The dispute between Netflix and Fox is currently at the stage of a summary judgement. This dispute arose with regard to the terms of Fox’s employment contract, after Netflix had hired one of Fox’s executives. Following this, the streaming platform asked the Court to declare Fox’s employment contracts as void, on the grounds of it being illegal.

Netflix elaborated on its claim and stated that as per the terms of Fox’s employment agreement, employees are forced to continue working even if they want to leave and are prohibited from working elsewhere if they leave Fox before the end of their contract term. This essentially violates violation of the 13th Amendment to the U.S. Constitution. The Court initially sided with Fox, while deciding the where the balance lies between contractual obligations and complete economic freedom.

Fox defended its contract, by stating that locking in employees for a fixed period of time ensures them both professional and financial certainty. Netflix in its counter argument stated that Fox’s contracts contained terms that were actually non-compete in nature thereby violating California’s seven year rule according to which employment/ personal service contracts may only be enforced for seven years. Presently, the Court has set a date in November to hear further arguments and allow Netflix to amend its pleadings, before the trial which is scheduled for late January.