The Changsha Intermediate People’s Court has issued a final judgment in a groundbreaking copyright infringement and unfair competition case involving AI-generated “Text-to-Video” technology. Tencent Technology (Beijing) Co., Ltd. (the “Plaintiff”) prevailed against Beijing Baidu Netcom Science and Technology Co., Ltd. (the “Defendant”), with the court upholding the first-instance judgement in favor of the Plaintiff.

Case Background

In this case, the Defendant’s “DuJia” software offered an “AI One-Click Video Generation” function that unlawfully extracted 3–7 second clips from the popular TV series Joy of Life, for which the Plaintiff holds exclusive information network dissemination rights. These clips were stored on the Defendant’s servers and made available to users. By entering text prompts and clicking “One-Click Video Generation,” users could generate and publish videos incorporating these clips on Baijiahao, a platform operated by the Defendant.

Court Rulings

The Changsha Kaifu District People’s Court (the first-instance court) held that:

• The extracted video clips, as components of audiovisual work, demonstrated originality and were therefore legally protected.
• The Defendant directly infringed the Plaintiff’s information network dissemination rights by uploading the clips to its servers and enabling public access.
• The Defendant must immediately cease all infringing activities and pay the Plaintiff compensation of RMB 800,000.

The Changsha Intermediate People’s Court (the second-instance court) affirmed on appeal that the Defendant’s storage of the clips in the “DuJia” software’s database, allowing public access at any time, met the statutory criteria for copyright infringement under China’s Information Network Dissemination Right.

Legal Significance

The Changsha Kaifu District People’s Court officially recognizes this case as China’s first copyright infringement lawsuit involving AI “text-to-video” technology. Both courts determined that the Defendant committed direct infringement rather than indirect or secondary infringement, establishing a crucial precedent for future AI-related intellectual property disputes in China.

East IP’s Legal Strategy Advice

East IP’s legal team demonstrate exceptional expertise amid the rapid evolving artificial intelligence technologies that create increasing complex legal challenges. When undertaking this case, East IP’s attorneys:

• Conducting comprehensive research into AI business models and underlying technologies.
• Applying rigorous copyright law analysis to establish the Plaintiff’s rights.
• Developing a strategic evidence collection plan to strengthen the case.

Looking Ahead

With this precedent-setting victory, East IP’s legal team is at the forefront of AI-related intellectual property litigation. The firm remains committed to providing expert legal counsel to businesses navigating the evolving regulatory landscape of AI and copyright law, ensuring compliance and legal protection in the digital age.

The case was handled by East IP’s Partner Jack Jiang, Associate Zhang Tianhao and Zhu Nandi, along with their legal team.