Sex Sells

Since the outset some of the most successful businesses on the Internet are those involved in the sex industry. However, many adult businesses in the UK have to make a choice between being “legal” and making a profit.

The questions you might want to ask as a supplier of R18 material might include: 

What is the current position?

The position is that adult pornographic video may only be offered for supply in the jurisdiction from a licensed sex shop.

The reasoning for this was examined recently in the Pabo (see below). All video supplied within the jurisdiction must be BBFC certificated. Adult material is likely to attract an R18 classification.

R18 product may only be supplied through licensed sex shops. The Pabo case also makes it clear that "the offence is the offer to make a supply....other than in a licensed sex shop" and therefore any offer to supply made elsewhere would fall foul of Pabo. Most businesses want to operate online and this simply is not allowed in English law.

Why can’t I supply via mail order from outside the jurisdiction?

The HMRC guidance on this is clear. T here is a legal framework in place intended to preclude the supply of "indecent or obscene" material from outside the jurisdiction. The defence counsel in the Pabo case alludes to the concept that:

"a prohibition on mail order within this country can be circumvented from abroad; something which the evidence shows is countenanced by HMRC."

The judgment deals clearly with this point: 

"it is no answer to say that the restrictions can be circumvented and so are not justified."

We do not recommend you base your business plan on the acquiescence of HMRC.

What can I do?  

• Set up in a jurisdiction with a more permissive regime - we can only advise on English Law but would be happy to manage this process for you in conjunction with relevant foreign lawyers.
• Pass certification costs onto a licensed provider - this is a commercial decision. We can help you arrive at that decision quickly and cost effectively.

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