The proposal at San Francisco's AT&T Park on October 21 was being filmed for possible broadcast on E! Entertainment Television, home to Kim's hit show Keeping Up With the Kardashians.
The couple, who have a young child, are seeking unspecified damages from Mr Hurley and his company, Avos Systems Inc.
According to entertainment website TMZ, the lawsuit alleges: "Hurley proceeded to try to turn the event into one starring himself broadcasting the images he knew were the exclusive property rights of someone else", .
The lawsuit goes on: "Despite his extraordinary financial success in creating YouTube, which was sold in 2006, Hurley has ever since sought his 'second act'."
It also reportedly adds Mr Hurley was not invited to the event but was allowed to stay after signing a confidentiality agreement.

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