In 2024, a remarkable event unfolded in Hollywood. “Backrooms,” a film produced by A24 and directed by 20-year-old YouTuber Kane Parsons, rocketed past expectations. This indie horror sensation, born from a viral internet video, became A24’s highest-grossing movie ever, earning over $200 million worldwide. But behind the headlines and box office numbers, the story of Kane Parsons and A24 offers important lessons for creators and small business owners about intellectual property, copyright, trademarks, and turning viral content into a thriving, legally protected business.
As a Los Angeles business attorney with years of experience helping creators and entrepreneurs, I have seen firsthand the excitement and pitfalls of viral success. Let’s break down how creators can protect their ideas, navigate licensing, and transform online hits into sustainable revenue.
From Meme to Mainstream: The Rise of Backrooms
The Backrooms started as a creepy, computer-generated video posted by Kane Parsons on YouTube. Its liminal spaces, yellow-tinted halls, and unsettling ambiance captured the internet’s imagination. The concept exploded, inspiring countless memes, fan videos, and even games. Eventually, A24 saw the potential and brought Parsons on board to direct a feature film, resulting in a box office phenomenon.
This journey from online concept to major motion picture is every creator’s dream. However, it is also a minefield of legal challenges. Here is what you need to know if you want to follow in Parsons’ footsteps, or simply protect your own viral content.
Copyright: The Core of Viral IP Protection
Copyright is the foundation of creative ownership. Under U.S. law, any original work fixed in a tangible form, like a YouTube video, artwork, or written content, is automatically protected by copyright. This means that as soon as Kane Parsons uploaded his original Backrooms video, he had rights over it.
But here is the catch. While copyright gives you legal protection, enforcing those rights is another matter. If you do not register your work with the U.S. Copyright Office, your ability to sue for infringement is limited. Registration also makes it easier to license your work, seek damages, and deter copycats. As a copyright attorney Los Angeles creators rely on, I always recommend registering viral content as soon as possible.
Case Study: Fan Content and Community-Built IP
The Backrooms phenomenon grew because fans created their own versions and stories. This is common with viral IP, where the community builds on the original idea, sometimes blurring the lines between the creator’s rights and fan-made content. Legally, the original creator owns the core concept, but fan works may be protected under fair use or transformative use, depending on how much they differ.
If you are a creator, establish clear guidelines for fan content. For example, allow non-commercial fan art but require licensing for any commercial uses. This balances community engagement with legal protection.
Trademark Online Content: Protecting Your Brand
While copyright covers the creative work itself, trademarks protect names, logos, and symbols that distinguish your brand. For Kane Parsons, trademarking “Backrooms” was a critical step. This prevents others from releasing movies, games, or merchandise under the same or confusingly similar names.
Registering a trademark is complex. It involves searching existing marks, filing with the U.S. Patent and Trademark Office, and sometimes defending your rights in court. An entertainment IP attorney in LA can help you navigate these steps and avoid costly mistakes.
Content Licensing Agreement: Turning Views Into Revenue
The real magic happens when online popularity is transformed into income. For Parsons, this meant negotiating a content licensing agreement with A24. This allowed the studio to adapt his Backrooms concept into a film while he retained certain rights and received compensation.
A solid licensing agreement defines the scope, meaning what rights are granted, along with duration, payment terms, creative control, and more. Without one, you risk losing control of your creation or missing out on revenue. Our law firm drafts and negotiates licensing deals that protect your interests and maximize earnings.
Case Study: Small Business IP in the Digital Age
Consider the story of Maya, a Los Angeles artist who created a viral cartoon series. Like Parsons, she faced offers from publishers and toy companies. With our help, Maya registered copyrights and trademarks, then licensed her characters under carefully structured agreements. Today, she earns steady royalties and owns her IP.
Legal Complexities: Adapting Fan-Driven IP
Movies like “Backrooms” often draw from vast pools of fan-made content. Adapting these ideas for commercial use raises tricky questions:
- Who owns what? If fan material is used, were the rights cleared?
- Are there risks of copyright infringement claims from fans or other parties?
- How can the creator ensure the core concept remains intact?
This is where a creator business law specialist is essential. Our firm conducts IP audits, reviews contracts, and builds strategies to secure all necessary rights. As a result, your project stays clean, which reduces the risk of lawsuits that can derail a deal.
Turning Online Popularity Into a Legally Protected Business
Viral fame is fleeting, but smart creators turn it into long-term value. Here is how our clients do it.
Register Your IP Early
If you think your work has viral potential, register your copyrights and trademarks immediately. This gives you the legal tools to defend your rights and pursue licensing or merchandising.
Monitor and Enforce Your Rights
Set up alerts for unauthorized use of your content. Then send cease and desist letters or DMCA takedowns when needed. Our team handles these actions, so you can focus on creating.
Build a Licensing Strategy
Decide how others can use your work, whether free for fans or paid for commercial partners. Draft clear licensing terms. A content licensing agreement protects your interests while opening new revenue streams.
Seek Legal Guidance Early
Consult an attorney before signing contracts or selling rights. Many creators lose control or income by rushing into bad deals. As a trusted Los Angeles business attorney, I help clients avoid common pitfalls and negotiate favorable terms.
Consider Business Formation
If your content takes off, form a business entity such as an LLC. This separates your personal assets, simplifies tax planning, and makes it easier to work with studios or investors.
Why Small Business Owners and Creators Need Legal Protection
The internet is a wild west for creativity. But without legal protection, your viral idea can be stolen, diluted, or lost. At Carbon Law Group, we offer:
- Copyright and trademark registration
- Licensing and merchandising agreements
- IP audits and enforcement strategies
- Contract review and negotiation
- Business formation and tax planning
Our goal is to help small business owners and creators turn online buzz into sustainable, protected businesses. The success of Kane Parsons and A24 is inspiring, but it is also a cautionary tale about the importance of proactive IP protection.
Let’s Turn Your Viral Idea Into a Lasting Brand
If you have a viral video, hit song, or unique online concept, now is the time to protect it. Schedule a consultation with a copyright attorney Los Angeles small business owners trust. Together, we can develop a strategy for viral IP protection, negotiate licensing deals, and help you thrive in the digital age.
The story of Backrooms shows what is possible when creativity, business savvy, and legal protection come together. With the right guidance, your next idea could be the next $200 million blockbuster. Contact Carbon Law Group today at carbonlg.com to get started.
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