A federal appellate court has ruled against an adult entertainment company that sold streaming video (pdf) from a Miami home where gay male models lived, finding the residence constituted a business and violated a city zoning ordinance.

But the case may not be lost for Miami-based Flava Works, operator of Cocodorm.com. The 11th U.S. Circuit Court of Appeals sent the case back to U.S. District Court Judge Marcia Cooke to consider constitutional claims.

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