According to the complaint in WeR1's lawsuit against CyberLynk of Franklin, Wisc., a former CyberLync employee gained access to CyberLync's systems and deleted a whole season of "Zodiac Island" consisting of about 6,500 files or 300Gbytes of data. As is common in animation today, WeR1 used an FTP server at CyberLync as a drop box to coordinate work among animators, editors and other creative types in several countries.
CyberLync was supposed to back up the FTP server but was unable to recover the data. To make things just a bit ironic, in addition to web and FTP hosting, CyberLync also sells online backup services and advertises backup consulting services on its website.
Even if WeR1 wins its suit, CyberLync might not be able to pay the true value of the 14 episodes in question. Cloud storage can be a great idea, especially for the collaboration case like WeR1's, but leaving your company's primary asset exclusively in the hands of a third party is too much for me.
The part I find most amazing about this story isn't that WeR1 didn't make its own backup copy of the raw footage and other components of the "Zodiac Island" shows, but that it never saved the final versions. After all, at some point, the episodes are ready to send out to the more than 100 TV stations that broadcast the syndicated show.