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The Austin Powers actor filed a $20 million lawsuit against TMZ to a Los Angeles court yesterday.
Troyer accused the site of infringing "on his copyright and trademark by running portions" of the video.
According to TMZ, the Hollywood star has also alleged that they violated "his right to publicity and misappropriated his name and likeness".
The footage, which surfaced earlier this week, features Troyer with a former girlfriend in his apartment.
Kevin Blatt, who helped promote Paris Hilton's infamous sex tape, is rumoured to be involved in the video leak.
