Netflix could be forced to pay out millions after K-Pop Demon Hunters trademark blunder
Netflix could be in serious trouble after a Christian metal band recently launched a trademark lawsuit, with KPop Demon Hunters – one of the streaming service's most popular productions – at the heart of the claim.
The film and its music have been inescapable for many since its release last year – especially if you have younger children – with it remaining one of Netflix's most-watched properties ever since.
It's most popular song, Golden, quickly climbed the charts and the film is even getting a physical Blu Ray release with the much-lauded Criterion Collection later this year — yet that all could be under jeopardy thanks to a bombshell legal challenge.
As reported by The Wrap, a Christian metal band by the name of 'Demon Hunter' has accused Netflix of trademark infringement and unfair competition, with the filing suggesting that the streaming service and entertainment company AEG Presents are "jealously guard[ing] and enforc[ing] their own intellectual property rights," and "willfully disregarding the rights of others in pursuit of profits."
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Whether this is a strong enough case to emerge victorious in court remains to be seen – especially as the plaintiffs have called for a jury trial – but if the legal challenge is successful it could end up being a major financial blunder from Netflix that'll cost them a lot of money.
How much could this cost Netflix?
While no explicit figures have yet been outlined in the case brought forward by Demon Hunter, the band has indicated the types of compensation it is looking to gain from a successful result.
The lawsuit filing indicates that the band has "been damaged in an amount not yet ascertainable," yet seeks treble damages, exemplary damages, injunctive relief, profits earned by Netflix, and attorney fees.
Treble damages, as the name suggests, would see the court multiply the actual financial loss incurred by the plaintiffs by three — and with a world tour on the horizon for the band, that figure could potentially be astronomical.
The court could also punish Netflix with high exemplary damages considering its dominant position within the entertainment industry, setting an example, especially if it is agreed that the streaming giant was 'almost certainly aware' of Demon Hunter.
Compensation for the attorney fees could also be major for a lawsuit as big as this – especially considering Netflix seems keen to fight its own position – yet it also depends on the strength of the legal team that Demon Hunter is able to secure based on its own position.
Finally, yet undoubtedly most punishing, is the acquisition of profits and any injunctive relief that is placed upon Netflix in regards to what has become one of the platform's most valuable intellectual properties.
It's difficult to know from the outside exactly how much KPop Demon Hunters has made profit-wise as it only had a limited release with earnings through Netflix traffic being unclear, yet there's no doubt that the film's popularity – alongside its commercial dominance beyond the platform itself – would result in tens, if not hundreds of millions of profits.
Combining this with an injunction that would prevent Netflix from promoting the film or any associated properties any further, and it wouldn't just cost millions now, but prevent more money from being earned in the future.
Has Netflix responded to the allegations?
In a bid to show its willingness to fight, Netflix has issued an official statement, with a spokesperson outlining to The Wrap:
"These allegations are without merit. Netflix has created an Academy Award-winning global phenomenon with ‘KPop Demon Hunters’ that has inspired fans around the world with its powerful music, storytelling and characters. We look forward to vigorously defending this matter.”
There's no doubt that the streaming service is willing to stick it out in court with significant financial might as its backing, yet it's more unclear whether the band can match this and sustain the pressure that will ultimately be placed upon them, even with the potential for millions of dollars in compensation in their sights.