. Those who can maintain records, and/or afford the staffing commitment gain the advantages of being able to use more compelling content (sexually explicit and/or exclusive) as well as mobility (use any sponsor they like & switch without penalty). The smaller affiliates will face a lack of mobility (need stay with sponsors who offer CEFHGs, leave a sponsor lose the Long Tail sales) Economy of scale dictates that there will be consolidation in the market. The trend towards "Super Affiliates" being make or break for a program will increase. Some programs will try to smooth the gap with CEFHGs and probably other ideas yet to come. Servicing the newbies has a much higher cost vs. ROI. Sponsors will have to strike a balance, both in terms of their time/resources and over saturation of their content. As the balance of power between Affiliate programs & Super Affiliates is shifted, the Super Affiliates will demand more and more resources to keep their business. Sponsors profit margins will decrease, therefore stability or padding. Some programs will crash from "flying too close to the sun". Consolidation occurs as the market matures, and competition decreases. I can go on and on, but if you are still reading, then I hope you can see where I am going with this. Does it have to be like this? -----> -----> Am I missing something? ------> What do you think? -Jeff Random *I Am Not A Lawyer