Key Case Insights
ByteDance was found guilty of copying proprietary code from Meishe Technology, a Chinese video technology firm, for use in TikTok (Douyin) and other apps. The Supreme People’s Court upheld earlier rulings and significantly increased damages, from the initial 26.7 million yuan (approx. £2.9 million) emphasising the seriousness of IP violations.
This landmark judgment highlights China’s strengthened enforcement of IP laws, signalling a shift toward global standards. For companies entering the Chinese market, it underscores the need for rigorous compliance with local IP regulations.
Implications for UK Partners
1. IP Protection as a Priority: This case demonstrates that IP enforcement in China is becoming more robust. UK businesses must ensure their proprietary technologies are safeguarded through proper registration and legal protections when operating in China.
2. Compliance and Due Diligence: The ruling serves as a reminder to conduct thorough due diligence on local partners and competitors to avoid potential disputes. Robust internal processes are essential to prevent inadvertent IP violations.
3. Opportunities in Innovation: With China focusing on protecting innovation, UK firms with strong R&D capabilities can benefit from partnerships that leverage this legal framework to foster mutual growth.
EFEC’s Support for UK Clients
Excellence First Enterprise Consultancy Ltd (EFEC) is committed to guiding UK businesses through the complexities of entering the Chinese market. Leveraging our expertise in bridging ecosystems, we assist clients in:
• Navigating China’s evolving regulatory landscape.
• Establishing partnerships that align with local compliance standards.
• Safeguarding intellectual property through tailored strategies.
While EFEC is not an IP expert, we collaborate with IP specialists in both the UK and China to support our partners. Through these partnerships, we help UK and Chinese businesses confidently innovate and expand while mitigating risks associated with IP disputes.
Broader context
This ruling comes at a time of increased scrutiny on tech giants globally. In a separate case, Tencent recently won a video copyright infringement lawsuit in a U.S. district court, securing nearly $85 million in compensation. These cases underscore the growing importance of IP protection in the global tech industry.
As the digital landscape continues to evolve, understanding and navigating IP laws in different jurisdictions becomes crucial for businesses operating internationally. The ByteDance case serves as a reminder that even industry leaders must prioritise IP compliance and due diligence in their operations.
Image: courtesy of Visual China （视觉中国）
