Squid Game has taken the world by storm. It is now the most successful television series yet of Netflix, which has taken a number of steps to protect the trade mark globally.

A search of the World Intellectual Property Organisation’s (Wipo’s) global trade mark database reveals that Netflix has filed applications to register the trade mark in several countries worldwide in the last few weeks. The trade mark applications have been filed regarding a wide range of merchandise, including pen and pencil cases, luggage, handbags, mugs, bottle openers, swimwear and even balloons.

A trade mark is a form of intellectual property (IP) right that one trader uses to distinguish her or his goods or services from those of another trader. Registered trade marks grant their owners exclusive rights to use the trade marks regarding the goods or services concerning which they are registered.

With the exclusive right to use the trade mark regarding merchandise, Netflix will be able to sell themed merchandise worldwide, or alternatively license the right to third parties, who will themselves sell the themed merchandise.

Merchandising has been known to be a cash cow for films since the merchandising success of Star Wars in the 1970s. Star Wars is known to have made billions in revenue from toys and licensing income from third parties. In 2015 alone, the same year Star Wars: The Force Awakens was released, Star Wars toys generated sales of more than $700m, just in the US. Other films, including several Disney franchises such as Toy Story and Frozen, have found similar merchandising success. Toy Story generated more than $1bn in global box office sales but 10 times that in retail sales.

Another great example is Harry Potter, which after grossing more than $7bn in global box office sales, thanks to toys and scarves has a merchandise franchise estimated to be worth more than $20bn. And do not even get me started on the Marvel cinematic universe! It is evident that one’s ability to monetise the monopoly granted by an IP right has the potential to yield significant returns.

Netflix recognises that trade marks and other IP rights are business assets and should therefore be protected. But Netflix is not the only company that recognises this. According to Wipo, in 2019 alone more than 11.5-million trade mark applications were filed worldwide.

Yet, it is only when the monopoly granted by trade marks is monetised that these business assets become economic assets, and their real and tangible value is realised. Not all trade mark owners succeed in realising this value.

• Sikwane, a commercial lawyer specialising in IP, is a director of RNMS.