In recent days, in an effort to enhance legal awareness and further stimulate innovation and creativity within the film industry, the Supreme People's Court has released eight "Model Cases of Film Intellectual Property Protection".

Among these cases, the dispute handled by Llinks involving Zhejiang Shenge Network Technology Co., Ltd. v. Legendary IP Co., Ltd., over a copyright non-infringement confirmation dispute has been successfully selected. This case, which went through the first instance and appeal, concluded in a victory for Llinks's client. The court not only supported the client's request for a non-infringement confirmation but also ordered the defendant to bear the client's reasonable legal expenses, amounting to 200,000 RMB.

This case represents the first nationwide case of confirming non-infringement of audiovisual images in films and games. In its judgment, the court determined that when protecting games using audiovisual works, the boundaries of copyright should focus on "visual elements". The scope of copyright protection should be limited to continuous dynamic images themselves or their combinations, as well as the visual effects that display the storyline. This case clarified the approach to comparing whether there is infringement between the overall visual elements of a video game and a film work, providing strong guidance for similar cases.

Attachment: "Typical Cases for the Protection of Film Intellectual Property" by the Supreme People's Court (Case No. 6)

Case Overview

The South Korean game "Legend of Mir" was launched in China in 2001. The right holder, Legendary IP Co., Ltd. (hereinafter referred to as Legendary IP), learned that the film "Blue Moon" was about to be exclusively broadcast on online platform. Legendary IP believed that this film infringed the game's copyright and sent a letter to the platform demanding the cessation of the film's distribution. The film's production company sent a legal notice to Legendary IP but received no withdrawal of the warning or legal action. After the film went online, Zhejiang Shenghe Network Technology Co., Ltd., as the film's copyright owner, sued in court, requesting a confirmation of non-infringement, based on the argument that the film did not infringe the game's copyright.

Judgment

Hangzhou Internet Court, after deliberation, concluded that the overall visual elements of the game and the film involved in the case were significantly different in terms of visual composition, screen smoothness, lens experience, and audiovisual effects. There were substantial differences in the specific creative elements selected, arranged, and presented in the audiovisual images. Therefore, the court confirmed the film's non-infringement. Legendary IP appealed the decision, but the Intermediate People's Court of Hangzhou City of Zhejiang Province upheld the original judgment.

Significance

The judgment in this case clarified the approach to comparing whether there is infringement between the overall visual elements of a video game and a film work. It stated that in later creative works, if there is only a reference or absorption of earlier works' themes or concepts, but the specific expressions diverge or differ from the earlier works, it does not constitute infringement. This judgment is beneficial for guiding the development and prosperity of the cultural and creative industries in various formats, promoting high-quality fusion and development within the cultural industry.

Click here to view the judgment.