Netflix Recruiting Blocked -- WSJ
December 12 2019 - 3:02AM
Dow Jones News
Judge forbids hiring executives signed by Fox studios after
rivals claimed poaching
By Joe Flint
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (December 12, 2019).
A California judge issued an injunction against Netflix Inc.
prohibiting the streaming-video giant from trying to hire Fox
television and film executives who are under contract.
The ruling late Tuesday in Los Angeles Superior Court hands a
victory to Twentieth Century Fox Film Corp. and Fox 21 Inc., the
studios that sued Netflix in 2016 for allegedly poaching their
executives.
Walt Disney Co. this year acquired the Fox units as part of its
$71.3 billion purchase of 21st Century Fox entertainment
properties. At the time the lawsuit was filed against Netflix, 21st
Century Fox shared common ownership with Wall Street Journal parent
News Corp.
Big players in Hollywood are battling to sign up top talent --
from executives to TV-show and movie creators -- as competition
over streaming intensifies. Netflix in recent years has
aggressively recruited people with Hollywood experience, often
promising huge pay increases.
In its 2016 complaint, Fox said Netflix had orchestrated a
"brazen campaign to unlawfully target, recruit and poach valuable
Fox executives by illegally inducing them to break their employment
contracts with Fox to work at Netflix."
Netflix countered that Fox's contracts were "unlawful and
unenforceable" under California law because they "unreasonably
restrict employee mobility, stifle competition and artificially
suppress salary levels."
In his ruling Tuesday, Judge Marc D. Gross said Netflix doesn't
have the standing to challenge Fox's employment agreements and may
not solicit Fox employees who are under fixed-term agreements.
"The Court's ruling brings to an end years of unlawful poaching
by Netflix," said Daniel M. Petrocelli, an attorney who represented
Fox in the case. "The decision not only condemns Netflix's
deliberate violations of the law, but just as importantly,
reaffirms and protects the rights and choices of employees."
Netflix can appeal the ruling. In a statement, Netflix spokesman
Richard Siklos said the company "will continue to fight to make
sure that people who work in the entertainment industry have the
same rights as virtually every other Californian and can make their
own choices about where they work."
Write to Joe Flint at joe.flint@wsj.com
(END) Dow Jones Newswires
December 12, 2019 02:47 ET (07:47 GMT)
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