Netflix Loses Appeal In Exec Poaching Legal Battle With Fox

Netflix Loses Appeal In Exec Poaching Legal Battle With Fox

20Th Century Fox Film, Marcos Waltenberg

12/3/2021 5:00:00 AM

Netflix Loses Appeal In Exec Poaching Legal Battle With Fox

A judge today shut down Netflix ’s appeal in a long-running legal battle centered on the streamer poaching executives from Twentieth Century Fox Film Corporation. Netflix had claimed, in part,…

’s appeal in a long-running legal battle centered on the streamer poaching executives from Twentieth Century Fox Film Corporation. Netflix had claimed, in part, that Fox’s contracts were void because they violate California’s famed seven-year rule and severely restrict employee mobility. It had also claimed that Fox must show resulting harm.

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But today, a three justice panel led by Judge Dorothy Kim rejected the Netflix appeal, writing in part:Netflix’s assertions about the legal validity of the injunction are belied by the terms of that decree. The injunction does not restrain Fox employees from leaving Fox at any time, even during the fixed term of their agreement, subject only to a potential claim for breach of contract. By its express terms, the injunction restrains only Netflix; it proscribes only solicitation or inducement during the fixed term of an employee’s agreement. Netflix thus remains free to solicit lawfully Fox’s at-will employees and to hire Fox fixed-term employees at the end of their contract term. Netflix can also hire Fox employees during the fixed term, if the employee initiates the contact with the company without inducement or other act of interference by Netflix. Thus, contrary to Netflix’s characterization, the injunction does not directly or indirectly decree specific performance of any fixed-term personal services agreement with Fox.

Read more: Deadline Hollywood »

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