Nhentai Operator Countersues PCR Distributing for Fraud
X Separator LLC denies copyright infringement claims and seeks more than $500,000 in damages from the company that sued it.
Updated on Nov. 1, 2026 in Financial Crime
X Separator LLC, the Delaware company that operates Nhentai.net, filed a formal answer denying copyright infringement claims brought by PCR Distributing. The company also filed counterclaims alleging fraud and negligent misrepresentation, seeking over $500,000 in compensatory damages and punitive damages.
Why it matters
The countersuit alleges PCR Distributing misled the court to obtain a DMCA subpoena, shifting the dispute toward the conduct of the plaintiff. The case is pending in California federal court, where a judge has already denied Nhentai's motions to dismiss and for a protective order.
The case remains at the pleadings stage in a California federal court, where Judge Cynthia Valenzuela denied Nhentai's motion to dismiss and motion for a protective order in April. The merits of PCR Distributing's infringement claims and X Separator LLC's fraud counterclaims have not yet been decided.
The players
X Separator LLC
A Delaware company that owns and operates Nhentai.net, which denies the infringement claims and has filed counterclaims for fraud and negligent misrepresentation.
PCR Distributing
The plaintiff that sued Nhentai for alleged copyright infringement and is now facing counterclaims alleging it misled the court.
Cynthia Valenzuela
A California federal district court judge who denied Nhentai's motion to dismiss and motion for a protective order in April.
The details
PCR Distributing sued Nhentai for alleged copyright infringement in summer 2024 and later dropped its DMCA subpoena request to Cloudflare after Nhentai objected. X Separator LLC's countersuit argues that PCR Distributing's executives knew about permission emails sent between October 2020 and April 2022 yet misled the court, and that PCR actively sought promotions and advertisements with the site.
Timeline
October 29, 2020 through April 21, 2022: PCR sent emails granting permission for use of its works.
March 2023: PCR began registering its works at the Copyright Office.
Summer 2024: PCR sued Nhentai for copyright infringement.
January 2026: Nhentai asked the court to dismiss the lawsuit.
April 2026: The judge denied the dismissal and protective order motions.
Legal Context
The dispute centers on the DMCA subpoena mechanism under Section 512(h) of the Digital Millennium Copyright Act, which allows rights holders to compel service providers to identify alleged infringers. Here, the alleged infringer is challenging the plaintiff's conduct in obtaining that subpoena, rather than only contesting the infringement itself.
The case could affect how copyright holders use DMCA subpoenas against online platforms, which matters to anyone who hosts or relies on user-submitted content. Platform operators and site users may see changes in how disputes over takedowns and subpoenas are handled in court.
The takeaway
Copyright disputes increasingly turn on how rights holders obtain subpoenas as well as on the underlying infringement. Readers following similar cases should watch whether courts scrutinize the accuracy of the statements made to secure those subpoenas.
Further reading
Explore more financial crime coverage for the broader legal context around digital piracy and fraud claims.
More information
Read the X Separator LLC amended answer and counterclaims for the full filing details.
Source note: This article includes information reported by Torrentfreak.
