Judicial Responses to Cyberspace Evolution: China’s Top 10 Internet-Related Cases Regulating AI, Virtual Property, and Data Processing.

Recently, the selection results of "China’s Top 10 Typical Cases of Internet-Related Justice (2023-2024)" were announced. This selection was jointly organized by Southwest University of Political Science and Law and the three major Internet courts in Beijing, Hangzhou, and Guangzhou. The cases were evaluated by theoretical and practical experts in Chinese cyberspace law. The final top ten cases cover cutting-edge topics such as the governance of "Internet water armies," ownership of AI-generated content, protection of virtual property, the digital extension of personality rights, etc. These cases reflect the Chinese judiciary’s proactive and evolving response to regulating new formats in the digital economy.

The Top 10 cases are as follows:

Case 1:  Infringement Case Involving Organizing "Online Water Armies"

This case clarified that organizing and manipulating "Internet water armies" to engage in "traffic fraud" or "mass reporting to delete posts" constitutes infringing behaviors that not only disrupt the network information ecosystem but also undermine fair competition in related markets, harming the public's right to know and fair-trading rights. The ruling expanded the scope of regulation over online false information by equating the interference with the truthful presentation of information with the intentional fabrication and dissemination of false information.

Case 2: Infringement of Personality Rights via Virtual Avatars

The court ruled that creating or using a virtual avatar of a natural person without consent constitutes an infringement of personality rights. The platform allowed users to build virtual characters using real names and portraits in its algorithm design without fulfilling their duty of care, thus substantially participating in the infringement. This case highlights strengthened protections for personality rights amid advancements in AI and virtual reality technologies, while underscoring the responsibilities and obligations of content service providers.

Case 3: Unfair Competition Involving Game Virtual Property

This case explored the legal nature of virtual assets (e.g., game accounts, in-game currency) and the boundaries of third-party trading platforms' behaviors. The court determined that third-party platforms offering game accounts and illegal game currency trading services constitute unfair competition. The "limited openness" rule established in this case balances game operators’ rights, industry order, and user demands for virtual property transactions, providing judicial guidance for regulating virtual asset circulation in online games.

Case 4: Copyright Infringement Involving AI-Generated Images

This case recognized users as authors of AI-generated images and confirmed the copyrightability of AI-generated content. By arranging visual elements and layout through prompts, users demonstrated personalized expression, meeting the originality standard for copyright. The ruling provides legal certainty for innovators using AI and stimulates ongoing, in-depth discussion and research on this issue.

Case 5: Legality Review of Cross-Border Personal Information Processing

As the first published cross-border personal information transfer dispute since China’s Personal Information Protection Law took effect, this case clarified that users’ consent to privacy policies is valid only if the platform's related regulations comply with openness and transparency principles. Any cross-border personal information processing beyond contractual necessity must be prominently disclosed and requires separate consent. The judgment offers compliance guidance for multinationals and promotes a balance between global data flows and privacy protection.

Case 6: Unfair Competition via Improper Use of Public Data

Serving as China's first public data-related case, this case discussed the legal boundaries of the commercial use of public data. It established foundational principles requiring users to ensure the legality, security, and reliability of the data. The judgment seeks to equitably address the interests of various data industry stakeholders and foster the sector's healthy growth through regulated public data use.

Case 7: Infringement Liability for Traffic Hijacking

Breaking from traditional anti-fair competition approaches, the court recognized "traffic" as virtual property and determined that using technical means to hijack traffic constitutes infringement. This judgment pioneers judicial remedies for intangible assets in the digital economy and clarifies the liability elements, safeguarding fair market competition.

Case 8: AI-Generated Voice Infringing Natural Person’s Voice Rights

This case clarified that a natural person's voice has personal exclusivity and explored the protection of voice rights under AI voice synthesis technology. Unauthorized AI processing of recorded voice thus constitutes infringement. Similar to Case 2, this underscores ethical and legal boundaries for personality rights in the digital age.

Case 9: Unfair Competition via Unauthorized Data Scraping

This case explored data ownership issues and the legitimacy of data scraping. The court determined that unauthorized access and use of WeChat data through plug-in technology constitutes unfair competition. The judgment proposed a "classified protection" model for data rights, clarifying the different data rights and boundaries for lawful data scraping. This case provides judicial guidance for protecting data ownership while preventing platform data monopolies, so as to promote healthy market competition.

Case 10: Judicial Recognition of Data Intellectual Property Registration Certificates

This case affirmed for the first time that Data Intellectual Property Registration Certificates can serve as prima facie evidence of dataset ownership. It provides judicial endorsement for data assetization, accelerating the transition of the data property registration system from policy exploration to practical implementation, helping to ensure the steady development of the digital economy.