A Chinese online movie firm has sued five Hollywood studios and the Motion Picture Association of America, alleging that false accusations of piracy have harmed its reputation.

The MPAA and studios including Disney, Universal and Columbia filed suit against Jeboo.com in China late last year, accusing the company of distributing their movies illegally. The MPAA announced an out-of-court settlement of the case on 6 March.

"Services like Jeboo have profited from copyright infringement and undermined the development of legitimate online services," said Frank Rittman, an MPAA vice president and the organisation's Asia-Pacific regional counsel.

However, Jeboo yesterday announced to local media that it plans to sue the MPAA and the studios, claiming that statements like these are untrue and have damaged its reputation.

In the original case, Jeboo was accused of pirating Pirates of the Caribbean 2: Dead Man's Chest, as well as 20 other popular films.

Users of two internet cafes in Shanghai were observed downloading or watching the movies, according to the MPAA.

Jeboo claims that it never accepted liability in the case, and that it settled in order to get it over with as quickly as possible.

The pirated movies in question did not in fact originate with Jeboo, the company claims.

Internet cafes pay Jeboo a monthly fee for the installation of a Lan-based film distribution system. Jeboo updates the content every day and provides customer service support.

Visitors to the cafe can either watch or download the movies. According to the MPAA, users generally cannot access the Jeboo Bar from their own computers.