Streaming services have completely disrupted the entertainment sector and transformed how we consume content. Among them, Netflix stands out not only for its innovation in streaming but also for its powerful intellectual property strategy. The Netflix intellectual property portfolio has become central to its success and brand protection.
Even though Netflix started as an ‘online movie rental-by-post company’ in 1997, it pivoted its business model later to grow into the streaming giant that we see today. However, the US-based company faces tough competition from other streaming services such as Amazon Prime, Hulu, and Disney+.
Netflix, however, gains a competitive advantage by securing its intellectual property through copyrights, patents and trademarks. Protecting intellectual property rights is critical for Netflix as it needs viewers across the world as its loyal customers. It also needs to protect its original content from infringement.
This article sheds light on how streaming platforms such as Netflix use different types of intellectual property to enhance brand identity and protect original content and technological innovations:
Netflix Business Model and Intellectual Property Evolution
Netflix began its business in the US as a video rental company. Its business model was based on renting DVDs through postal mail. Netflix had to battle the dominance of brick-and-mortar DVD rental stores like Blockbuster and Family Video in the late 90s. However, the company disrupted the industry with its unique subscription-based business model.
The company turned to streaming services in 2007, leveraging the rise of the Internet and cloud storage systems. At first, its operation was confined to the US, but Netflix expanded into more regions later.
How Netflix Uses Intellectual Property in Its Streaming Strategy
Netflix’s interest in intellectual property protection came at a later stage of its evolution. Initially, for streaming, the company relied on licensing movies, shows and other forms of content from well-known studios and production houses.
However, the need to protect its intellectual property assets became relevant as more streaming companies started offering competition to Netflix. More players entered the market such as Amazon Prime and Disney+. In 2013, they started making original content (Netflix Originals) with the popular show House of Cards. Making original content gave global streaming more control over its intellectual property.
Why Intellectual Property Matters for Streaming Platforms Like Netflix
Intellectual property is central to Netflix’s business model and long-term competitiveness. The Netflix intellectual property strategy covers a wide range of assets — from its original content to the technology powering its recommendations. The following forms of intellectual property are particularly crucial for Netflix and other streaming services:
- Copyrights
- Patents
- Trademarks
Netflix Copyrights
Netflix intellectual property protection heavily relies on copyrights, which are the most vital form of IP for streaming platforms. Whether licensing external content or producing Netflix Originals, copyright law underpins the company’s ability to control and monetize creative assets.
While licensing other parties’ content, Netflix enters into agreements with production houses or copyright owners.
When it produces original content, Netflix owns the copyright for it. Copyright allows Netflix to decide how and where to stream or distribute the content.
Netflix Patents
A core component of the Netflix intellectual property strategy is filing patents for its innovative technologies. From content personalization algorithms to interactive UI elements, these Netflix patents help defend its tech advantages against competitors.
Netflix’s affinity for filing patents can be traced back to its early origins when it patented an apparatus for renting items via computer.
It has also filed a patent application for the technology to ‘skip’ the content.
One of the unique aspects of Netflix is its ability to recommend content as per a user’s taste in movies or shows. This ability is achieved through a certain AI Algorithm and Netflix has patent rights over it. You can find the list of Netflix patents here: https://help.netflix.com/en/node/25888.
Netflix Trademarks
Netflix is also keen on protecting its brand assets with trademarks. Netflix has registered its logo and the wordmark ‘NETFLIX’. It has also trademarked figurative marks like “Netflix 3D” and Netflix Super HD”.
It has also trademarked the musical tone (TUDUM) that accompanies the Netflix logo whenever it appears on screen. Other Netflix trademarks are related to the merchandise it owns under the names of its shows such as Stranger Things, Bridgerton, The Queen’s Gambit etc.
What can you learn from the Netflix Story?
The Netflix success story is founded upon its unique business model, technological innovations and hefty investments in intellectual property spread across trademarks, patents and copyrights. Apart from the US, Netflix's intellectual property is protected in countries where it operates including the European Union.
Companies can take a leaf from the Netflix story and keep protecting their intangible assets as their business grows.
The Future of Netflix and Intellectual Property
The streaming industry is growing in tandem with the advancements in technology and creative sectors. The evolution of the industry may force the streaming giant to rely upon its intellectual property to retain its market dominance.
Netflix used to license content from third parties like Walt Disney. However, they pulled their content from Netflix later to launch their own streaming service called Disney+. It means Netflix needs to strike a good balance between licensed content and original content. Copyright becomes more pertinent here.
Moreover, the company is foraying into the gaming sector which warrants more reliance on intellectual property protection.
Be Like Netflix! Protect Intellectual Property
Netflix’s intellectual property should be an inspiration for all businesses out there. Netflix’s intellectual property strategy is spread across copyrights, patents and trademarks, based on its business model.
Other companies must look into Netflix's strategy, start creating a comprehensive intellectual property portfolio and implement robust measures to manage and protect it. Intellectual property companies like Abou Naja Intellectual Property can help you if you want to protect your innovations, brand assets and creative works of authorship.
Abou Naja Intellectual Property has a team of highly experienced intellectual property specialists who can offer the best advice to protect your intangible assets. All you need to do is drop an email at [email protected]. Our specialists will call you back for an insightful consultation on robust intellectual property protection.
