CHINA Trends and Developments Contributed by: Binxin Li, Guangzhen Shang and Sally Wang, LeanWill Law Firm
ed several infringement cases related to AIGC and datasets. Regarding copyright protection, Chinese courts generally recognise the protectability of AIGC under the Copyright Law, such as in: • the first AIGC text-to-image case of Yunkai Li v Yuanchun Liu; • the first AIGC service provider case of SCLA v YouthGPT; and • the first AI virtual digital figure case of XMOV v Hangzhou Sihai. The authors expect that the copyrightability of AIGC may be further discussed and clarified in future cases or legislation, such as regarding human contributions versus AI contributions. Data is increasingly demonstrating its value in the digital economy, particularly in the AI era. Data that meets originality requirements may be protected as copyrightable works, non-public data may be protected as trade secrets, and public data that confers a competitive interest to the owner may seek protection under the Anti- Unfair Competition Law. Data IP registration can serve as preliminary evidence of data ownership and legitimacy of data sources in litigation, as recognised by the Beijing IP Court in Yinmu v DataTang. As society becomes more digitalised, intercon - nected and open, AI and data-related disputes are becoming increasingly prominent. A nota - ble trend is AI and data-related cases often being highly complex, involving overlapping issues such as open-source, software, AIGC and data; some cases involve a combination of topics, including copyright, trade secrets and unfair competition, as seen in Yinmu v Data - Tang (open-source data protection case) and
XMOV v Hangzhou Sihai (AIGC protection case for virtual digital figures). The life sciences and pharmaceuticals industry, known for its intensive data processing, is not exempt from this trend, and related players are advised to prepare for potential disputes. Moreover, with the introduction and enforcement of laws such as the Personal Information Protec - tion Law and the Data Security Law, companies handling sensitive information within the life sci - ences and pharmaceuticals industry – including personal data, medical data and genetic data – can expect significant changes in their daily compliance practices. Recently, the Shang - hai Cyberspace Administration issued a warn - ing and imposed a fine on a Chinese medical company for failing to meet the data protection standards set by the Data Security Law, resulting in personal data leaks. Therefore, companies in the life sciences and pharmaceuticals industry should pay close attention to data compliance issues, including data collection, storage, use and cross-border data flow. Abuse of IP rights With the substantial expansion of IP enforce - ment, concerns surrounding the abuse of IP rights have become prominent in China, and cases related to malicious IP enforcement have emerged in recent years. The number of accept - ed cases regarding malicious IP enforcement across the country surged from 74 in 2022 to 152 in 2023, with an increase rate of 105.41%. The SPC has addressed this issue by incorpo - rating a clause into its judicial interpretation, empowering courts to compel parties to disclose information regarding ownership, infringement and prosecution disputes related to the asserted IP rights; it has also provided guidance through representative cases.
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