The suit, which seeks damages and a restraining order, says the two companies entered into a deal in March 2006 where Private would be paid 50 percent of gross revenue from XonDemand, which rents adult videos by the minute or flat rate.
But Private said that in March 2007 the deal was terminated, with a 30-day written notice given and received by XonDemand company executives.
Private officials discovered in May that XonDemand was "committing over 30 separate instances of copyright infringement and over 1,000 separate and distinct instances of trademark infringment."
In the suit filed at U.S. District Court in Los Angeles, Private, through its Fraserside Holdings division, seeks actual and statutory damages, a court order for temporary and injunctive relief, impoundment of all infringing copies and a full accounting of XonDemand's revenue obtained from Private content.
Company officials at both Private and XonDemand did not immediately respond to XBIZ for comment.