Netflix Sued for $105M Over Stolen Nicolas Cage Film
Is compensation necessary or were industry standards breached?
Above: The Netflix logo is displayed at a company office in Los Angeles, Calif., on May 12. Image credit: Justin Sullivan/Getty Images
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.
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.