The power couple were given the go-ahead with the case on Tuesday because it does not violate the free speech rights of the co-founder of YouTube.
Kim and Kanye will face Chad Hurley in court on 17 November.
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The technical entrepreneur filmed the moment Kanye popped the question, later posting the two-and-a-half minute video on his video-sharing website MixBit.
Despite signing a confidentiality agreement, Chad claims that he wasn't informed of not being allowed to film or distribute the footage which Kanye did allow to be filmed by E! Entertainment. The network broadcasts the Kardashians' reality TV show Keeping Up With the Kardashians.
But Superior Court Judge Ruth Ann Kwan agreed that the key word 'CONFIDENTIALTY' could be read clearly on the document that he had signed.
YouTube co-founder Chad Hurley claims he was unaware of the confidentiality agreement
Kanye hired out the AT&T Park stadium in San Francisco, California to pop the question to Kim in front of her family and friends on her 33rd birthday.
He then presented the mother of his daughter North West with a 15-carat diamond ring by celebrity jeweller Lorraine Schwartz.
Jubilant celebrations naturally ensued, with guests and the newly-engaged couple toasting the joyous occasion – all of which was caught on camera.