RAPID CITY, SD – National American University has dropped the intellectual-property lawsuit it filed in May against adult content producer La Touraine Inc.La Touraine, based in San Diego, Calif., is the parent company of Naughty America.

The university is a privately owned institution offering both online degrees and in-person instruction at 16 campuses in seven states. The university’s parent company, Dlorah Inc., filed the federal suit alleging trademark violation and cybersquatting. The company plans a $162 million merger with Baltimore-based Camden Learning Corp. in November. The resulting entity will be named NAU Holdings Inc.

And that’s where the trouble arose.

According to documents filed with the court, in 2003 La Touraine began promoting a website called “Naughty American University,” or NAU for short. In 2004, La Touraine launched a sexually explicit college-themed website, Fast Times at NAU. Dlorah alleged the abbreviation and name of the fictitious school engendered confusion and generated ill will among the public.

In the months since the lawsuit was filed, La Touraine has eschewed college themes on both sites. Naughty American University continues to offer explicit content; Fast Times is undergoing remodeling.

On Monday, the parties filed a joint motion to dismiss the lawsuit, indicating a settlement has been reached. Sam Kerr, general counsel for National American University, told the San Francisco Chronicle that La Touraine will stop using the abbreviation “NAU” to promote its products, as the initials compose a trademark owned by Dlorah. Other details of the settlement were unavailable at press time, although the dismissal motion indicates each side will pay its own attorney fees and court costs. Originally, Dlorah had asked for financial damages.