In a landmark ruling, the Supreme People’s Court of China has found ByteDance guilty of copyright infringement and trade secret theft, ordering the company to pay Beijing Meishe Network Technology Co., Ltd. (Meishe) a total of RMB82.668 million. The case, which centers on ByteDance’s use of Meishe’s SDK software in its products such as Douyin (the Chinese counterpart of TikTok), has been ongoing for over three years. The court ruled that ByteDance had copied Meishe’s software code, specifically related to audio and video editing functions, and infringed on its intellectual property rights. In addition to financial compensation, ByteDance is required to issue an apology and cease the infringing activities.
[Case History]
Meishe, founded on 23 October 2014, is primarily focused on software development for video and audio editing, particularly through its proprietary SDK (Software Development Kit). Through equity penetration, the largest shareholder of the company is China Digital Video Holdings Limited, a Hong Kong-listed company. In April 2021, Meishe discovered that ByteDance’s Douyin app and several other ByteDance products had incorporated significant portions of Meishe’s SDK software, violating Meishe’s copyright. Meishe subsequently filed lawsuits in Beijing Intellectual Property Court and Beijing Higher People’s Court based on the PRC Copyright Law, the Anti-Unfair Competition Law, and the Regulations on the Protection of Computer Software, accusing ByteDance of copyright infringement and trade secret theft, seeking compensation of up to RMB 2.274 billion.
In 2023 and 2024, both the Beijing Intellectual Property Court and the Beijing Higher People’s Court ruled in favor of Meishe, finding that ByteDance had infringed on Meishe’s software copyright. The courts ordered ByteDance to apologize and pay approximately RMB26.7 million. Both parties appealed, bringing the case before the SPC.
[SPC Final Ruling]
In its final ruling, the SPC upheld the lower courts’ findings, affirming that ByteDance’s actions constituted copyright infringement and trade secret theft. The SPC ordered ByteDance to immediately cease the infringing activities and issued a public apology. Additionally, ByteDance was ordered to compensate Meishe for economic losses and reasonable expenses totaling approximately RMB82.668 million. Notably, the case was conducted under a confidential court procedure, and the judgment has not been publicly disclosed on judicial websites.
The key points of the SPC ruling included:
1. Code Comparison - ByteDance’s refusal to submit its software source code led the court to rely on reverse-engineering of the target code. This process revealed that the accused software bore striking similarities to Meishe’s SDK, leading to a determination of code plagiarism.2. Trade Secret Violation - ByteDance’s employee was found to have accessed Meishe’s proprietary software, leading to a breach of trade secrets.3. Legal Consequences - ByteDance was ordered to halt its infringing actions, issue an apology, and compensate Meishe for its losses.
[Parallel US Litigation and Latest Developments]
In parallel to the Chinese litigation, Meishe has also filed a lawsuit against ByteDance in the United States. The US case, which was initiated in 2020, accuses ByteDance of illegal use of Meishe’s technology and trade secrets, particularly in the development of TikTok. The lawsuit alleges that ByteDance copied proprietary software and algorithms from Meishe, violating US copyright and trade secret laws. Meishe is seeking damages and an injunction to prevent further use of its intellectual property.
The case has gone through preliminary motions, including challenges to evidence and jurisdiction. The court has yet to issue a final judgment. However, in December 2024, the US District Court for the Northern District of California ruled on a motion for the production of additional evidence, ordering ByteDance to provide the source code for the audio and video editing features of its software. This decision came after the court granted Meishe’s request for the fourth time to amend its motion for additional evidence. ByteDance has been given 30 days to submit the requested source code.
[Comment]
From an intellectual property law perspective, the Chinese court’s ruling is a landmark decision, emphasizing the protection of software-related intellectual property and trade secrets in a digital economy. By ordering ByteDance to cease the infringement and pay substantial damages, the SPC reinforced the importance of IP rights in the tech industry and set a precedent for similar cases in China. In terms of the parallel US case, we feel the Chinese judgment could potentially have certain impact, although US courts are not bound by foreign rulings. It could serve as compelling evidence of ByteDance’s infringement, especially if the US court accepts the findings of the Chinese court regarding the software code similarities. The ongoing litigation also underscores the international nature of IP disputes and the need for companies to navigate different legal systems when protecting their innovations across borders.
[Case History]
Meishe, founded on 23 October 2014, is primarily focused on software development for video and audio editing, particularly through its proprietary SDK (Software Development Kit). Through equity penetration, the largest shareholder of the company is China Digital Video Holdings Limited, a Hong Kong-listed company. In April 2021, Meishe discovered that ByteDance’s Douyin app and several other ByteDance products had incorporated significant portions of Meishe’s SDK software, violating Meishe’s copyright. Meishe subsequently filed lawsuits in Beijing Intellectual Property Court and Beijing Higher People’s Court based on the PRC Copyright Law, the Anti-Unfair Competition Law, and the Regulations on the Protection of Computer Software, accusing ByteDance of copyright infringement and trade secret theft, seeking compensation of up to RMB 2.274 billion.
In 2023 and 2024, both the Beijing Intellectual Property Court and the Beijing Higher People’s Court ruled in favor of Meishe, finding that ByteDance had infringed on Meishe’s software copyright. The courts ordered ByteDance to apologize and pay approximately RMB26.7 million. Both parties appealed, bringing the case before the SPC.
[SPC Final Ruling]
In its final ruling, the SPC upheld the lower courts’ findings, affirming that ByteDance’s actions constituted copyright infringement and trade secret theft. The SPC ordered ByteDance to immediately cease the infringing activities and issued a public apology. Additionally, ByteDance was ordered to compensate Meishe for economic losses and reasonable expenses totaling approximately RMB82.668 million. Notably, the case was conducted under a confidential court procedure, and the judgment has not been publicly disclosed on judicial websites.
The key points of the SPC ruling included:
1. Code Comparison - ByteDance’s refusal to submit its software source code led the court to rely on reverse-engineering of the target code. This process revealed that the accused software bore striking similarities to Meishe’s SDK, leading to a determination of code plagiarism.2. Trade Secret Violation - ByteDance’s employee was found to have accessed Meishe’s proprietary software, leading to a breach of trade secrets.3. Legal Consequences - ByteDance was ordered to halt its infringing actions, issue an apology, and compensate Meishe for its losses.
[Parallel US Litigation and Latest Developments]
In parallel to the Chinese litigation, Meishe has also filed a lawsuit against ByteDance in the United States. The US case, which was initiated in 2020, accuses ByteDance of illegal use of Meishe’s technology and trade secrets, particularly in the development of TikTok. The lawsuit alleges that ByteDance copied proprietary software and algorithms from Meishe, violating US copyright and trade secret laws. Meishe is seeking damages and an injunction to prevent further use of its intellectual property.
The case has gone through preliminary motions, including challenges to evidence and jurisdiction. The court has yet to issue a final judgment. However, in December 2024, the US District Court for the Northern District of California ruled on a motion for the production of additional evidence, ordering ByteDance to provide the source code for the audio and video editing features of its software. This decision came after the court granted Meishe’s request for the fourth time to amend its motion for additional evidence. ByteDance has been given 30 days to submit the requested source code.
[Comment]
From an intellectual property law perspective, the Chinese court’s ruling is a landmark decision, emphasizing the protection of software-related intellectual property and trade secrets in a digital economy. By ordering ByteDance to cease the infringement and pay substantial damages, the SPC reinforced the importance of IP rights in the tech industry and set a precedent for similar cases in China. In terms of the parallel US case, we feel the Chinese judgment could potentially have certain impact, although US courts are not bound by foreign rulings. It could serve as compelling evidence of ByteDance’s infringement, especially if the US court accepts the findings of the Chinese court regarding the software code similarities. The ongoing litigation also underscores the international nature of IP disputes and the need for companies to navigate different legal systems when protecting their innovations across borders.