China’s Supreme Court to Strengthen AI and Intellectual Property Protections Amid Rapid Tech Advancements

China’s Supreme People’s Court has announced plans to enhance protections for artificial intelligence (AI) and intellectual property (IP) rights as part of the country’s broader strategy to foster innovation-driven industries. The commitment was outlined in the court’s annual work report, presented by Chief Justice Zhang Jun to the National People’s Congress (NPC) on Saturday.

Zhang emphasized that the judiciary is committed to ensuring the lawful application of AI while strictly safeguarding innovation in accordance with Chinese law.

“Measures were taken to punish infringements using AI technology, promoting orderly and regulated development,” Zhang told the NPC.

AI and IP Protection in China’s Tech Race

As China seeks to move up the industrial value chain and counter Western technology restrictions, particularly U.S. sanctions, AI is expected to play a pivotal role. The government is actively supporting homegrown AI firms, such as the rising start-up DeepSeek, to strengthen domestic capabilities in AI-powered computing. However, the rapid development of AI also raises concerns over patent disputes, privacy violations, and defamation, prompting authorities to accelerate regulatory efforts.

The Supreme Court’s work report detailed efforts to curb abuses within AI and other emerging technologies, striking a balance between promoting innovation and preventing legal violations. Among the key issues courts are grappling with is the copyright ownership of AI-generated content, specifically whether rights belong to the creator of an AI prompt or the AI system itself.

Zhang acknowledged that IP-related legal disputes had surged in recent years, reflecting the increasing complexity of the technological landscape.

“The balancing of interests has become more complex, with foreign factors becoming more prominent,” Zhang noted, referencing the involvement of international entities in IP conflicts.

In 2024 alone, Chinese courts handled more than 490,000 intellectual property cases, a significant increase from 100,000 cases in 2013. The Intellectual Property Court, established under the Supreme Court in 2019, has seen a rising number of disputes related to strategic emerging industries, which accounted for roughly one-third of its total caseload last year.

Growing Legal Framework for AI and Emerging Technologies

In response to these challenges, Chinese courts have started issuing rulings on copyright infringements related to AI-generated content. The Supreme Court is reportedly drafting guidelines to standardize legal decisions in such cases.

Beyond judicial measures, legislative action is also gaining momentum. NPC Chairman Zhao Leji, in his annual report to the legislature, stated that China would intensify legislative research into emerging fields, including AI, the digital economy, and big data. Several NPC delegates have already proposed new laws to regulate AI usage and ensure fair business practices.

For instance, Zhang Tianren, chairman of battery manufacturer Tianneng Group, has voiced concerns about misleading AI-generated advertisements that deceive consumers and investors. He also highlighted AI-related privacy risks, noting that the lack of clear legal liability often leaves victims without effective recourse.

China has been one of the first countries to introduce AI regulations, implementing interim measures since August 2023. These rules require AI service providers to undergo security assessments and obtain government approval before launching mass-market AI products.

Global AI Regulation and Business Protections

While China continues refining its AI regulatory framework, the European Union became the world’s first entity to introduce a comprehensive AI law in August 2023, applying to all 27 member states. China will likely observe and adapt global best practices as it crafts its long-term AI governance policies.

In addition to AI protections, China’s Supreme Court reaffirmed its commitment to protecting private enterprises from judicial corruption and unfair financial burdens. The court vowed to take action against law enforcement officials who engage in extortion or harass businesspeople.

Debt-laden local governments have also been scrutinized for pressuring firms to write off government debts or imposing excessive fines to bolster public finances. The court’s stance underscores the government’s efforts to maintain economic stability while fostering a fair and competitive business environment.

As AI and other emerging technologies continue to reshape industries, China’s evolving legal framework will be crucial in determining the country’s technological and economic future.

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