Private contends in the suit filed in August that XonDemand streamed content for more than three years after a 50 percent revenue-sharing contract was terminated in 2007 between the two companies.
The Barcelona-based company said it discovered in May that XonDemand was "committing over 30 separate instances of copyright infringement and over 1,000 separate and distinct instances of trademark infringement" by continuing to rent Private videos by the minute or flat rate.
XonDemand, which is represented by attorney Clyde DeWitt, had been seeking to have the case thrown out. XonDemand contends it never received a termination letter, all the while paying commissions to Private, and that it removed content "immediately after someone at XonDemand learned of this lawsuit."
Spokesman Jason Tucker told XBIZ that Private is pleased with the judge's denial to dismiss the case. The case was filed at U.S. District Court in Los Angeles.
"We're not surprised by the outcome," Tucker said. "It's our hope that XonDemand will take the judge's notice that the company should settle the case."
DeWitt told XBIZ that the judge ruled only that the agreement did not foreclose claims for copyright and trademark infringement
"Whether the agreement limits the damages to a few hundred dollars remains an open question," he said.
