SK Intertainment Vice President of Marketing Derek Meklir denied any wrongdoing on the company’s part with respect to allegations made by XPays in the lawsuit.
“SK Intertainment has developed an uncompromised reputation for adhering to the strictest ethical standards and business practices,” Meklir said. “We have reviewed the complaint and find it to be without merit. We intend to defend our position vigorously and are confident that we will prevail.”
XPays claims to hold the right to enforce any aspect of the Hilton video that passes over a network connection — a deal the company penned when the tape featuring a sexual tryst between Hilton and then-boyfriend Rick Salomon first surfaced online.
Other defendants named in the suit include CelebrityCash parent company ICG Entertainment, CelebsUnzipped parent Tarasant, FreeCelebrityMovieArchive parent Adult Profit, PaparazziFilth.com parent Web Traffic Inc. and Verotel Merchant Services, the billing company for CelebsUnzipped.
XPays is seeking permanent injunctive relief and more than $1 million in damages.
According to court papers, the defendants allegedly took images and derivative works from the Hilton video and used them in tours and on their sites, resulting in the dilution of exclusive content and unfair competition. Additional charges include violations of the Latham Act, fraudulent business practices, false advertising and libel.
The term “Hotel Heiress” is trademarked by XPays, as well as all derivative works from the video and the box cover.