Key facts
- A U.K. production company and filmmaker are suing Netflix for $105 million.
- The lawsuit alleges Netflix lost a hard drive containing an unreleased Nicolas Cage movie, 'Fortitude'.
- The film reportedly cost $45 million to make and took over seven years to produce.
- Plaintiffs claim the loss of exclusivity has materially impaired the film's marketability.
- Netflix argues it is not liable due to the drive lacking encryption and proper safeguards.
A U.K.-based production company, Op-Fortitude Ltd., and filmmaker Simon Afram are suing Netflix for $105 million, alleging the streaming giant lost a hard drive containing an unreleased espionage movie starring Nicolas Cage, which they claim has severely damaged its commercial prospects.
The lawsuit, filed in California, states that associate producer Daniel Haido hand-delivered an unencrypted master copy of the film, titled 'Fortitude,' to Netflix for a potential buyer screening. Haido reportedly instructed the Netflix employee to delete the files after the viewing. Over a week later, Netflix informed the filmmakers that the drive had been stolen from their Los Angeles office.
The plaintiffs argue that the film's value depended on its exclusivity as an unreleased work. They contend that by losing control of the film, Netflix destroyed this exclusivity and impaired its marketability, making it difficult to secure distribution deals due to the risk of piracy.
Netflix disputes the claim, stating it does not bear the risk of loss for a film delivered without proper industry-standard safeguards, such as encryption or password-protected links. The company has offered to monitor piracy sites for unauthorized distribution and stated it took extra measures to support the filmmaker.