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FSC’s Statement Regarding 2257 Agreement

Denver, Co. – The Free Speech Coalition (FSC) announced today a stipulation between the parties in Free Speech Coalition et al v. Alberto Gonzales, under which the U.S. Department of Justice agrees that the regulations relating to the federal record-keeping and labeling law, 18 U.S.C. §2257, will not be enforced against plaintiffs and all FSC members until September 7, 2005.

The U.S. District Court in Denver will hold a preliminary injunction hearing on August 8, 2005, after which the judge will determine whether to issue a further injunction.

Specifically, the DoJ will not conduct any inspections or pursue any claims with regard to the plaintiffs and their members, but reserves the right to inspect and prosecute anyone who is not a plaintiff or FSC member.

According to the stipulation, agreed to and issued as an order of the Court today, the DoJ, will submit any entity it intends to inspect to a Special Master who will then check the entity’s name against a sealed and confidential FSC membership list. The Special Master will be appointed by the Court, with the consent of the parties, and will be under a specific obligation to maintain the confidentiality of the FSC membership list.

A master list of members will be submitted to the Special Master on Wednesday June 29, 2005, and will include all FSC members as of 2:00 p.m. pacific standard time, Saturday June 25, 2005.

At no time will the DoJ have direct access to the FSC membership list, which will remain under seal.

All FSC members should advise the FSC office of all of their dbas by Monday, June 27, 2005, so that the master list will be as complete as possible.

On behalf of the entire adult entertainment industry, the FSC acknowledges the bravery and integrity of our co-plaintiffs, New Beginnings and Dave Cummings. We trust that the industry appreciates their willingness to take on the fight for justice on behalf of all of us.

The FSC also expresses appreciation to our extraordinary legal team: H. Louis Sirkin, Paul Cambria, Art Schwartz, Jennifer Kingsley, Roger Wilcox, Michael Gross, Barry Covert and Michael Deal. Special acknowledgement also to Michael Murray, whose agreement with the DoJ in the Connections Magazine case in Cleveland, Ohio, laid the groundwork for this agreement.

Over the course of the next few months, there will be continuing proceedings, including discovery, that culminate with the August 8, 2005 preliminary injunction hearing. While we remain optimistic regarding our ultimate success in the litigation, the FSC encourages everyone to try to comply with the law to the extent that it is possible.

Any questions can be emailed either to [email protected] or [email protected]. Please be patient. We ask that people not both call and email, as we will respond as soon as possible to all inquiries.

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