Megaupload, Perfect 10 Reach Settlement

SAN DIEGO — Perfect 10, file-sharing site Megaupload and operator Kim Schmitz have reached a settlement agreement in their copyright infringement suit.

Details of the settlement weren’t disclosed, but the settlement involved a joint request from the two companies to have U.S. District Judge Irma Gonzalez vacate a decision she made in the summer that sided with Perfect 10, CNET.com reported.

In that ruling, the judge advanced Perfect 10’s case by ruling that the file-storage site may be liable for direct and contributory infringement.

In Megaupload’s motion to dismiss, the judge upheld Perfect 10’s claims of direct and contributory infringement, but tossed the company’s vicarious and trademark claims.

According to the motion, Megaupload, which also operates sister sites Megarotic.com, Megaporn.com, Megavideo.com and Megaclick.com, argued that Perfect 10 had not alleged it engaged in volitional conduct sufficient to hold it liable for direct infringement and maintains it is merely a passive conduit.

“Megaupload serves as more than a passive conduit and more than a mere file-storage company,” Gonzalez wrote.

“It has created distinct websites, presumably in an effort to streamline users’ access to different types of media. It encourages and in some cases, pays its users to upload vast amounts of popular media through its Rewards Programs.”

Gonzalez agreed to the companies’ request.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Virginia Becomes Latest State to Weigh 'Porn Tax'

The Virginia House of Delegates is considering a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

Elizabeth Skylar Launches Production Banner on VRPorn.com

Elizabeth Skylar has launched her own virtual reality production banner on VRPorn.com.

CrakRevenue Introduces 'Trend Explorer' Feature for Affiliates

CrakRevenue has debuted the new Trend Explorer feature for its affiliates.

Tube Sites Submitter Introduces 'AI Video Description Generator' Feature

Tube Sites Submitter has introduced its new AI Video Description Generator feature for its platform.

Pineapple Support Releases End of Year Review for 2025

Pineapple Support has released its End of Year Review for 2025, detailing the organization's achievements, challenges, and new initiatives.

XBIZ Miami 2026 Lets the Good Times Roll at New South Beach Venue

Pack your favorite shades and sexiest poolside looks, because XBIZ Miami is splashing into a new hotspot — the chic Goodtime Hotel in the heart of Miami Beach — May 11–14.

UPDATED: Arcom Threatens to Block, Delist 2 Adult Sites Over AV Violation

French media regulator Arcom has sent enforcement notices to the operators of two adult websites that the agency says have failed to implement age verification as required under France’s Security and Regulation of the Digital Space (SREN) law.

Final Defendant Sentenced in GirlsDoPorn Case

Former adult producer Doug Wiederhold, previously a business partner of GirlsDoPorn owner Michael Pratt, was sentenced on Friday in federal court to four years in prison for conspiracy to commit sex trafficking.

FTC Takes Another Step Toward New 'Click to Cancel' Rule

The Federal Trade Commission (FTC) is negotiating the latest procedural hurdle in its effort to renew rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

Show More