Lawsuit Settled Over U.S. Distribution Rights of 3D Penthouse Titles
BOULDER, Colo. — A settlement has been reached between LFP Inc.'s New Frontier Media division and FriendFinder Networks' Penthouse unit over the U.S. broadcast distribution rights of 3D Penthouse titles.
The settlement follows more than a year of litigation in a case that also included counterclaims.
Both parties agreed to a settlement this month that dismisses the suit and countersuit but does not reveal terms of the accord.
Last year, LFP picked up adult transactional TV service New Frontier Media and its Colorado Satellite Broadcasting (CSB) licensing unit for $33 million.
With the acquisition, LFP also inherited finger-pointing claims in Los Angeles federal court that Penthouse's moves caused confusion in the marketplace over the distribution of 3D movies.
In December 2011, prior to LFP's acquisition of the company, New Frontier Media sued FriendFinder Networks and several of its Penthouse divisions, alleging that it was purportedly terminated from a U.S. distribution deal despite complying with all of the terms of its 2007 contract.
CSB alleged in the suit that Penthouse attempted to roll out a U.S. version of a Penthouse 3D channel against terms of its contract and asked a federal court to declare that the licensing deal wasn't terminated and that it has the exclusive right to distribute 3D Penthouse titles.
Officials from FriendFinder and LFP did not immediately respond for XBIZ comment.