LOS ANGELES, July 30 (Reuters) - A movie producer is seeking
$105 million in damages from Netflix ( NFLX ) after he says a
copy of his unreleased Nicolas Cage movie was stolen from the
streaming service's studios in Hollywood.
Attorneys for producer Simon Afram said in a lawsuit filed
on Wednesday in California that the filmmakers had delivered an
unencrypted master copy of the World War II drama "Fortitude" to
Netflix ( NFLX ) in June at the company's request. Afram invested more
than $45 million in the production, which took seven years to
complete, and he was in the process of trying to sell the movie
to Netflix ( NFLX ) or another distributor.
Nine days later, the plaintiffs were informed via a Netflix ( NFLX )
email that "someone stole a good amount of drives from our desks
this past week," including the one containing "Fortitude," the
lawsuit said.
The producers argue that the film's value has been
"destroyed" because distributors are unlikely to buy a film that
ould appear on piracy sites. They said Netflix ( NFLX ) should have
better secured the hard drive.
"It is not fathomable that a sophisticated buyer would
invest tens of millions of dollars to acquire the film - and
tens of millions more to market it - while facing the constant
risk that it could appear online to be viewed widely for free at
any time," the lawsuit said.
The lawsuit asks for at least $105 million in damages.
In a statement, Netflix ( NFLX ) said it "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," including investigating the
theft and monitoring piracy sites for unauthorized distribution
of the film, the company said.
Netflix ( NFLX ) also said it had declined to share information from
the investigation with Afram's attorneys "given their hostile
attempts to extort money from Netflix ( NFLX ) over this situation ...
rather than work with us in good faith."