May 30, 2012 6:50pm PT by Matthew Belloni
Netflix, Relativity Sued Over 'Atlas Shrugged' Distribution Deal
Netflix and Relativity Media have been sued by the production company behind Atlas Shrugged: Part 1, which claims the distributors failed to pay a $1.5 million license fee to release the film on home video.
In a lawsuit filed Wednesday in Los Angeles Superior Court and obtained by The Hollywood Reporter, Atlas Productions says it has satisfied all the conditions of a written agreement with Netflix, Relativity and an entitly called RML Acquisitions, but its demands for payment have gone unheeded. The suit also accused Netflix of copyright infringement of the 2011 adaptation of the 1957 novel by Ayn Rand.
The suit, filed by John Jahrmarkt of Jahrmarkt & Associates, claims causes of action for breach of contract, account stated, open bok account, unjust enrichment, fraudulent misrepresentation and copyright infringement.
Relativity declined to comment on the suit. Netflix did not immediately respond to a request for comment.