It was a stupid prosecution brought about by stupid lawyers trying to make names for themselves, IMO.
Essentially, Stagliano was indicted in April 2008 by a federal grand jury with seven different obscenity charges related to operating an obscenity distribution business. The indictment named two movies: Jay Sin's "Milk Nymphos" and Joey Silvera's "Storm Squirters" as well as Belladonna's movie trailer for "Fetish Fanatic 5" in the indictment. Not only were the charges brought against him, but against his business John Stagliano Inc. and Evil Angel Productions.
This was a case assaulting First Amendment rights and freedom of speech on the Internet. The "problem" as the prosecutors saw it was that the films were available on the Internet, and were available in areas where such material is considered obscene. So, one of the big questions was how do you define the "Internet community" since the Miller standard for obscenity (based on the 1973 Miller v. California case) requires that community standards be used to define what is obscene.
If you want more details, follow the link below. The article is an excellent summary of the case, and why it mattered so much.
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