China's animated blockbuster Ne Zha 2 was released in theaters across North America recently, bringing the "demon child" Ne Zha into the global spotlight with a stunning debut. At the same time, the film, directed by Jiaozi and produced over five years with the participation of more than 4,000 top Chinese animators, has broke Chinese box office records many times, making it the first film in China's film history to break the 10-billion-yuan mark.
While the work itself has been widely praised for its emotional depth, the film's producers have also paid meticulous attention to intellectual property (IP) protection, making it a compelling lesson in IP protection for the film industry.
Trademark matrix: Deepening proactive protection
Beyond the screen, "Ne Zha" has engaged in a silent battle over trademark rights. Examining the trademark layout of the film's producers, their strategy extends beyond the core categories of traditional film production and distribution to cover peripheral products such as toys, clothing, games, and books. This comprehensive trademark strategy has ensured all-around protection for elements related to the film while laying a solid foundation for maximizing commercial value and facilitating diversified development.
According to China Trademark Network (sbj.cnipa.gov.cn), Beijing Enlight Pictures Co., Ltd., an affiliated company of the film's producer Chengdu Enlight Animation Co., Ltd., filed 149 film-related trademark registration applications between 2019 and 2023. Among these, 146 trademarks have been approved. Additionally, the company has filed numerous word and figurative trademark applications for characters such as Ao Bing, and Shen Gongbao, as well as key elements from the film, including the Chaos Pearl, and the Mountains and Rivers Scroll, most of which have been successfully registered.
"Films are a combination of cultural and commercial value. A successful film, not only has strong box-office appeal, but also holds significant commercial potential through merchandising and derivative services, potentially developing into a long-lasting brand," said Zhao Hu, partner and lawyer at BZW Law Firm, in an interview with China Intellectual Property News. He emphasized that a well-received film's commercial value and influence do not end when the film leaves theaters; rather, the film's title, characters, and related elements contain huge potential commercial value. Thus, proactive trademark planning plays an essential role in expanding the commercial footprint of a film.
Content creation: Rooted in local culture
Behind the record-breaking box office lies the tireless dedication of the film production team.
On February 10, the official documentary of Ne Zha 2 was released, providing a comprehensive behind-the-scenes look at the animation team's pursuit of perfection. The film also incorporates a rich blend of traditional ethnic music, including authentic Dong ethnic mountain songs from Guizhou, as well as Pipa, Xiao, Sanxian, and Suona, greatly enhancing the film's audio-visual experience.
The success of Ne Zha 2 proves that traditional culture is an inexhaustible treasure trove. The key is how to use modern storytelling techniques and contemporary emotional touchpoints to activate its relevance in today's world. "To keep an IP alive and vibrant, it must be able to resonate with modern audiences, both in daily life and emotions. At the same time, character design must be innovative and captivating," said Zhu Yuqing, editor-in-chief of the China Film Investment and Financing Development Report and founder of Online Film Market.
In recent years, the industry has been exploring how to promote high-quality development in China's domestic film sector. According to Zhu, the key factors are content creation that strongly connects with contemporary audiences, sufficient investment with strict budget control by production companies, and meticulous craftsmanship and strategic release timing. "Only by following industry-driven logic in content creation, investment, production, and distribution, while respecting creative principles, can we truly promote the high-quality development of the whole film industry," concluded Zhu.
Derivative development: Unlocking business opportunities
"Officially licensed merchandise is now available!" On February 7, the official Weibo account of Ne Zha 2 released a series of posters showcasing a variety of film-related merchandise with a diverse and expansive range of products, including trading cards, picture books, plush toys, blind-box figurines, badges, and music skins. With the film's surging popularity, these official merchandise items are also experiencing strong sales.
A long industrial chain is one of the greatest advantages of animated films, particularly in the derivative products sector. How can this goldmine be fully tapped? Zhu Yuqing pointed out that unlike live-action films where actors' portraits and likenesses do not belong to the film producers, image development of animated film characters is typically owned by the production company. Through licensing and commercialization, they can generate substantial business returns. Derivative development requires long-term planning and should be considered as early as the scriptwriting stage. Especially character design should be visually striking, and the film's emotional appeal and aesthetics should be aligned with contemporary audiences. "Of course, a film's success is the prerequisite for copyright commercialization," said Zhu.
"Where does the lotus root powder used to recreate Ne Zha come from, Tianjin or Sichuan?" "Where is Ne Zha really from?" The heated discussions triggered by the film also hint at significant business potential. "Films should be integrated with tourism to create a cultural tourism effect, similar to the success of the game Black Myth: Wukong," suggested Song Lei, Head of the Development Research Department at China Animation Comic Game Group. He explained that scene-based consumption, such as film tourism, can help extend a film's copyright value over the long term. "Imagining if Ne Zha 2 had real-world cultural landmarks, it would provide huge momentum for local tourism and cultural industries," said Song.