Lets not get too excited. It's terrible for Paul but various LEA's have had eyes on him forever. For everyone else trying to make a buck in the industry its just a matter of minimizing exposure to the bear trap that Paul's co. fell into (i.e. mail order + varying local laws in some states). One more reason for companies to divert some budget into their web-based content distribution, and away from their physical media distribution (which is dying anyway).

Let's also not be so quick to assume that california is in any hurry to stop taking delivery of hefty tax revenues from the multi-billion-dollar adult industry. In other words the sky is not falling.