In early November 2024, the Changshu Municipal People’s Court issued a first-instance judgment in the case where the plaintiff Lin Chen sued the defendants, Changshu Qin Hong Real Estate Development Co., Ltd. and Hangzhou Gauss Air Film Technology Co., Ltd., for copyright infringement of an AI-generated work. The court affirmed that AI-generated images are protected under the PRC Copyright Law. This case, referred to as China’s Second AI Work Copyright Case, marks another milestone in the field of AI-generated content copyright in China.
Previously, China’s first AI-generated image copyright case took place at the end of 2023 and was heard by the Beijing Internet Court. The court ruled that the work at issue was copyright-protected as it involved significant intellectual labor by the creator during the AI generation process. Although the plaintiff was only awarded RMB500 in compensation, the case was significant for establishing the first standard for copyright recognition of AI-assisted creations, providing critical guidance for future cases.
Case History
In this case, digital artist Lin Chen (online alias “Tudou_man”) created the work Companion Heart using AI tools MidJourney and Photoshop. The artwork depicts a red heart reflected in water, forming a complete heart shape. It was first published on 14 February 2023 and registered with China’s Copyright Administration as a two-dimensional (2D) artistic work on 7 April 2023. In March 2024, Lin discovered that Hangzhou Gauss Air Film Technology Co., Ltd. had, without authorization, used his design to produce a three-dimensional (3D) installation for commercial purposes. After failed negotiations, Lin filed a lawsuit against Hangzhou Gauss Air Film Technology Co., Ltd. and Changshu Qin Hong Real Estate Development Co., Ltd., seeking an injunction, a public apology, and RMB500,000 in damages. The case was heard on 14 June 2024, by the Changshu Municipal Court.
The court ultimately determined that Companion Heart demonstrated originality through its use of elements such as setting, environment, color, light, and composition, meeting the criteria of an artistic work protected by copyright law. However, the court limited the protection to the registered 2D work, excluding the 3D artistic installation. While the defendants were found to have infringed Lin’s copyright and right of attribution by using the image without authorization, the creation of the 3D installation was not considered an infringement due to the lack of direct reproduction from 2D to 3D. The court awarded Lin RMB10,000 in damages and ordered Hangzhou Gauss Air Film Technology Co., Ltd. to issue a public apology.
On 12 November 2024, Hangzhou Gauss Air Film Technology Co., Ltd. issued a public apology on the Xiaohongshu platform, admitting infringement and agreeing to pay the ordered compensation. This gesture indicates that the defendants have accepted the first-instance judgment and will not appeal.
Legal Focus
The core legal issues in these two cases revolve around originality and authorship of AI-generated works. The courts clarified that works created using AI tools can be protected under copyright law if they reflect the creator’s intellectual contribution through the selection and arrangement of elements. The copyright belongs to the human creator who guided the AI, not the AI tool itself or its developer. This standard provides a clear foundation for protecting AI-generated content.
In the Companion Heart case, the court further refined the boundaries of copyright protection, affirming that only the registered 2D artistic work was covered, while the 3D derivative installation was not. The court reasoned that although the 3D installation shared conceptual similarities with Lin’s 2D design, it did not constitute a direct reproduction from 2D to 3D and therefore did not infringe. This judgment highlights the specificity and limitations of copyright protection and serves as a caution to creators: copyright registration should cover not only the core work but also derivative forms or applications, such as industrial designs, 3D patents, or multi-angle copyright registrations.
Comment
These two cases represent significant milestones in China’s copyright protection of AI-generated content, demonstrating the courts’ flexibility and adaptability in applying traditional copyright principles to the realities of new technologies. They establish a legal framework that acknowledges the intellectual contributions of human creators in AI-assisted works, thereby encouraging innovation and supporting the growth of creative industries. At the same time, these judgments reveal practical challenges for creators, such as the need to comprehensively protect both the original designs and their derivative forms through appropriate registrations.
For businesses, these cases send a clear legal signal. When commercially using AI-generated content, businesses need to obtain proper authorization from the creators and respect their right of attribution in marketing and promotional activities. Companies are also suggested to strengthen compliance with intellectual property laws in this regard, to avoid litigation risks. Further, monitoring the use of intellectual property on digital platforms is critical, and companies should implement mechanisms to detect and address unauthorized uses promptly.
Previously, China’s first AI-generated image copyright case took place at the end of 2023 and was heard by the Beijing Internet Court. The court ruled that the work at issue was copyright-protected as it involved significant intellectual labor by the creator during the AI generation process. Although the plaintiff was only awarded RMB500 in compensation, the case was significant for establishing the first standard for copyright recognition of AI-assisted creations, providing critical guidance for future cases.
Case History
In this case, digital artist Lin Chen (online alias “Tudou_man”) created the work Companion Heart using AI tools MidJourney and Photoshop. The artwork depicts a red heart reflected in water, forming a complete heart shape. It was first published on 14 February 2023 and registered with China’s Copyright Administration as a two-dimensional (2D) artistic work on 7 April 2023. In March 2024, Lin discovered that Hangzhou Gauss Air Film Technology Co., Ltd. had, without authorization, used his design to produce a three-dimensional (3D) installation for commercial purposes. After failed negotiations, Lin filed a lawsuit against Hangzhou Gauss Air Film Technology Co., Ltd. and Changshu Qin Hong Real Estate Development Co., Ltd., seeking an injunction, a public apology, and RMB500,000 in damages. The case was heard on 14 June 2024, by the Changshu Municipal Court.
The court ultimately determined that Companion Heart demonstrated originality through its use of elements such as setting, environment, color, light, and composition, meeting the criteria of an artistic work protected by copyright law. However, the court limited the protection to the registered 2D work, excluding the 3D artistic installation. While the defendants were found to have infringed Lin’s copyright and right of attribution by using the image without authorization, the creation of the 3D installation was not considered an infringement due to the lack of direct reproduction from 2D to 3D. The court awarded Lin RMB10,000 in damages and ordered Hangzhou Gauss Air Film Technology Co., Ltd. to issue a public apology.
On 12 November 2024, Hangzhou Gauss Air Film Technology Co., Ltd. issued a public apology on the Xiaohongshu platform, admitting infringement and agreeing to pay the ordered compensation. This gesture indicates that the defendants have accepted the first-instance judgment and will not appeal.
Legal Focus
The core legal issues in these two cases revolve around originality and authorship of AI-generated works. The courts clarified that works created using AI tools can be protected under copyright law if they reflect the creator’s intellectual contribution through the selection and arrangement of elements. The copyright belongs to the human creator who guided the AI, not the AI tool itself or its developer. This standard provides a clear foundation for protecting AI-generated content.
In the Companion Heart case, the court further refined the boundaries of copyright protection, affirming that only the registered 2D artistic work was covered, while the 3D derivative installation was not. The court reasoned that although the 3D installation shared conceptual similarities with Lin’s 2D design, it did not constitute a direct reproduction from 2D to 3D and therefore did not infringe. This judgment highlights the specificity and limitations of copyright protection and serves as a caution to creators: copyright registration should cover not only the core work but also derivative forms or applications, such as industrial designs, 3D patents, or multi-angle copyright registrations.
Comment
These two cases represent significant milestones in China’s copyright protection of AI-generated content, demonstrating the courts’ flexibility and adaptability in applying traditional copyright principles to the realities of new technologies. They establish a legal framework that acknowledges the intellectual contributions of human creators in AI-assisted works, thereby encouraging innovation and supporting the growth of creative industries. At the same time, these judgments reveal practical challenges for creators, such as the need to comprehensively protect both the original designs and their derivative forms through appropriate registrations.
For businesses, these cases send a clear legal signal. When commercially using AI-generated content, businesses need to obtain proper authorization from the creators and respect their right of attribution in marketing and promotional activities. Companies are also suggested to strengthen compliance with intellectual property laws in this regard, to avoid litigation risks. Further, monitoring the use of intellectual property on digital platforms is critical, and companies should implement mechanisms to detect and address unauthorized uses promptly.