Netflix sued for $105M US after copy of unreleased Nicolas Cage film stolen from L.A. office

Netflix sued for $105M US after copy of unreleased Nicolas Cage film stolen from L.A. office

Lawsuit faults streaming giant for losing a hard drive. Netflix blames lack of encryption

A U.K. production company and filmmaker are suing Netflix for $105 million US, after a copy of an unreleased Nicolas Cage movie was stolen from the streaming giant's Los Angeles offices.

The lawsuit frames the theft as a critical blow to the commerical prospects of Fortitude, a Second World War spy thriller from director Simon West (Con Air, The Expendables 2), in documents filed Wednesday in California federal court and obtained by CBC News.

The film is still seeking potential distributors, but the lawsuit claims the theft has made it harder to sell because it could be pirated online.

Writer-producer Simon Afram, named as a plaintiff alongside Op-Fortitude Ltd., has invested more than $45 million US in the project, according to court documents.

The plaintiffs say a hard drive with a master screening copy of the film was hand-delivered to Netflix on June 15. They say the drive was not encrypted and Netflix was told to both delete any copies of the film from its system and to inform them when the drive was ready to be picked up, after viewing.

After more than a week, they say Netflix informed them that drives, including the one that had a copy of Fortitude, had been stolen from desks in the office.

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Netflix said in an email it does not accept responsibility because the drive lacked "proper industry-standard safeguards."

It says unreleased titles are commonly provided either through password-protected links or in encrypted digital cinema packages (DCPs).

The film's producers "elected to share an unencrypted DCP," Netflix said, adding that once it learned the drive was missing, it notified internal security and the Fortitude team.

According to lawsuit, the filmmakers’ filings also contend Netflix did not provide key information about the investigation, including whether law enforcement was contacted.

Netflix says it declined to share details of the investigation with the law firm representing Afram, because of what it described as "hostile attempts to extort money."

Netflix says it took "extra measures" to help, including an offer to "monitor known piracy sites for any unauthorized distribution or sale."

In an email to CBC News sent on behalf of Afram by his legal counsel, he says: "We believe our partners deserve complete transparency and we are committed to providing you with the truth."

Christine Pagulayan is a Toronto-based producer and writer with CBC News, currently with the Entertainment unit. She has worked in various roles at CBC News Network and The National. She has also worked as a multiplatform reporter in Toronto, Winnipeg, Halifax and Moncton. You can reach her at christine.pagulayan@cbc.ca.