Entertainment

Netflix Sued for $105M Over Stolen Nicolas Cage Film

Is compensation necessary or were industry standards breached?

Published JUL 31

Netflix Sued for $105M Over Stolen Nicolas Cage Film

Story

Above: The Netflix logo is displayed at a company office in Los Angeles, Calif., on May 12. Image credit: Justin Sullivan/Getty Images

The Facts

Netflix is being sued for $105 million after a copy of an unreleased movie titled "Fortitude" starring Nicolas Cage was stolen from the streaming service's Los Angeles offices.
The Guardian
The Independent
According to the 16-page suit filed in a federal court in California by representatives of writer-producer Simon Afram and his production company Op Fortitude on Wednesday, the plaintiffs hand delivered an unencrypted master copy of the film — known as a Digital Cinema Package (DCP) — to Netflix's Hollywood offices on June 15.
Court Listener
The Independent
Page Six
It goes on to allege that while plaintiffs instructed Netflix to delete additional copies and to make arrangements to return a hard drive containing the DCP after a June 16 screening, they did not hear back until June 25. It said they received an email stating, "someone stole a good amount of drives from our office desks this past week."
Court Listener
The Independent
Page Six
The suit adds that Afram invested seven years and $45 million on the making of the film, a World War II spy thriller based on a real story, and that by losing control of it, Netflix allegedly destroyed its exlusivity and marketability.
Court Listener
The Independent
The Hollywood Reporter
It states that the $105 million figure was derived from Afram's $45 million investment, lost commercial sales opportunities and potential lost profits.
Court Listener
In a statement from the streaming service, a spokesperson said: "Netflix disputes any claim that it bears the risk of loss for a film delivered without the proper industry-standard safeguards. While we do not own the rights to Fortitude, we take content security seriously and have taken extra measures to support the filmmaker and his team."
Page Six
The Hollywood Reporter

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

After Netflix failed in its duty of care to the film, it's not fathomable that a sophisticated investor would spend tens of millions to acquire it, then tens of millions more to market it, given that there's a constant risk that it could appear online to be viewed widely for free at any time. That's why damages are the only appropriate remedy in this situation.

Court Listener

Narrative B

Netflix does not accept that it bears the responsibility for the film as it was unencrypted, contrary to industry-wide safeguards in place. While it took efforts to support the filmmaker and his team, his lawyers immediately tried to extort Netflix for $165 million.

The Hollywood Reporter