NBC and News Corp internet venture runs into trouble

Lulu claims that Hulu "unfairly trade[s] upon the goodwill that Lulu has established" and that the "defendants' use of a closely similar name and mark to promote closely related services creates a likelihood of confusion".

Bob Young, Lulu chief executive, said that the company had invested millions of dollars in building up the firm and its brand over the past five years.

He said: "It is clear we are required to move quickly to protect our intellectual property and defend ourselves against this infringement before it significantly damages our business."

The Lulu site first allowed authors to self-publish their own books but it has since expanded to introduce photos and videos.

News Corp and NBC announced their joint venture back in March, but only revealed the name of their YouTube rival late last month.

Jason Kilar, chief executive of Hulu, said the name Hulu had been chosen because it is "short, easy to spell, easy to pronounce, and rhymes with itself".

The two media giants plan to make thousands of hours of programming, movies and clips available from the extensive back catalogue of TV shows and films that the two companies own, which include 'Heroes', 'Battlestar Galactica', '24' and 'The Simpsons', as well as 'Borat' and 'Little Miss Sunshine'.