At first glance, you wouldn’t believe Netflix (formerly known as a distributor) would be a competitor of 20th Century Fox (known as a producer). If anything, they should be doing business with one another. But times change, and in this situation, the transforming entertainment industry pits Netflix (now alleged to be “an internet-based television and film producer”) against Fox (still a traditional TV and film producer). The dispute? Employee mobility and whether Netflix has violated the law by recruiting and hiring Fox employees who are alleged to have been under fixed-term employment contracts with Fox. Fox contends that Netflix intentionally interfered with these fixed-term contracts and should pay damages and be enjoined from further interfering with Fox’s fixed-term contracts. According to Variety:

Netflix vowed to fight the lawsuit “vigorously.”

“We do not believe Fox’s use of fixed term employment contracts in this manner are enforceable,” a Netflix spokesman said. “We believe in employee mobility and will fight for the right to hire great colleagues no matter where they work.”

Stay tuned…