FREE SPEECH COALITION, et al., Plaintiffs,
v.
Alberto GONZALES, Defendant.
No. CIVA05CV01126–WDM–BNB.
Dec. 28, 2005.
Background: Participants in adult entertainment industry
brought action against Attorney General, alleging that the recordkeeping
requirements of Child Protection and Obscenity Enforcement Act and associated
regulations were invalid as violative of their First Amendment and privacy
rights. Participants moved for preliminary injunction.
Holdings: The District Court, Miller, J., held
that:
(1) participants showed a substantial
likelihood of success of ultra vires claim;
(2) participants showed a substantial
likelihood of success of free speech claim for recordkeeping relating to
Internet chat rooms and as applied beyond websites controlled by producer;
(3) participants failed to show a substantial
likelihood of success of privacy claim;
(4) participants faced irreparable harm;
(5) balance of injuries tipped in favor of
granting a limited preliminary injunction; and
(6) public interest would not be adversely
affected by a properly constrained preliminary injunction.
Motion granted in part.
H. Louis Sirkin, Jennifer M. Kinsley, Sirkin, Pinales & Schwartz LLP,
Cincinnati, OH, Michael W. Gross, Schwartz & Goldberg, PC, Denver, CO,
Paul John Cambria, Jr., Roger Walter Wilcox, Jr., Lipsitz, Green, Fahringer, Roll,
Salisbury & Cambria, LLP, Buffalo, NY, for Plaintiffs.
Kurt J. Bohn, U.S. Attorney's Office, Denver, CO, Samuel C. Kaplan, U.S. Department of Justice, Washington,
DC, for Defendant.
ORDER ON PLAINTIFFS' MOTION FOR PRELIMINARY INJUNCTION
MILLER,
District Judge.
This matter is before me on the plaintiffs' motion for a
preliminary injunction. I have considered the parties' tendered evidence and
written and oral arguments and find that the motion should be granted in part.
Background
Plaintiffs Free Speech Coalition, Inc. (FSC),FN1
Free Speech Coalition of Colorado (FSCC), David Conners (Conners), and Lenjo,
Inc., d/b/a/ New Beginnings, Inc. (New Beginnings) (altogether “Plaintiffs”)
seek to enjoin enforcement of 18 U.S.C. § 2257 and the associated regulations against
them. Plaintiffs are all involved, in various capacities, in the adult
entertainment industry. Plaintiffs seek a preliminary injunction to protect
themselves from any enforcement action pending this litigation.
FN1.
FSC is a California trade association which represents more than six hundred
businesses and individuals involved in the production, distribution, sale, and
presentation of non-obscene, adult-oriented materials. Its mission is to
protect the First Amendment rights of its members. Compl., ¶ 9.
“Concerned about the exploitation of children by
pornographers, Congress enacted the Child Protection and Obscenity Enforcement
Act of 1988... to require producers of sexually explicit matter to maintain
certain records concerning the performers that might help law enforcement
agencies monitor the industry.” Sundance Assoc., Inc. v. Reno (Sundance ), 139 F.3d 804, 805 (10th Cir.1998). The relevant provisions of the Act were
codified in part at 18 U.S.C. § 2257, and established criminal and civil
liability for failures to create or maintain certain records by persons “produc[ing]”
matters containing “actual sexually explicit conduct.” 18 U.S.C. § 2257(a). In particular, § 2257(b) requires such “producers” to ascertain a performer's name
and date of birth through “examination of an identification document ... and
any other indicia of ... identity as may be prescribed by regulations,” as well
as any other name used by that performer and to record that information in the
records required by § 2257(a). However, the statutory definition of “produces” excludes
persons involved in “mere distribution or any other activity which does not
involve hiring, contracting for managing, or otherwise arranging for the
participation of the performers depicted.” 18 U.S.C. § 2257(h)(3).
In 2003, Congress amended § 2257 by passing the Prosecutorial Remedies and Other Tools to End the
Exploitation of Children Today (PROTECT) Act, which stiffened the applicable
penalties and expanded the definition of the term “produces” to include
creation of a “computer generated image, digital image, or picture.” Pub.L. No. 108–21, § 511, 18 U.S.C. § 2257(h)(3), (i).
§ 2257 also requires the Attorney General to “issue appropriate
regulations to carry out this section.” 18 U.S.C. § 2257(g). The Attorney General first promulgated
regulations on April 24, 1992, requiring, among other things,
producers to retain copies of the performers' identification
documents, to cross-index the records by all name(s) of each performer,
including any alias, maiden name, nickname, stage name or professional name of
the performer; and according to the title, number, or other similar identifier
of each book, magazine, periodical, film, videotape, or other matter, and to
maintain the records for a specified period of time.
Inspection of Records Relating to Depiction of
Sexually Explicit Performances, 70 Fed.Reg. 29607, 29608 (May 24, 2005). Additionally, the regulations defined
two types of “producer:” (1) the “primary producer,” who “actually films,
videotapes, or photographs a visual depiction of actual sexually explicit
conduct;” and (2) the “secondary producer,” who “produces, assembles,
manufactures, publishes, duplicates, reproduces, or reissues a book, magazine,
periodical, film, videotape, or other matter intended for commercial
distribution that contains a visual depiction of actual sexually explicit
conduct.” Sundance, 139 F.3d at 806 (quoting 28 C.F.R. § 75.2(a)). In 1998, the Tenth Circuit held that
the regulations were invalid as ultra vires to the extent they regulated
those whose activity “does not involve hiring, contracting for[,] managing, or
otherwise arranging for the participation of the performers depicted.” Id.
(quoting 18 U.S.C. § 2257(h)(3)).
Effective on June 23, 2005, the Attorney General amended
the regulations “to account for changes in technology, particularly the
Internet, and to implement the [PROTECT] Act.” Inspection of Records Relating to Depiction of
Sexually Explicit Performances, 70 Fed.Reg. at 29608. The updated regulations left in place
those portions declared invalid by the Sundance court.
The amended regulations, inter alia, (1) expanded
the “secondary producer” definition to include any person “who inserts on a
computer site or service a digital image of, or otherwise manages the sexually
explicit content of a computer site or service that contains a visual depiction
of an actual human being engaged in actual sexually explicit conduct, including
any person who enters into a contract, agreement, or conspiracy to do any of
the foregoing;” (2) expanded the record-keeping obligations of producers by
requiring them to keep (a) a copy of all visual depictions produced; and (b) “[w]here
the depiction is published on an Internet computer site or service, a copy of any URL associated with the depiction or, if no URL is associated with
the depiction, another uniquely identifying reference associated with the
location of the depiction on the Internet;” (3) continued various record
maintenance and cross-referencing requirements; (4) required that the street
address at which the records are kept be included in the compliance statement,
required to be displayed on media containing the depictions; (5) required that
producers keep a copy of a performer's identification card for depictions made
after July 3, 1995; and (6) required that producers make their records
available for inspections, including by making their records available for at least
twenty hours per week.
Plaintiffs argue that the statute and regulations are
invalid as violative of their First Amendment and privacy rights, and in any
case, the regulations, to the extent they apply to secondary producers,
contravene the Tenth Circuit's holding in Sundance.
Standard of Review
Because a preliminary injunction is an extraordinary
remedy, the right to relief must be clear and “unequivocal.” Greater Yellowstone Coal. v. Flowers, 321 F.3d 1250, 1256 (10th Cir.2003). See also SCFC ILC, Inc. v. Visa USA, Inc., 936 F.2d 1096, 1098 (10th Cir.1991). The decision to grant injunctive relief
is a matter of discretion. Id.
In order to obtain preliminary injunctive relief, the
moving party must establish: “ (1) a substantial likelihood of prevailing on
the merits; (2) irreparable harm unless the injunction is issued; (3) that the
threatened injury outweighs the harm that the preliminary injunction may cause
the opposing party; and (4) that the injunction, if issued, will not adversely
affect the public interest.” Valley Cmty. Pres. Com'n v. Mineta, 373 F.3d 1078, 1083 (10th Cir.2004). Additionally, if the movant can
establish that the latter three requirements “tip strongly in his favor ... the
[movant] may meet the requirement for showing success on the merits by showing
that questions going to the merits are so serious, substantial, difficult, and
doubtful as to make the issue ripe for litigation and deserving of more
deliberate investigation.” Flowers, 321 F.3d at 1256 (quoting Davis v. Mineta, 302 F.3d 1104, 1111 (10th Cir.2002)).
As reiterated in O Centro Espirta Beneficiente Uniao Do
Vegetal v. Ashcroft, the Tenth Circuit views as disfavored motions for the
following types of preliminary injunctions: those that (1) disturb the status
quo; (2) are mandatory as opposed to prohibitory; and (3) afford the movant
substantially all the relief he may recover at the conclusion of a full trial
on the merits. 389 F.3d 973, 975 (10th Cir.2004). See also SCFC ILC, Inc., 936 F.2d at 1098–99. A request for a “disfavored” injunction “should
be even more closely scrutinized [than a motion for a typical preliminary
injunction] to assure that the exigencies of the case support the granting of
... [such an extraordinary] remedy,” and the movant may not rely on the
modified-likelihood-of-success-on-the-merits standard. O Centro, 389 F.3d at 975.
Discussion
The first issue is whether Plaintiffs are seeking a
disfavored injunction, and whether they may rely on the Tenth Circuit's
modified likelihood of success on the merits standard. Defendant argues that, “because
plaintiffs seek to enjoin a statute whose basic requirements have been in
effect for more than a decade, as well as many aspects of the regulations that
have been in effect for a similar period, they are seeking to upset rather than
preserve the status quo.” (Def.'s Opp., at 9.) Plaintiffs, on the
other hand, note that the government has never initiated any inspections or
prosecutions under § 2257, and therefore argue that the status quo is an absence of enforcement.
First, as Defendant points out, the Tenth Circuit does not apply the “less
rigorous fair-grounds-for-litigation standard” where “a preliminary injunction
seeks to stay governmental action taken in the public interest pursuant to a
statutory or regulatory scheme.” Heideman v. South Salt Lake City, 348 F.3d 1182, 1189 (10th Cir.2003) (internal quotation omitted) (reviewing
preliminary injunction against nude dancing ordinance). Consequently,
regardless of whether they are seeking disfavored relief, Plaintiffs must
establish a substantial likelihood of success on the merits.
With regards to the status quo issue, I agree with
Defendant's characterization: the correct framing of the issue is not whether
the government was utilizing the statute and regulations, but whether it was
permitted to do so. However, this applies only to the regulations existing
prior to the amendment; to the extent Plaintiffs seek to enjoin enforcement of
new obligations under the June 23, 2005 regulations, they are not seeking a
disfavored injunction.
1. Success
on the Merits
Plaintiffs raise three general arguments: (1) the new
regulations are ultra vires under the rationale of Sundance,
because they define the term “secondary producer” to include activities
explicitly excluded by § 2257; (2) the statute and regulations violate their rights under the
First Amendment by chilling, if not effectively banning, their dissemination of
constitutionally protected expression; and (3) the same violate their rights to
privacy.
A. Ultra
Vires
§ 2257 generally requires that any person who “produces any book,
magazine, periodical, film, videotape, or other matter” containing actual
sexually explicit conduct “create and maintain individually identifiable
records pertaining to every performer portrayed in such a visual depiction.”
The statute defines the term “produces” as meaning:
to produce, manufacture, or publish any book, magazine,
periodical, film, video tape, computer generated image, digital image, or
picture, or other similar matter and includes the duplication, reproduction, or
reissuing of any such matter, but does not include mere distribution or
any other activity which does not involve hiring, contracting for managing, or
otherwise arranging for the participation of the performers depicted
18 U.S.C. § 2257(h)(3) (emphasis added).
As noted above, Defendant's regulations interpret the
statute as applying to two types of “producers” to whom the statute and
regulations apply: (1) primary producers, identified as including any person
who “actually films, videotapes, photographs, or creates a digitally— or
computer-manipulated image, a digital image, or picture of, or digitizes an
image of, a visual depiction of an actual human being engaged in actual
sexually explicit conduct,” 28 C.F.R. § 75.1(c)(1); and (2) secondary producers, identified
as including:
any person who produces, assembles, manufactures,
publishes, duplicates, reproduces, or reissues a book, magazine, periodical,
film, videotape, digitally- or computer-manipulated image, picture, or other
matter intended for commercial distribution that contains a visual depiction of
an actual human being engaged in actual sexually explicit conduct, or who
inserts on a computer site or service a digital image of, or
otherwise manages the sexually explicit content of a computer site or service
that contains a visual depiction of an actual human being engaged in actual
sexually explicit conduct, including any person who enters into a contract,
agreement, or conspiracy to do any of the foregoing.
28 C.F.R. § 75.1(c)(2). The regulation excludes persons whose
activities are limited to (1) certain photo or film processing activities, (2)
mere distribution, (3) “any activity, other than those activities identified
in paragraphs (c)(1) and (2) of this section, that does not involve the
hiring, contracting for, managing, or otherwise arranging for the participation
of the depicted performers,” (iv) providing web-hosting services where control
of content is impracticable; and (v) providing electronic communications services.
28 C.F.R. § 75.1(c)(4) (emphasis added).
In Sundance Associates v. Reno, the Tenth Circuit
held that the prior regulations' defining of “producer” to apply to both
primary and secondary producers was invalid because it “clashe[d] impermissibly”
with the statutory definition of “produces.” 139 F.3d at 806.FN2
The court noted that under Chevron USA v. NRDC, 467 U.S. 837, 842, 104 S.Ct. 2778, 81 L.Ed.2d 694
(1984), the first
question was whether “Congress has directly spoken to the precise question at
issue,” and that if the statute is clear and unambiguous, the court should
interpret the statute according to its plain language and afford the agency
interpretation no deference. Id. at 807 (quoting K Mart Corp. v. Cartier, Inc., 486 U.S. 281, 291, 108 S.Ct. 1811, 100 L.Ed.2d 313
(1988)).
FN2.
Defendant does not dispute that the current regulations' provisions regarding
primary and secondary producers are indistinguishable from those at issue in Sundance.
The court found that § 2257's language was clear and unambiguous. It excluded from the
regulation “those who basically have had no contact with the performers (mere
distributors and others not involved in the ‘hiring, contacting for[,]
managing, or otherwise arranging for the participation of the performers
depicted’).” Id. at 808. The Court concluded that the Attorney General's
regulations improperly failed to “exclude persons from the class that the
statute requires.” Id. The court rejected the Attorney General's
argument that the regulations' comprehensive regulatory scheme was necessary to
adequately enforce the record keeping requirements, noting that although the
Attorney General may have identified a problem with the statute, “neither the
court nor the Attorney General has the authority to rewrite a poor piece of
legislation.... That responsibility lies solely with Congress.” Id. at
810. Consequently, the court ordered the clause “other than those activities
identified in paragraphs (c)(1) and (2) of this section” be stricken from the
regulation.
Plaintiffs argue that Sundance mandates that the
current regulations, which maintain the same language found invalid by the Sundance
court, are likewise invalid. In response, Defendant argues that he is asserting
a new interpretation of § 2257, which is reasonable and therefore entitled to deference, and
that Congress acquiesced in his belief that § 2257(h) applies to secondary producers because Congress amended
the provision via the PROTECT Act, and failed to alter the definition despite
knowledge of his interpretation. See Catron County Bd. of Comm'rs v. U.S. Fish &
Wildlife Serv., 75 F.3d 1429, 1438 (10th Cir.1996).
None of Defendant's arguments change the reality that Sundance
is binding upon me. The Tenth Circuit specifically held that § 2257(h) is unambiguous and that plain language of the
statute excludes persons “who basically have had no contact with the
performers.” 139 F.3d at 808. The amendment does not alter the relevant
language, or somehow render the provision ambiguous.FN3
Accordingly, even were I to agree that the statute is ambiguous, I am bound by
principles of stare decisis to hold that the statute is unambiguous.
Only the Tenth Circuit or the Supreme Court can change established Tenth
Circuit precedent. See United States v. Mitlo, 714 F.2d 294, 298 (3d Cir.1983).
FN3.
As noted, the PROTECT Act only amended the definition of “produce” to include “computer
generated image, digital image, or picture.” See Pub.L. 108–21, Section 511, at 685.
Defendant's argument that Congress acquiesced in his
interpretation of “producer” fails for the same reason. As the Catron County
court noted, the congressional acquiescence theory is a species of legislative
history analysis. 75 F.3d at 1438. Here, where congressional intent may be
determined from the plain language of the statute, interpretation is not
necessary and the doctrine plays no role.FN4
See Brown v. Gardner, 513 U.S. 115, 121, 115 S.Ct. 552, 130 L.Ed.2d 462
(1994) (quoting
Demarest v. Manspeaker, 498 U.S. 184, 190, 111 S.Ct. 599, 112 L.Ed.2d 608
(1991)) (“where
the law is plain, subsequent reenactment does not constitute an adoption of a
previous administrative construction”).
FN4.
Defendant also points to the adoption of the Protect Act subsequent to the
decision of Am. Lib. Assoc. v. Reno, 33 F.3d 78 (D.C.Cir.1994) upholding § 2257 and the 1992 regulations and argues that the reenactment of the applicable
provisions indicates Congress' agreement with the Reno interpretation. See
Lorillard v. Pons, 434 U.S. 575, 580–81, 98 S.Ct. 866, 55 L.Ed.2d 40
(1978). Plaintiffs
make the countervailing argument that the Sundance decision also
antedated the Protect Act leading to the opposite conclusion. Given my “plain
meaning” ruling, I need not resolve this potential conflict.
Consequently, Plaintiffs have shown a substantial
likelihood of success of establishing that the statute and regulations may not
be enforced as to secondary producers who are not involved in any activity that
involves “hiring, contracting for managing, or otherwise arranging for the
participation of the performers depicted.” § 2257(h)(3).
B. First
Amendment
Plaintiffs argue that § 2257 and the regulations unlawfully infringe upon rights protected
under the First Amendment. They first claim that the substantial record-keeping
obligations make compliance impossible, and thus operate as a “prior restraint”
by inducing self-censorship chilling protected speech. However, it is clear
that the statute and regulation do not constitute a “prior restraint” as
traditionally described by the Supreme Court. See Alexander v. United States, 509 U.S. 544, 550, 113 S.Ct. 2766, 125 L.Ed.2d 441
(1993) (quoting
M. Nimmer, Nimmer on Freedom of Speech § 4.03, p. 4–14 (1984)) (“The term prior
restraint is used ‘to describe administrative and judicial orders forbidding
certain communications when issued in advance of the time that such
communications are to occur.’ ”). Regardless, whether the statute and
regulations are framed as a de facto “prior restraint” or a de facto “ban,”
none of the cases Plaintiffs rely on provide me with any basis for analyzing
the statute and regulations with the level of scrutiny required for a law that
actually forbids expression. For instance, Plaintiffs place great reliance on Ashcroft
v. Free Speech Coalition, where the Court held that “government may not
suppress lawful speech as the means to suppress unlawful speech.” However, Ashcroft
*1205 dealt with an express ban on computer-created, or “virtual” images
of child pornography, not regulations like those in this case, which although
they may burden Plaintiffs' expression,FN5
do not simply illegalize it.FN6
FN5.
The extent of the burden on Plaintiffs' expression is discussed infra.
FN6.
Similarly, Plaintiffs cite to Simon & Schuster, Inc. v. Members of New York
State Crime Victims Board, 502 U.S. 105, 121–22, 112 S.Ct. 501, 116 L.Ed.2d 476
(1991) for the
proposition that regulatory burdens on expression can be so severe as to constitute
a de facto ban on expression. The Court did not so hold. Rather, in that case,
the Court found the “Son of Sam” law-which required that an accused or convicted
criminal's income from works describing his crimes be made available to victims
and creditors-was unconstitutional under the First Amendment because the law
was overinclusive, namely that it “reache[d] a wide range of literature that
does not enable a criminal to profit from his crime while a victim remains
uncompensated,” and which was therefore outside the state's compelling
interest. Id. at 122, 112 S.Ct. 501.
Furthermore, Plaintiffs do not provide convincing evidence
that the impact of the statute and regulations effectively ban sexually
explicit expression. Rather, as discussed below, most of the obligations
imposed by the statute and regulations have been in place for over ten years,
yet the output of the adult entertainment industry has grown, not dwindled.
Plaintiffs also argue that “section 2257 was deliberately designed to reverse [the] constitutional
presumption” that sexually explicitly expression is generally protected by
banning expression unless its proponents demonstrate that it is lawful.FN7
(Pl.'s Suppl. Mem. at 4, citing Chaplinsky v. New Hampshire, 315 U.S. 568, 572, 62 S.Ct. 766, 86 L.Ed. 1031 (1942)). See also Ashcroft, 535 U.S. at 255, 122 S.Ct. 1389 (suggesting that “[t]he Government raises
serious constitutional difficulties by seeking to impose on the defendant the
burden of proving his speech is not unlawful,” but finding it unnecessary to
determine if such an attempt was constitutional). However, even assuming there
is such a presumption (which Chaplinsky, at least, does not establish),
as discussed above, the statute and regulations do not ban Plaintiffs'
expression.
FN7.
Using the hypothetical that the records are lost or destroyed, Plaintiffs argue
that the statute and regulations are unconstitutional because communication of
that lost or destroyed depiction becomes unlawful, even if there is no question
that the performers involved were adults. While this argument may raise a
constitutional issue in an as-applied context, the Supreme Court has held that
a statute may not be invalidated on a facial challenge simply “because some persons'
arguably protected conduct may or may not be caught or chilled by the statute.”
Broadrick v. Oklahoma, 413 U.S. 601, 618, 93 S.Ct. 2908, 37 L.Ed.2d 830
(1973).
Next, Plaintiffs argue that § 2257 and the regulations are content-based restrictions which are
overbroad and fail to adequately advance the government's asserted interest.
The parties first dispute whether I should apply strict or intermediate
scrutiny to the statute and regulations. Two courts of appeals have examined
First Amendment challenges to § 2257 and the implementing regulations, and have concluded that because
the statute and regulations are content neutral, intermediate scrutiny applies.
Connection Dist. Co. v. Reno, 154 F.3d 281, 291 (6th Cir.1998); Am Lib. Assoc. v. Reno, 33 F.3d 78, 91. Plaintiffs dispute that the statute and
regulations are content-neutral, arguing that they “impose[ ] additional
burdens on protected speech purely on the basis of the content of that speech.”
(Pl.'s Prehrg Br., at 14.) Nonetheless, I find that intermediate scrutiny
should apply as I agree with the Sixth Circuit's finding that “[t]he
government's goal of preventing child pornography through the record-keeping
provisions of the Act clearly is not an attempt to regulate the speech of
[Plaintiffs] because of disagreement with the messages they convey.” See Connection Distrib. Co., 154 F.3d at 290. See also Heideman 348 F.3d at 1195 (ordinance banning complete nudity at
sexually oriented businesses is subject to no more than intermediate scrutiny “because
the governmental purpose is based on the secondary effects of nudity in
sexually oriented businesses rather than on disagreements with the content of
the message”).
Under intermediate scrutiny, “a government regulation is constitutional if the
obligations it imposes are ‘narrowly tailored to serve a significant
governmental interest, and leave open ample alternative channels for
communication of the information’.” Connection Distrib. Co., 154 F.3d at 291 (quoting Ward v. Rock Against Racism, 491 U.S. 781, 791, 109 S.Ct. 2746, 105 L.Ed.2d 661
(1989)). It does
not appear to be disputed that the governmental interest put forward-preventing
child pornography-is significant, if not compelling. (See Pl.'s Supp.
Mem., at 6.)
To
be narrowly tailored, a regulation must “not burden substantially more speech
than is necessary to further the government's legitimate interests.” Am. Lib. Assoc., 33 F.3d at 88 (quoting Bd. of Trustees of State Univ. of New York v. Fox, 492 U.S. 469, 478, 109 S.Ct. 3028, 106 L.Ed.2d 388
(1989)). See
also Connection Distrib. Co., 154 F.3d at 293 (quoting Ward, 491 U.S. at 799, 109 S.Ct. 2746) (regulation is narrowly tailored “so long
as the regulation promotes a substantial government interest that would be
achieved less effectively absent the regulation”).
Plaintiffs first argue that Defendant has failed to advance
any concrete evidence to justify the statute and regulations, specifically
arguing that there is no evidence that regulated producers such as themselves
ever create material involving persons under the age of 18, or that the record
keeping or labeling requirements impact child pornographers. See City of Los Angeles v. Alameda Books, 535 U.S. 425, 449, 122 S.Ct. 1728, 152 L.Ed.2d 670
(2002) (Kennedy,
J., concurring) (“a city must advance some basis to show that its regulation
has the purpose and effect of suppressing secondary effects, while leaving the
quantity and accessibility of speech substantially intact”). They claim that
the statute unduly burdens legitimate producers of adult pornography and regulates
expression in a manner that a substantial portion of the burden does not serve
to advance its goals. See Ward v. Rock Against Racism, 491 U.S. 781, 799, 109 S.Ct. 2746, 105 L.Ed.2d 661
(1989).
Plaintiffs do not convince me that the statute and regulations do not advance
the government's interest in preventing child pornography. According to the
D.C. Circuit, § 2257 advances the abatement of child pornography in fundamental ways:
By requiring that primary producers inspect and make a
record of documentary evidence of the performers' ages and, in turn, that
secondary producers inspect and retain a copy of the same, section 2257 forwards three goals: It ensures that primary producers
actually confirm that a prospective performer is of age; it deters children
from attempting to pass as adults; and, most important, it creates the only
mechanism by which secondary producers (who by definition have no contact with
performers) can be required to verify the ages of the individuals
pictured in the materials they will be producing. FN8
FN8.
Of course, this latter means of forwarding the statute's goals-creating a
mechanism to require secondary producers to verify ages of performers-is
invalid under Sunset to the extent such producers had no contact with
the performers.
ALA, 33 F.3d at 88–89. See also Connection Distrib. Co., 154 F.3d at 292 (“universal requirement of age
disclosure, regardless of the apparent age of an individual in a visual
depiction, is critical to the government's interest in ensuring that no minors
are depicted in actual sexual conduct”). It appears undisputed that there is a
significant market for pornography involving young-looking performers. See
Joint Exhibit 1 and its attached exhibits. Such a demand creates a risk of
under-age participation which can be prevented or discouraged by disclosure and
reporting requirements.
Such a common sense conclusion is certainly within the
realm of congressional authority. “In reviewing the constitutionality of a
statute, courts must accord substantial deference to the predictive judgments
of Congress.” Turner Broadcasting Sys., Inc. v. F.C.C. 520 U.S. 180, 195, 117 S.Ct. 1174, 137 L.Ed.2d 369
(1997). See
also Florida Bar v. Went For It, Inc., 515 U.S. 618, 628, 115 S.Ct. 2371, 132 L.Ed.2d 541
(1995) (noting
that the Court has allowed the government “to justify restrictions based solely
on history, consensus, and simple common sense”); Alameda Books, 535 U.S. at 438, 122 S.Ct. 1728 (“a municipality may rely on any evidence
that is “reasonably believed to be relevant” for demonstrating a connection
between speech and a substantial, independent government interest”). In
particular, although I accept that Plaintiffs themselves would not knowingly
engage in child pornography, it only makes sense, given extensive demand for
pornography involving young-looking performers, to conclude that there is a
substantial risk that performers under the age of 18 will be used in such
materials. This risk necessitates government regulatory efforts, including
imposing on producers of pornography mandatory age-checking and record-keeping
to provide a shield against child pornography.
Plaintiffs next argue that the burden imposed by the
statute and regulations is severe and overbroad in scope. Because I have
already determined that Plaintiffs have established a substantial likelihood of
success with regards to the statute's application to some secondary producers
under Sundance, I will focus on the burden on producers who remain
regulated.
As
to obligations existing prior to the promulgation of the June 2005 regulations,
Plaintiffs fail to overcome Defendant's suggestion that there has been no
noticeable impact on the quantity of sexually explicitly speech from the
enactment of § 2257 or promulgation of the earlier regulations. FN9
Rather, Defendant notes that plaintiff David Conners, who runs a “one man”
production company, has produced 41 movies, plaintiff New Beginnings has sold
at least 1 million sexually explicit films, and the number of United
States-based websites containing sexually explicit speech has boomed to
500,000.FN10
Given the Plaintiffs' heightened burden under O Centro, their failure to
respond with evidence demonstrating a negative impact on sexually
explicit speech is fatal to their quest to preliminarily enjoin these
pre-existing obligations.FN11
FN9.
Plaintiffs do note that the government has not conducted a single inspection in
the 17 years since the statute was enacted.
FN10.
Although some of these examples may involve producers who cannot be regulated
under Sundance, nonetheless, their output seems to reflect the general
health of the industry.
FN11.
This also applies to plaintiff New Horizon's concern with the labeling requirements,
which have been in place since 1992. See 57 Fed.Reg. at 150228; 28 C.F.R. § 75.6 (1992).
With regard to the new obligations, Plaintiffs primarily object to 28 C.F.R. § 75.2(a)(1), which requires that a producer keep: (1)
a copy of the depiction; and (2) when the depiction is published on the
Internet, a copy of any URL or other identifying reference associated with the
depiction.
Plaintiffs first assert that the requirement that they keep
a copy of each depiction is itself unduly burdensome, as it would require
producers to incur substantial storage costs. They provide the affidavit from
plaintiff Conners asserting that he will have to cease operation of his
websites should the regulations not be enjoined. However, Defendant provides evidence
from Plaintiffs' own witness that website operators generally keep a copy of
each depiction they post on their website as a matter of course for business
purposes. (Douglas Dep., at 112) (deponent “can't think of a reason you would
ever delete an image”). Furthermore, Defendant demonstrates that large numbers
of depictions can be electronically stored by purchasing hard drives at
insubstantial prices.FN12
FN12.
For instance, the expert asserted that a large website, that offered 40,000
videos on its site, could comply by purchasing $600 worth of additional hard
drives, and that websites that offer only still pictures could comply by
purchasing one $120 hard drive. Schmidt Declaration, ¶¶ 10 and 11.
I also find Conners' somewhat conclusory assertions of
hardship suspect in light of his demonstrated ignorance of computer technology,
and refusal to seek guidance from his more computer-literate partners. (Conners
Dep. at 66, 108.)
The final prong of the intermediate scrutiny test is whether the statute and
regulations leave open ample alternative channels for communication of the
information. Am. Lib. Assoc., 33 F.3d at 88. Defendants note that, giving the
Plaintiffs the benefit of the doubt, they have identified only one magazine and
perhaps ninety (out of 500,000) websites that will be forced to cease
production based on the statute and regulations. As a result, Plaintiffs have
failed to demonstrate a substantial likelihood that the statute and regulations
fail to “leav[e] the quantity and accessibility of speech substantially intact.”
Alameda Books, 535 U.S. at 449, 122 S.Ct. 1728 (Kennedy, J., concurring).
Consequently, on the record before me, Plaintiffs have not
met the preliminary injunction standard to show a substantial likelihood that
the requirement to keep a copy of each depiction is overly burdensome-with two
exceptions.
The first exception is the so-called live Internet chat
rooms. These involve a performer on the Internet who engages in printed or
telephonic dialogue with a customer while a simultaneous video image of the
performer is transmitted. The performances usually involve actual sexually
explicit conduct. (Aff. of Jeffrey Douglas, ¶ 22). A primary producer may
operate scores of different rooms or channels for 24 hours on every day of the
year. Id. at ¶ 23. Prior to the new regulation the plaintiff took the
position that the chat rooms were not covered by § 2257 or the previous regulation. Id. at ¶ 22. Without deciding
the particular issue, I assume that the chat room would fall within the
definition of a “matter” covered by § 2257.See 18 U.S.C. 2257(h)(3)(“the term ‘produces' means to produce ...
or publish any ... computer-generated image, digital image, or picture, ...”).
The requirement that the producer keep a copy of the depiction was not present
in the previous regulation and hence the apparent practice of not recording
each chat room would not otherwise be violative of the regulation. It is a
reasonable reading of the new regulation, however, that it requires the
producer of the “digitally-or computer-manipulated image, digital image,
picture or other matter that contains a depiction of actual human being engaged
in actual sexually explicit conduct” maintain a “copy of the depiction.” 28 C.F.R. § 75.2(a)(1)(i). Plaintiffs assert that to do so would
involve extraordinary computer capacity of terabytes (1 trillion bytes) and
petabytes (1 quadrillion bytes) on an annual basis which could cost as much as
$15 million dollars annually. (Aff. of Jeffrey Douglas at ¶ 23.) Defendant does
not present any contravening testimony concerning chat rooms.
This evidence may present a substantial likelihood that the
regulation is not narrowly tailored with regard to chat rooms since it may well
burden substantially more speech than is necessary to further the government's
legitimate interest. See Am. Lib. Assoc., 33 F.3d at 88 and Connection Dis. Co., 154 F.3d at 293. It is not disputed that the performer is
often engaged in conduct or actions which are not sexually explicit. Further,
as the government has argued, it does not seek to ban any expression but rather
combat child pornography. Particularly with regard to the circumstance of the
chat room, a narrow tailoring may well require no more than the identification
of the performer as otherwise prescribed without the necessity of maintaining a
copy of the entire time of depiction. Without deciding precisely how such a
regulation may be constitutionally tailored at this juncture of the litigation,
I simply conclude that plaintiffs have established a substantial likelihood of
success on this particular issue.
Plaintiffs have also met their burden to the extent that
producers are required to keep a copy of any URL (or other identifying
reference) associated with a depiction published on the Internet, regardless of
whether the producer has control over the website which posts the depiction. At
the hearing, defense counsel represented that producers were only responsible
for recording those URLs from websites which they themselves controlled.
The regulation is not clear on this issue, and merely
states that “[w]here the depiction is published on an Internet computer site or
service, a copy of any URL associated with the depiction [is required]
....” 28 C.F.R. § 75.2(a)(1)(ii) (emphasis added). But, even
Defendant's expert witness testified that it would be impossible to comply with
this requirement. (Schmidt Dep., at 143.) Therefore, I consider Defendant's
representation at the hearing that the regulation does not require producers to
maintain copies of depictions on websites outside of their control a concession
that such a requirement would be invalid and that he may be enjoined from
enforcing such a requirement. Consequently, to the extent § 75.2(a)(1)(ii) requires a producer to maintain records of URLs or
other identifying information from websites outside of the producer's control,
Plaintiffs have demonstrated a substantial likelihood that this is overly
burdensome.
In summary, I find that Plaintiffs have not demonstrated a
substantial likelihood of success in demonstrating that the amended portions of
the statute and regulations create an undue burden, with the exception of § 75.2(a)(1)(I) applied to chat rooms and § 75.2(a)(1)(ii) applied beyond websites controlled by the producer.
C. Privacy
Rights
Plaintiffs also argue that the statute and regulations violate the privacy
rights of (1) performers by requiring that primary producers provide secondary
producers with a copy of the performer's identification card, which may have
information such as residential addresses, etc; and (2) producers who work out
of their homes by mandating disclosure of the actual place of business on a
label.
The Supreme Court has found that certain privacy interests
are protected by the Constitution. See Lawrence v. Texas, 539 U.S. 558, 564, 123 S.Ct. 2472, 156 L.Ed.2d 508
(2003) (state
could not make private homosexual conduct a crime, as adults are entitled to
engage in private conduct under the Fourteenth Amendment); Stanley v. Georgia, 394 U.S. 557, 567, 89 S.Ct. 1243, 22 L.Ed.2d 542
(1969) (First and
Fourteenth Amendment prohibit making mere private possession of obscene material
a crime).FN13
See also Buckley v. Am. Const. Law Fdn., Inc., 525 U.S. 182, 200, 119 S.Ct. 636, 142 L.Ed.2d 599
(1999) (requiring
individuals circulating petitions to wear name badge violates First Amendment
because it discouraged speech without sufficient cause). Furthermore, under
some circumstances the First Amendment provides a right to anonymous speech. McIntyre v. Ohio Elections Comm'n, 514 U.S. 334, 341–42, 115 S.Ct. 1511, 131 L.Ed.2d 426
(1995).
FN13.
Plaintiffs cite National Archives & Records Admin. v. Favish, 541 U.S. 157, 124 S.Ct. 1570, 158 L.Ed.2d 319 (2004) as supporting a constitutional privacy
right to prevent disclosure of private information; however, the case relied on
a statutory right under FOIA, not the Constitution.
However, the cases which might arguably support Plaintiffs' position, Buckley
and McIntyre, both addressed laws impacting political speech, which,
despite Plaintiffs' counsel's protestations to the contrary, is viewed
differently than pornography under First Amendment case law. See McIntyre, 514 U.S. at 346, 115 S.Ct. 1511 (political speech “occupies the core of
the protection afforded by the First Amendment” and therefore laws regulating
political speech are subject to exacting scrutiny); Buckley, 525 U.S. at 186–87, 119 S.Ct. 636 (quoting Meyer v. Grant, 486 U.S. 414, 425, 108 S.Ct. 1886, 100 L.Ed.2d 425
(1988)) (petition
circulation is “core political speech” for which First Amendment protection is “at
is zenith”). Even in the context of political speech, invalidating disclosure
requirements requires evidence of “a reasonable probability that the compelled
disclosure of ... names will subject them to threats, harassment or reprisals
from either Government officials or private parties.” McConnell, 124
S.Ct. at 692 (quoting Buckley, 424 U.S. at 74, 96 S.Ct. 612). Plaintiffs provide evidence of only one
instance of identity theft resulting from § 2257 records, and a vague assertion by a performer that she is aware “of
a number of instances in the past two decades where adult performers have been
stalked by fans.” (Hartman Decl., ¶ 9.) This is insufficient to establish a
reasonable probability of harm resulting from the regulations.
Furthermore, neither of the requirements objected to by
Plaintiffs are new; yet again, they fail to provide any indication that the
quantity of explicit speech has diminished due to these requirements. Cf. Buckley, 525 U.S. at 198, 119 S.Ct. 636 (describing evidence that name badge
requirement for petition bearers discouraged individuals from participating in
petition drives).
Finally, with regard to the performers' privacy concerns, they appear to relate
entirely to the disclosure of their identification cards to secondary
producers. However, I have already ruled that the statute and regulations
should not be applied to some secondary producers under Sundance.
Furthermore, Defendant notes that there is no reason why the address on ID
cards could not be redacted to protect the performers' confidential
information, including address, actual day of birth, social security number,
etc. Under these circumstances, Plaintiffs' have not demonstrated a substantial
likelihood of success with regards to their claim that the statute and
regulations infringe upon protected privacy rights.
2. Irreparable
Harm
Plaintiffs argue that deprivation of First Amendment rights, if but for a
moment, constitutes irreparable harm. See Elrod v. Burns, 427 U.S. 347, 343, 96 S.Ct. 2673 (1969) (the loss of First Amendment freedoms,
for even minimal periods of time, unquestionably constitutes irreparable
injury). See also Connection Distrib. Co., 154 F.3d at 288 (“to the extent [plaintiff] can establish
a substantial likelihood of success on the merits of its First Amendment
claims, it has also established the possibility of irreparable harm as a result
of the deprivation of claimed free speech rights).” Plaintiffs have so established
with regard to application of § 75.2 to chat rooms and websites not controlled by the producer.
Otherwise, plaintiffs have not established a likelihood of success on their
First Amendment claim.
As to the ultra vires argument, there is an independent showing of
irreparable harm. It is clear that requiring producers who cannot be regulated
under Sundance to comply with the statute and regulations would require
them to either risk criminal prosecution or incur a variety of significant
obligations and costs. Although not emphasized by Plaintiffs, they provide
evidence that such compliance costs constitute irreparable harm. For instance,
plaintiff New Horizons, a wholesale distributor of adult entertainment
materials, provides evidence that compliance with the regulations and statute
will result in the loss of tens of thousands of dollars based on the impact on
its advertising. (Friedlander Decl., ¶ 29.) Secondary producers will incur
additional, if unquantified, costs in storing, organizing and maintaining the
required records, and primary producers such as Conners will face costs in
complying with secondary producer requests for the required records. (Conners
Decl., ¶¶ 16–17.)
Additionally, FSC members who would constitute secondary
producers relied on the Sundance decision and did not obtain the
required records from primary producers, and therefore will be required to
remove from their publications a great quantity of depictions. (Douglas Aff.,
¶¶ 31–33.) Defendant argues that a movant may not rely on irreparable harm that
is self inflicted to support a motion for a preliminary injunction, and thus,
to the extent they placed themselves in harm's way by unreasonably relying on Sundance,
they may not show irreparable harm. I disagree that Plaintiffs acted
unreasonably by relying on the decision of the one court of appeals that has
directly addressed the issue.
There is no indication that, should Plaintiffs ultimately
obtain a ruling in their favor, they could obtain any legal relief or other
compensation for the costs they incur based on the invalid application of the
statute and regulations. Under these circumstances, I find that Plaintiffs face
irreparable harm absent an injunction preventing Defendant from enforcing the *1212
statute and regulations against secondary producers who do not have direct
contact with the performers.
3. Balance
of Injuries
Defendant argues that an injunction will greatly increase the likelihood of the
distribution of child pornography during the period of the injunction. However,
as Plaintiffs point out, the force of this assertion is somewhat diminished by
the Department of Justice's failure to actively utilize the statute. More
importantly, this injunction would prevent enforcement of the statute and
regulations only against Plaintiffs, and then, only to the limited extent
indicated.
I do not accept Plaintiffs' argument that Defendant will
suffer no harm due to imposition of an injunction. Nonetheless, given its
limited scope, I conclude that, on balance, Plaintiffs face the greater injury.
4. Public
Interest
Clearly there is a great public interest in preventing child pornography.
However, Defendant must act within the scope of the his lawful authority in
doing so, and Plaintiffs argue convincingly that his application of the
regulations to all “secondary producers” is outside that authority. See Sundance, 139 F.3d at 810 (“neither the court nor the Attorney General
has the authority to rewrite a poor piece of legislation”). Nor is it in the
public interest to acquiesce in Defendant's disregard for the only appellate
decision precisely on point, and which is binding law in this Circuit. Under
these circumstances, I find that a properly constrained preliminary injunction
would not adversely affect the public interest.
5. Bond
I accordingly conclude that Plaintiffs have met their
burden to obtain a preliminary injunction to a limited extent. However, Fed.R.Civ.P. 65(c) prescribes that a preliminary injunction
should be conditioned upon security for payment of such costs and damages as
may be suffered by the wrongfully enjoined party. The parties do not inform me
concerning bond issues other than Plaintiffs assertion that no bond should be
required. I do have the discretion not to require security after giving
consideration to the circumstances of the case that may “justify the unusual
practice of leaving the enjoined party bereft of security.” Coquina Oil Corp. v. Transwestern Pipeline Co., 825 F.2d 1461, 1462 (10th Cir.1987). There may well be arguments for
dispensing with security, but at this point I conclude that the defendant will
at least be entitled to his costs in the event is it ultimately determined that
he was wrongfully enjoined. Accordingly, I will condition the injunction upon
the security of a $10,000 bond without prejudice to either party arguing that
the bond should be increased or decreased.
Accordingly, it is ordered:
1. Plaintiff's motion for a temporary restraining order,
filed June 16, 2005 (Docket # 2), subsequently converted to a motion for
preliminary injunction at the hearing held June 23, 2005, is granted in part.
2. Defendant is enjoined, pending the outcome of these
proceedings or further order, from treating any of the Plaintiffs or members of
plaintiff Free Speech Coalition as “producers” under 28 C.F.R. part 75 or
persons or entities “produc[ing]” any book, magazine, periodical, film,
videotape, or other matter containing one or more visual depictions of actual
sexually explicit conduct under 18 U.S.C. § 2257, to the extent that plaintiff or member
of plaintiff Free Speech Coalition's activity does not *1213 involve the
hiring, contracting for, managing, or otherwise arranging for the participation
of the depicted performer.
3. Defendant is enjoined, pending the outcome of these
proceedings or further order, from enforcing 28 C.F.R. § 75.2(a)(1)(i) against any of the plaintiffs or
members of FSC in their operation of an Internet chat room.
4. Defendant is enjoined, pending the outcome of these
proceedings or further order from the court, from enforcing 28 C.F.R. § 75.2(a)(1)(ii) against any of the Plaintiffs or
members of FSC with regards to a website that is not controlled by that
plaintiff or member of the Free Speech Coalition.
5. The preliminary injunction is conditioned upon
Plaintiffs providing a $10,000 bond.
6. Either party may show cause on or before January 9,
2006, why the security should be increased or decreased.
7. This injunction is binding upon the parties to this
action, their officers, agents, servants, employees, and attorneys, and upon
those persons in active concert or participation with them who receive actual
notice of this order by personal service or otherwise.
8. Otherwise, Plaintiffs' motion is denied.
9. Plaintiffs' motion to appoint special master (docket no.
17) is denied as moot.