With the highly anticipated release of Squid Game season 3 last week, Netflix once again dives into the unique story that has captivated much of the world for the past several years. As fans watch the newest trailers of the final season, director Hwang Dong-hyuk has teased the possibility for more Squid Game in a potential spinoff.
This potential expansion of the universe surrounding Squid Game highlights a broader trend in the entertainment industry—one with deep intellectual property roots. As authors continue to build on existing franchises, the role of copyrights becomes increasingly relevant.
Copyright law grants the owner of an original work exclusive rights to control the reproduction, distribution, and performance of that work as well as the preparation of any derivative works. Derivative works are based on already existing works that incorporate some features of the original while adding additional elements, such as translations, adaptations, and sequels.
Derivative works especially come to mind in the US TV and Film industry, where almost every movie in recent years feels like a sequel or spinoff. Since 2021, only 3 of the 40 top 10 annual films have been original works. Going back even further, since the 1970s, the market share of earnings from sequels has risen from 5 percent to more than 45 percent.
One reason for the prevalence of sequels might be that they are a safer and more profitable option for film production companies. Instead of spending money to market an original, production companies can utilize an existing work's popularity and recognition to minimize expenses.
Another reason might be to expand and prolong the IP portfolio associated with a work. Generally, current copyright protection for an individual author lasts for the author's life plus an additional 70 years. For corporate authorship (i.e., works made for hire), the term is the shorter of 95 years from first publication or 120 years from creation. However, copyright protection can extend to derivative works, effectively resetting the clock for when copyright protection expires. This is not blanket protection, but rather, protection covering new or changed features found in the derivative work otherwise not present in the original. One example is Disney's short film, Steamboat Willie from 1928, featuring the original design for Mickey Mouse. While the original design entered the public domain in 2024, different features found in newer versions, like those in Fantasia, are still protected under copyright.
As Squid Game evolves from an original breakout work to a potentially sprawling franchise with many derivative works, it reflects both creative and strategic motivations in the entertainment world. Whether driven by artistic inspiration or building an IP portfolio, these developments remind us that behind every new season or spinoff lies a calculated dance between storytelling and the legal protections that surround it.
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