In late 1983, investigators for Laguna Pacific, the holder of copyrights to several adult gay motion pictures, including all the films of director William Higgins (real name: George Fisher), learned that David Carter (real name: David Beckmann), through a mail-order firm he had set up called Malibu Video, was selling counterfeit copies of Laguna Pacific's copyrighted films at prices far lower than those charged by Laguna Pacific. In December 1983, Laguna Pacific filed a lawsuit in US District Court for the Central District of California, in Los Angeles, against Carter for violation of copyright, unfair competition, trade libel, and racketeering. In January 1984, Carter agreed to a preliminary injunction enjoining him from continued sales of Laguna Pacific films pending the outcome of the trial; a month later, Laguna Pacific agreed to permit Carter to recommence sales of authentic copies of Laguna Pacific films. However, in May and July 1984, Laguna Pacific discovered that Carter had continued to ship counterfeit Laguna Pacific tapes, and had established a new business, Universal Video, which continued the practices of Malibu Video. In September 1984, the judge hearing the case found Carter in contempt of the injunction of January 1984, and in February 1985, ordered him to pay Laguna Pacific $103,112.19 damages, $17,062.23 in attorneys fees, and $2,687.50 costs. The outcome of the case is not apparent from the records on hand, the last of which are a series of depositions by David Carter in September 1985.