CHINA Trends and Developments Contributed by: Qiang Ma, Yi Xu and Lei Wu, Jingtian & Gongcheng
GenAI’s result output and use of generated content: applicability of “safe harbour” rule for Internet Service Providers to AI platforms Three judgments by courts in Guangdong, Zhejiang, and Shanghai The first judgment, from Guangzhou Internet Court (First Instance – 8 February 2024), was as follows. • Plaintiff’s work – Artworks of the “Ultraman” images. • Alleged infringing acts – The defendant operates an AI platform (with AI dialogue and AI-generated painting functions); after users input instruc - tions containing the keyword “Ultraman”, relevant images of “Ultraman” can be generated. • Summary of judgment – The defendant’s AI plat - form infringes the plaintiff’s rights of reproduction and adaptation: (a) order to cease infringement – adopt techni - cal measures to prevent users from generating infringing content; and (b) order to compensate for economic losses + reasonable expenses = CNY 10,000. The second to be considered was issued by Hang - zhou Internet Court (First Instance – 25 September 2024) and Hangzhou Intermediate Court (Second Instance – 30 December 2024). • Plaintiff’s work – Artworks of the “Ultraman” images. • Alleged infringing acts – The defendant operates an AI platform (supporting functions such as text-to- image, image-to-image, and online model training). The user’s acts are as follows. (a) Select to create a model, upload pictures relat - ed to “Ultraman”, choose a base model, adjust parameters for training, and, after the training is completed, generate a LoRA model similar in style to the “Ultraman” work. The cover picture and sample pictures of the model are substan - tially similar to the Ultraman image, and the model can be collected, applied, published, or shared via links. (b) By inputting “Ultraman”-related prompts, selecting a base model, superimposing the Ul - traman LoRA model, and adjusting parameters, users generate pictures substantially similar to
the “Ultraman” image. The generated pictures can be collected, published, downloaded, or shared via links. • Summary of judgment – The defendant’s AI plat - form constitutes contributory infringement of the plaintiff’s right to communicate works through information networks (by having constructive knowledge of the infringement, failing to take the necessary measures, failing to fulfil the reasonable duty of care, and having subjective fault): (a) order to cease infringement – immediately delete the infringing Ultraman pictures and Ultraman LoRA models that have been gener - ated and published, stop providing the release and application services of the relevant Ultra - man LoRA models, and take necessary meas - ures to effectively prevent infringing acts, etc; and (b) order to compensate for economic losses + reasonable expenses = CNY30,000. The third judgment was issued by Jinshan District Court of Shanghai (First Instance – 3 November 2025). • Plaintiff’s work – The character image of “Medusa” in the “Fights Break Sphere” series of animations. • Alleged infringing acts – (a) Defendant 1: AI image generation platform. (b) Defendant 2 (a network user of Defendant 1’s AI platform) used the “Train LoRA” function of Defendant 1’s AI platform, input the “Medusa” picture package as training materials to gener - ate a “Medusa” LoRA model, and then pub - lished the involved “Medusa” LoRA model in its own account. When other ordinary users used the involved “Medusa” LoRA model, they can generate various pictures identical or substan - tially similar to the “Medusa” image by input - ting different prompts. • Summary of judgment – (a) Defendant 2 (a user of Defendant 1’s AI plat - form) constitutes direct infringement, infringing the plaintiff’s right of reproduction and right to communicate works through information networks. (b) Defendant 1 (the AI platform) does not con - stitute direct infringement; moreover, it has fulfilled the reasonable duty of care, has no
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