As we previously reported, Kanye West and Kim Kardashian were looking to sue the man who leaked footage of their engagement proposal-- it turned out to be YouTube co-founder Chad Hurley. Now a lawsuit has been filed by the couple.

The lawsuit, which was obtained by TMZ, states that Hurley schemed to post the footage on his new video venture, MixBit, thus giving it a lot of free promo. Kanye and Kim say in the suit that Hurley was desperate to find a "second act" after the two ventures following YouTube flopped (he sold YouTube to Google for $1.65 billion.) They also say that Hurley wasn't even invited to the extravaganza at San Francisco's AT&T arena, however, he manipulated his way in.

Eventually the power couple decided to let Hurley stay, only after he signed a confidentiality agreement-- which they even got him to pose with, the image of which was attached to the lawsuit.

The lawsuit reads, "Hurley proceeded to try to turn the event into one starring himself, broadcasting the images he knew were the exclusive property rights of someone else." They go on to say that after Hurley tweeted out the MixBit engagement video to his followers (which are almost at a million), he even sent out a press release along with the video.

Kim and Kanye are suing him for unspecified damaged, including punitives. While they do not state how much the footage is worth, it was meant for the Kardashian reality TV show "Keeping Up With The Kardashians." 

[Update: Co-Founder Responds]

Kanye West sued YouTube co-founder Chad Hurley in late October, claiming he was attempting to capitalize on his engagement to Kim Kardashian. Hurley was present when 'Ye proposed to Kardashian at San Francisco's AT&T arena, and posted a video of the moment shortly after it took place.  

Now, as reported by TMZ, it seems Hurley is clapping back, claiming that "no one ever told [him] he wasn't allowed to shoot or distribute the footage." He also claims he was misled into signing a confidentiality agreement presented as a television special permissions form. 

"He shouldn't be legally bound by the waiver because he was misled into signing it," the site creator claims. "He got no compensation in return for signing away his rights." Not only is Hurley asking the judge to dismiss the case, he's also requesting that Yeezus pay all his legal fees...

The initial lawsuit against Hurley's company, Avos Systems Inc., states that "exclusive rights, such as those sold by plaintiffs to publication of video of the event, are particularly valuable. If people violate these rights... they are of substantially diminished value." The exact amount Kim and Kanye are seeking in damages is unknown.

That's all for now.