Back in March, Universal Studios and Focus Features paid $5 million for the film rights to E.L. James's Fifty Shades of Grey; in June, L.A. Weekly's Barbie Davenporte detailed Smash Pictures' plans to beat Universal and Focus to the punch by producing their own porn adaptation of the S&M sleeper. Davenporte quotes Smash executive Stuart Wall as saying, "Since they are going to make a mainstream [film] of the books, too, dabbling in the adult world we're choosing to go with a XXX adaptation which will stay very true to the book and its S&M-themed romance."
Universal has decided that Smash's Fifty Shades of Grey: A XXX Adaptation (or This Isn't Fifty Shades of Grey - This is a XXX Parody, as per Smash's website) is too true indeed—the company is taking the makers of the x-rated Fifty Shades to court. In the plaintiffs' complaint, they write that "[b]y lifting exact dialogue, characters, events, story and style from the Fifty Shades trilogy, Smash Pictures ensured that the first XXX adaptation was, in fact, as close as possible to the original works."
James's Fifty Shades, of course, famously started out as Twilight fanfic.