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

Utah 'Porn Tax' Bill With VPN Provisions Passes State Senate

The Utah state Senate has passed a bill that would impose a 2% tax on the revenues of adult websites doing business in that state, and make sites liable if Utah minors use VPNs to circumvent geolocation.

Fast-Tracked Arizona Bill Includes Consent 'Catch-22' for Adult Sites

A bill advancing rapidly through the Arizona state legislature would impose new requirements for adult content uploaded online, including seemingly contradictory provisions that could effectively make it impossible for adult sites to operate in the state.

VirtualRealPorn Launches New WebXR Site

VirtualRealPorn has officially launched its new site, powered by Web Extended Reality (WebXR).

'MyAsianGFs' Launches Through Paysite.com

MyAsianGFs.com has officially launched through Paysite.com.

Corey Silverstein to Host Webinar on North Carolina Age Verification Thursday

Adult industry attorney Corey D. Silverstein has announced his latest "Legal Impact" webinar, titled "North Carolina AV Law — Content Creation Issues," to livestream Thursday at 4 p.m. (EST).

Ofcom Fines 8579 LLC $1.8 Million for AV Noncompliance

U.K. media regulator Ofcom on Monday imposed a fine of 1.35 million pounds (more than $1.8 million) against adult site operator 8579 LLC for failing to implement age checks as required for compliance with the Online Safety Act.

Pearl Industry Network Launches 'TrustLink' Creator Verification Platform

Trade group Pearl Industry Network (PiN) has launched TrustLink, its free creator verification platform.

UPDATED: Supreme Court Rejects Tariffs, Trump Responds

The U.S. Supreme Court on Friday ruled against the Trump administration’s sweeping tariffs, which have significantly impacted the pleasure industry, prompting the president to announce a new tariff strategy as a workaround.

FSC Updates Complaint in Tennessee AV Case, AG Motions to Dismiss

The Free Speech Coalition this week filed an amended complaint in its lawsuit challenging the Protect Tennessee Minors Act as unconstitutional, in response to which the Tennessee attorney general motioned for dismissal of the case.

Cherie DeVille Joins Woodhull Freedom Foundation 'Free Speech' Panel

Multi-XMAs winner Cherie DeVille will join the upcoming Woodhull Freedom Foundation panel series "Fact Checked by Woodhull," addressing free speech on Feb. 26.

Show More