Recently, the Beijing Internet Court delivered its first-instance verdict in China inaugural copyright infringement case related to virtual digital humans. This groundbreaking ruling marks a significant step forward in protecting intellectual property rights for digital humans in China. It provides crucial legal clarity for international companies involved in virtual digital human projects within the Chinese market and offers valuable insights for the global digital content industry.
The case involves virtual digital humans A and B, jointly created by Company J and Company Y. Their images were sold without authorization by a former employee, Sun, on a CG model platform. It represents China first judicial review of ownership and infringement issues concerning intellectual property rights in virtual digital humans.
Case Background and Key Issues
Virtual digital humans A and B were jointly developed by four organizations, including Company J and Company Y. Company J retains the copyright, while Company Y manages their operations. Impressively, virtual digital human A has gained more than 4.4 million followers across multiple platforms and was honored as one of the top eight trending events in the cultural and tourism industry in 2022, highlighting its substantial market impact.
The main disputes in this case focus on three critical questions: whether virtual digital human images qualify as copyright-protected works; how to determine rightful ownership; and whether the platform should bear joint liability for infringement. Resolving these issues is of landmark importance for the rapidly evolving metaverse industry and digital human economy.
Court Judgment and Legal Analysis
Following careful deliberation, the court determined that the full-body image of virtual digital human A and the head image of B were not derived from real human photographs but were instead the result of the production team’s distinctive artistic creativity. These works exhibit original aesthetic elements in their lines, colors, and overall design, thereby fulfilling the requirements for protection as artistic works under China’s Copyright Law. This decision broadens the conventional boundaries of copyright protection and provides a clear legal foundation for the protection of virtual images.
- Regarding the use of real human materials during creation, the court innovatively found that although real human body makeup materials were used in creating A image, the final product remains an artistic styling achievement. This does not affect its eligibility for protection as an artistic work. This approach acknowledges the realities of the creative process while protecting the uniqueness of digital creations, reflecting the judiciary open and inclusive attitude toward emerging technologies.
- On ownership, the court affirmed that Company J, as the copyright holder, and Company Y, as the exclusive licensee, both have legal standing to initiate infringement actions. This clarification defines the rights of multiple parties involved in digital human creation and provides valuable guidance for rights agreements in the industry.
- Concerning infringement, the court found that the model sold by defendant Sun closely resembled the protected work, especially in key original elements such as facial features, hairstyle, clothing, and their combination. This constitutes infringement of the right of communication through information networks. The court applied an overall observation and key comparison method, assessing both the general visual impression and the similarity of critical original elements.
- Regarding platform liability, the court determined that Company X, as an internet service provider, had taken reasonable measures including upload reviews, regular investigations, keyword blocking, and user agreement reminders. The company also provided an accessible infringement complaint channel and responded promptly to complaints. Given the virtual digital human’s limited recognition and distinctive features, it is difficult for the platform to proactively detect infringement. Therefore, the court ruled that Company X is not jointly liable for infringement. This decision balances protecting rights holders with defining platform responsibilities, offering clear guidance for compliant operation of digital content platforms.
Innovative Approach to Determining Compensation Standards
This case marks a significant advancement in judicial practice regarding damage assessment. Instead of simply accepting the plaintiff claimed licensing fee, the court conducted a comprehensive evaluation based on multiple factors, including the market value of the virtual digital human artistic attributes, the nature and extent of the infringement, the infringer degree of fault, and the actual harm caused.
Importantly, the court recognized the multifaceted commercial value of virtual digital humans. Their worth extends beyond the image itself to include operational investments, marketing efforts, and the fan economy. Therefore, when protecting rights related solely to the artistic work, it is important to distinguish the image value from broader commercial value. This approach demonstrates the judiciary sophisticated understanding of digital asset valuation. Ultimately, the court ordered the defendant to pay economic damages totaling 15,000 yuan for virtual digital human A and 5,000 yuan for B. This ruling reflects a firm stance against infringement while upholding proportionality.
Industry Impact and Compliance Considerations
This landmark ruling is the first to comprehensively address key issues such as work classification, ownership rights, and infringement evaluation concerning virtual digital human images from a judicial perspective. It sets an important precedent for intellectual property protection in the digital human field both within China and globally. The court emphasized that virtual digital humans, as a blend of technology and multiple rights holders, qualify for copyright protection regarding their external visual appearances. Meanwhile, their underlying technological components, including code and algorithms, may be protected under computer software copyright or trade secret laws.
In light of the rapid advancements in virtual digital human technology and its expanding applications, the legal principles and judgment standards established in this case are anticipated to guide the healthy and orderly development of the digital human industry and provide judicial safeguards to support a thriving digital economy ecosystem. For international companies entering the Chinese market, this case underscores several key compliance requirements:
- First, it is vital to clearly define ownership and licensing terms related to image copyrights, technological developments, and associated portrait and performer rights of real individuals through formal written agreements when creating or managing virtual digital human projects.
- Second, companies should establish strong content review and infringement complaint mechanisms to meet platform responsibilities and minimize infringement risks.
- Finally, developing a digital asset valuation system is essential to support precise value assessments in potential rights protection actions.
Comparative Law Insights from a Global Perspective
Legal protection for virtual digital humans is still evolving in many countries worldwide. In the United States, this protection is mainly provided through copyright law, the right of publicity, and trademark law. Meanwhile, the European Union primarily utilizes database rights and copyright to safeguard these entities. China recent case draws on international experiences while tailoring its approach to local conditions, resulting in a protection framework with distinct Chinese characteristics.
The resolution of this case not only establishes a solid legal foundation for the healthy growth of China virtual digital human industry but also offers clear compliance guidelines for international companies. It reflects the Chinese judiciary’s strategy of integrating global perspectives with practical considerations when addressing intellectual property issues related to emerging technologies. Within the global digital economy, this ruling provides valuable insights and solutions from China that contribute to the development of relevant international regulations.