At its most basic level, the live webcam phenomenon is merely the next technological extension of the live phone sex craze that started in the 1980s. Today, anyone with a digital camera, a legible picture ID card (evidencing their age of majority), and a healthy dose of exhibitionism, can become a cam girl (or guy, etc, as the case may be). But in addition to being a performer, these individuals must also often take on the roles of publisher, producer, photographer, editor, promoter, and legal records custodian. The details of each relationship between the cam girl and the website operator (assuming these are not one and the same), will significantly impact the additional obligations imposed upon the performer. Given the relatively minimal legal and business training provided to the typical webcam performer before she first clicks the “broadcast now” button —to the delight of her ogling fans —this situation is fraught with legal danger. Webcam performers (and website operators) must be knowledgeable in complex legal issues such as 18 U.S.C §2257 compliance, publicity laws, copyright assignments, obscenity laws, deceptive trade practices, trademark concerns, and a variety of other media law issues. These laws can have both civil and criminal sanctions, if not carefully observed. In short, the modern-day adult webcam performer needs to be a “Jack(y) of all trades,” with little room for error.
Source: http://www.xbiz.com/articles/legal/169512As with all evolving business models, it will take some time for the courts to clarify the legal rules that will be used to impose liability on the various actors responsible for civil or criminal violations in the webcam arena. During this developmental period, webcam models will struggle to multitask their various roles involved with self-produced content. The webcam business model, given its global nature and sexually charged theme, will challenge the prosecutors, judges and lawyers called upon to help shape the law in this fascinating field.