Last week, the Beijing IP Court made a noteworthy advancement by issuing the first effective judgment in China focused on protecting the structure and parameters of AI models.

亿睿科信息技术（北京）有限公司与北京抖音科技有限公司侵害著作权纠纷、不正当竞争纠纷二审民事判决书

In summary, the Court considered that the creation of comic images—encompassing style setting, stylized mass production, model training, and user generation—does not typically qualify as a creative act under copyright law. While the structure and parameters of the AI model may exhibit certain similarities and overlap, their use in a substitutive manner could potentially be viewed as plagiarism, which may lead to concerns regarding unfair competition.

This ruling is significant not only for its exploratory nature but also for its illustrative value in safeguarding future AI models and addressing similar cases.

Case Overview

Douyin Company has stated that the transformation comic effect model at the heart of this case was created using a foundational model, along with hand-drawn comic data and relevant real-life data. The model's structure and parameters are continually refined to improve its performance. This model powers the transformation comic effect feature in the Douyin app, enabling users to convert their photos and videos into a comic style in real-time. Following this, Yirui Technology's B612 Kaji app launched a similar feature that includes a girl comic effect. It is noteworthy that both applications yield strikingly similar results when applying style transformations to the same image and exhibit a high degree of similarity in their underlying structure and parameters.

Consequently, Douyin Company claims that Yirui Technology has used the structure and parameters of its transformation comic effect model without authorization, which they believe constitutes infringement. Yirui Technology has not provided evidence of independently developed models or shown significant differences between the models in question.

Court Opinion

The Beijing Intellectual Property Court emphasized that Douyin Company was defending its competitive interests as stated in Article 2 of the Anti-Unfair Competition Law, particularly concerning the model of its transformation comic special effects, including the structure and parameters claimed by the plaintiff. The evidence shows that Douyin Company has invested significantly in the research and development of this model, leading to innovative advantages, operational profits, and market benefits. As a result, these factors should be acknowledged as competitive interests safeguarded by the Anti-Unfair Competition Law.

The court found that Yirui Technology Company used the structure and parameters of Douyin Company's transformation comic special effects model without permission. This is considered a breach of business ethics in the artificial intelligence industry, violating Douyin Company's rightful claims and undermining fair market competition, which ultimately negatively impacts consumers' long-term interests. This conduct is categorized as unfair competition under Article 2 of the Anti-Unfair Competition Law.

Key Points from the Ruling

1. The structure and parameters of the transformation comic special effects model are acknowledged as competitive interests protected by the Anti-Unfair Competition Law.

Douyin Company has invested significant operational resources into the development of this model, which has been continuously optimized. The resulting parameters and structure allow users to create animated images that accurately reflect real individuals when using the Douyin App, providing the company with innovative advantages, operational profits, and market benefits.

2. The unauthorized use of model structures and parameters developed by others through data training is considered a breach of recognized business ethics in the artificial intelligence field.

Companies engaged in AI model development must avoid using the improved model structures and parameters of others without permission, as this is regarded as unethical conduct.

3. Such unauthorized use disrupts the competitive market order and adversely affects consumers' long-term interests.

The actions of the accused distort the normal supply and demand dynamics of the transformation comic special effects model, impeding Douyin Company's ability to gain competitive advantages and recover its innovative investments. If these actions persist unchecked, they could hinder the introduction of innovative products by digital technology firms, limit consumer choices, and ultimately undermine consumers' rights and interests.