In fact, he boasts, the pair are among the few tech-porn pioneers who have kept their ledgers in the black through the years. While others, including friends in the industry, were sued, prosecuted or bungled their way out of business, the pair stayed ahead of the game, says Blatt.

The two, both from California, met in their 20s in Seattle, Blatt says. They were business savvy. At least one of them had a good working knowledge of the telephone industry. They apparently didn't mind pornography, so they started making their fortune running phone-sex lines, Blatt says.

In the mid-1990s, they began operating an Internet porn business that prospered and led to a string of different sites. "Low overhead and high profit," Blatt says. All the owners have to do is buy videos and photographs from other people, put it on the Web sites and cash the checks.

Nowadays, Vadocz portrays himself as a playboy. One Web site lists him as the No. 7 "most eligible bachelor" among a list of other Web-porn operators because of his wealth, dimpled good looks and ability to date porn princesses.

"Roger lives the lifestyle," Blatt says. "He's got the most amazing wardrobe you've ever seen."

Blatt won't say much about Marchlewicz, except that he's a married-with-children kind of guy who doesn't like having his name in the papers. Records show he married his 31-year-old wife last year.

But when the pair announced that they would put the Hilton video on their site, they couldn't avoid the attention.

Blatt insists Vadocz and Marchlewicz have been "very cooperative" with Hilton and her family.

The Hilton family attorney in California, David Rudich, would agree only that the company owners had indeed "settled their differences with Paris Hilton" but wouldn't discuss the matter further. Hilton released a statement Monday saying she was "embarrassed and humiliated" that her intimate life would become public.

Marvad's Seattle attorney, Derek Newman, says the company has indeed destroyed its copies of the tape. "Marvad was duped," Newman said.

Meantime, back at the previously anonymous office on Eastlake, the folks at Marvad still are doing what they do best: publishing porn.

"Everybody loves to watch a car wreck, and this is a big car wreck," Blatt says cheerfully. "But we're the victims here, because we're out $50,000 and the public never got to see the tape.

"And frankly, I think this is the best thing that could have happened to Paris Hilton's career."