Disney Fails to Halt YouTube From Poaching Key Executive Ahead of Licensing Renewal Talks
Los Angeles Superior Court Judge James Chalfant on Wednesday concluded that Disney is unlikely to prevail on claims that YouTube illegally poached Connolly in violation of his contract with the entertainment giant.
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Last month, Disney filed a lawsuit faulting YouTube for Connolly's defection to YouTube to spearhead its media and sports division. It sought a temporary restraining order to prevent him from starting at the Google-owned company, claiming that he could leak confidential information or trade secrets belonging to Disney ahead of a licensing renewal with YouTube.
In a court filing, YouTube argued that the order Disney seeks for Connolly to return to the company against his will or quit his new position is prohibited under California law. It stressed that Disney knew for over six weeks that he intended to leave Disney to join YouTube, meaning there's no emergency for the court to issue a temporary restraining order. Connolly has been working for YouTube for roughly two weeks.
In discussions, Disney maintained that Connolly couldn't work for YouTube because he had a three-year fixed term contract that hadn't expired, according to a court document. It offered to release him from his contract following the renegotiation of their licensing deal.
'We are disappointed in today's ruling, but will continue to pursue our legal remedies,' said a Disney spokesperson in a statement.
YouTube declined to comment.
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