The movie went on sale for approximately US$ 40 on the website Scandal-Inc.
Titled She's No Angel: Cameron Diaz, the 30-minute video was shot in 1992 and features the then 19-year-old Diaz baring her breasts and getting kinky in a softcore photo session for cameraman John Rutter.
Diaz had tried to block the footage shot by Rutter, claiming that he forged her signature on the release form and was demanding over US$ 3 mn to give her the original footage.
Scandal-Inc said that it bought the rights to the footage sometime last year.
Diaz's camp claimed that a Los Angeles judge issued permanent injunction last November that prohibiting the dissemination of the video and that Rutter would face criminal charges.
Rutter is due to stand trial July 21 for attempted grand theft, forgery and perjury - all charges relating to his battle with Diaz over the photos and video.
He has filed a US$ 10 mn lawsuit against Diaz, claiming fraud and breach of contract.
