As reported by the Global Times, the Guangzhou Internet Court has ruled that an AI company that provided a text-to-image generator to paid subscribers was liable for copyright infringement based on the generation of the comic character Ultraman or similar figures. The AI generated images violated the reproduction and adaptation rights of the author.
The damages awarded were low (by US standards):10,000 yuan ($1,389).
But, in the most fascinating part of the decision, the Court ordered the AI company to undertake:
- setting up a complaint reporting system similar to notice-and-takedown,
- reminding users of copyright restrictions, and
- clear labeling AI-generated images if they may cause confusion among the public.
Similar to the Beijing Internet court’s decision on authorship, the Guangzhou Internet Court recognized the technological innovation provided by generative AI, which is still in its early stages, and the need to balance the interests of the copyright owners and the AI companies. The court saw the need to develop an AI governance system balancing these interests.