The eight cases in this batch cover industries such as bio-pharmaceuticals, AI technology, and online gaming. Among them, Case 4—a ruling on “AI Face-Swapping” infringement—has drawn significant attention, offering judicial reference for global AI compliance.
Jiading Primary People’s Court, Shanghai ruled in the first instance of the Case (2024) Hu 0114 Min Chu No. 1326 (（2024）沪0114民初1326号) that the applet “X Yan” developed by Shanghai Yi X Network Technology Co., Ltd., which used AI algorithms to replace users’ faces in others’ original videos, infringed the copyright owner’s right of communication through information network. The 13 involved short videos of ancient costume displays were filmed by Chen, whose original creative arrangement is legally protected.
Although “X Yan” only replaced facial features, the court held that the video scenes, movements, and other elements were substantially similar to the original work. Moreover, the company profited through advertisements and membership services, which did not constitute fair use or qualify as a technology neutrality defense. The court ultimately ruled for CNY 7,500 (or USD 1,040) in compensation, with neither party appealing.
This case clarifies that “AI Face-Swapping” does not constitute original adaptation or fair use of original works. Service providers using AI technology have a reasonable duty of care and must not use algorithmic technology to infringe others’ copyrights.