China Enhances Penalties for AI IP Theft

Chinese courts handled 908 cases involving AI-generated content, model parameters, and data ownership in 2025. The rules increase penalties for intentional and serious IP violations, including cases where companies use affiliates or legal representatives to evade liability. Under the new guidelines, entities that rely on IP infringement as a primary business or profit source will face more severe consequences. This includes cases where affiliated companies or legal representatives are used to mask actual control or evade liability through exemption agreements. The measures target entities that attempt to bypass IP laws through complex corporate structures. In a recent case, the court ordered a 20 million yuan compensation to support the plaintiff's claims. This measure aims to protect the core competitiveness of high-tech enterprises by holding the entire chain of malicious infringement accountable. The Supreme People's Procuratorate's Intellectual Property Office reported a crackdown on core technology theft involving chip design, manufacturing, and new energy sectors. A total of 9,102 people were involved in litigation, including 159 prosecuted for crimes involving the infringement of trade secrets. One specific case resulted in a compensation ruling of 70.56 million yuan. The move aims to strengthen protections for AI innovations. This development follows reports of numerous IP damage cases in China and a Beijing court ordering damages for AI-related intellectual property infringement.