Studios Sue Google-Backed Chinese P2P Site Xunlei

The Motion Picture Association, which includes six movie studios, has filed copyright infringement suits in China against Shenzhen Xunlei Networking Technology, a popular P2P file sharing service. The suit alleges that its users are illegally downloading hundreds of movies despite repeated warnings. The group is seeking 7 million yuan ($1 million) in damages, and a public admission to the alleged copyright infringement and a pledge from Xunlei to refrain from future infringements, reports AP.

Here’s where it gets interesting: Xunlei is backed by Google (NSDQ: GOOG), who invested a reported $5 million in the service a year ago. Besides Google, the company previously had $20 million in venture backing from Morningside Ventures and IDG VC Partners.

From MPA’s release (PDF link): MPA sent 78 separate notices of infringement to Xunlei over a five week period before initiating the litigation.