Porn Valley- Ostensibly competitors, Kevin Blatt didn’t sound like he was too broken up by the death of celebrity porn tape broker David Hans Schmidt last week. Schmidt, who was accused of trying to extort money from Tom Cruise, apparently committed suicide.

I spoke to Blatt just as he got back from San Francisco. Blatt’s taking a job with Game Link, having left Pure Vanilla. Blatt claims Pure Vanilla owes him $6500 but doubts he’ll ever see it.

“They’re going out of business,” says Blatt. “That’s why I kind of left- I didn’t see any positive signs.”

Blatt also attended the recent industry anti-piracy meeting and came away with a few thoughts.

“That’s the first time a lot of people in the adult industry – producer wise- got to see how big of an epidemic this is,” he says.

“It was the first time that a lot of people- who are primary content producers- got to hear from Internet people just how big of an epidemic this is and how much their business is going to change in the next year. It’s come down to this: if these studios haven’t prepared anything for the web, they’re in trouble. It’s a very unique situation we find ourselves in these days.”

Blatt tell me he’s been writing a book titled The Accidental Pornographer.

“I know that my book is going to be my swan song,” he laughs. “I know that’s where I’m going to make my money but how do you find time to sit down and punch out chapter after chapter when you have to pay the bills?”

On the subject of Schmidt, Blatt says, “I’m going to assume it’s pretty hot wherever he is.”

“That whole story was very strange and I was on the inside of it becaue my contact over at TMZ was calling me. He said, ‘you’re not going to believe this, but David Hans Schmidt was calling me every single day, leaving me crazy voicemail messages to the point where I’d listen to the first three seconds and would hang up.’

“He thought David Hans Schmidt was giving him the ultimate story that he was going to kill himself,” Blatt continues, noting that another journalist named George Malloy has THE story on Schmidt.

“But now the attoney for David Hans Schmidt is saying he’s got visible evidence to state that Schmidt didn’t hang himself. But he wants $5,000 for his story. I think he’s trying to pin this on the Scientologists which is pretty funny.”

Blatt said the minute he read the story that Schmidt was dead, he ran out and bought a Dianetics book.

“I’m ready to join the church- I’m scared of those people, man,” laughs Blatt who knew Schmidt moderately well.

“When the Colin Farrell-thing [the sex tape] initially happened, I met with two thugs at Mel’s Drive-In on Sunset- this is stuff that’s going to be in my book. These two thugs were third party reps for Nicole Narain, the black Playmate in the video. At that time they said we’d like to get $1.2M for this and we know we can get it. So if you can get it to us within 24-48 hours, we’ll go with you. If not we’ve got another guy shopping it [Schmidt].”

But the thugs wouldn’t tell Blatt it was Schmidt.

“I said would you give me exclusivity if I get you more money right now? They said most likely not.”

Blatt left the meeting and later found out who these guys were.

“I did enough questions and enough poking and prodding that I got a call from David Hans Schmist,” says Blatt. “And he was crazy- ‘who do you think you are? I’m the celebrity sex tape king!’ He’s going down this whole B-list of people.

“I’m going, whoa- I don’t know who the hell you are or why you’re calling me. He goes, that Colin Farrell tape’s mine, motherfucker, and you better step off or I’m going to have to break your leg. He goes I don’t need no hotshot Jew down in San Diego stealing my thunder. After he threatened me with bodily injury, I hung up the phone and I realized at that point there’s no way in hell I’m getting the deal.”

“I did my research on Schmidt to find this guy’s a lunatic, he’s a publicity whore and he’s going to do whatever he can to get the deal. And I don’t know if I want to be involved with this, especially because there were no releases. That was the number one thing I kept asking- are their releases? Is it legal? There’s a whole shtick I go through with these people.”

Blatt figured even if he wasn’t going to get the deal there might be some light at the end of the tunnel and make some money on it. He looked up online who Farrell’s agent was, called him and introduced himself.

“I said my name’s Kevin Blatt- Google me, you’ll see I am who I say I am. But your client’s got a situation that’s going to happen, and it’s not going to be pretty. I said I might be able to help him. Then I told his assistant what it involved. He thought I was kidding. I just go Google my name and call me back. Ten minutes later I get a conference call, and it’s all the Hollywood bigwig attorneys, agents and Colin Farrell on a conference call. They’re all saying what do we do? I said do you remember doing this movie caled Daredevil? You were in LA at a certain time and they go, fuck.”

Blatt went on to tell them about his conversation with Schmidt who threatened to kill him.

“I’m not normally a rat but in this case I smelled opportunity,” says Blatt. “They came back to me and said would you want to consult for us and help us get this thing out of these peoples’ hands? I said, well, I don’t have time to consult, but I’ll see what I can do.”

“From that point on all they needed was a name and went after Schmidt big time. I had no idea that Schmidt was wrapped up with this Internet company [Male Celebrities.com], though, that got involved in the whole litigation.”

“Schmidt was the guy who brought everything to them, exclusively.”

Ordinarily, Blatt said he doesn’t like to turn on anyone, but saw that Schmidt was “a rogue-villain” who was threatening to kill him. Blatt ended up getting a nice little “thank-you” from Farrell’s people and moved on.

“Then six months go by and that Paris Hilton storage locker story broke,” adds Blatt. “It turned out that Schmidt got his grubby hands on that deal, called me up and said, hey, man, I understand you might have investors. I did have investor. They wanted to open a casino with Paris Hilton’s name on it. I thought it would be a great way of getting their attention by buying her storage locker contents. So Schmidt wanted me to put a million dollars in escrow and wanted $10.2M for the contents of the locker.”

“Everybody scoffed at him- are you out of your mind? It’s not legal, you can’t sell it.”

Then Blatt turned it over to another person in the adult industry who was seriously interested in buying the contents.

“He had a couple of go-arounds with Schmidt, put some money in escrow, then Schmidt went to jail. He’d been in and out of jail for years. Crazy guy. One thing he did in addition to non-payment of child support, and alimony payments, is they got him for harassment. I guess he had a daughter or son that died, very young, and he used to go visit the grave. And he would leave threatening notes on the grave for the ex-wife, knowing that she would come there. The guy was nuts.”

“He used to call me and taunt me- he was just a dick.”