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

Hollywood Reporter Covers XBIZ Miami in Article on Premium Fan Platforms

The Hollywood Reporter extensively covers this year's XBIZ Miami conference in an article on premium fan platforms in the magazine's latest issue.

F2F, Image Angel Launch 'Forensic Watermarking' for Traceability

Friends2Follow (F2F) and Image Angel have partnered to launch a new traceability solution to combat unauthorized content sharing with the use of forensic watermarks.

EU Court: France Can Require Foreign Sites to Implement AV

The European Union’s Court of Justice ruled on Tuesday that France may require pornographic websites based in other EU states to implement age verification in accordance with French law, as long as France follows EU electronic commerce rules.

LoyalFans Announces 'Group Walkthrough' Online Event Series

LoyalFans has announced its new “Group Walkthrough” online event series for creators, taking place every Tuesday and Thursday.

Bree Sky Officially Launches 'ThirstChat' Fan Platform

Creator and entrepreneur Bree Sky has debuted her new fan platform, ThirstChat.

Lawsuit Alleging Meta Pirated VMG Content Will Move Forward

A U.S. district court on Thursday rejected Facebook parent company Meta’s motion to dismiss a suit by Vixen Media Group owner Strike 3 Holdings, which accuses Meta of pirating VMG content to train its artificial intelligence models.

Playboy Partners With Creator Platform Tango

Playboy has partnered with creator platform Tango, introducing Playmates to the livestreaming service.

Anti-Porn Senator Introduces Federal Age Verification Bill

U.S. Senator Jim Banks of Indiana, who last month urged the Department of Justice to ramp up obscenity prosecutions, on Wednesday introduced a bill that would make age verification by adult websites federal law.

AEBN Publishes Popular Searches by Country for April, May

AEBN has released the list of popular searches from its straight and gay theaters, by country, for April and May.

Ondato Joins Pineapple Support as Sponsor

Age and identity verification company Ondato has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Show More