A Shanghai court has ordered a technology company to pay CNY750,000 (US$111,979) in damages. The court found that the company used artificial intelligence (AI) to replicate Genshin Impact character voices without permission.
The case marks Shanghai’s first unfair competition case involving AI-generated voice imitation.
The Pudong New Area People’s Court issued the ruling last week. According to Chinese news outlet The Paper, the company sold AI-generated voice packs and used Genshin Impact artwork to promote its software.
The court found that these actions infringed copyright and amounted to unfair competition.
AI voice clones
Shanghai miHoYo Shadow Iron Technology Co, Ltd filed the lawsuit. The company operates Genshin Impact in China.
The defendant is a Shanghai-based information technology company. It operates software that can change users’ voices with AI.
According to The Paper, the company used AI voice-processing technology to reproduce the voices of 63 Genshin Impact characters.
It then sold those voices as downloadable voice resource packs. Users could purchase the packs and change their voices during real-time chats.
The company also used Genshin Impact character images in its marketing. Its promotions included story animations, adapted character avatars and original dialogue audio.
The company did not have permission to use that material, according to the court.
Court ruling
The court found that Genshin Impact character designs qualify as works of art under copyright law.
It also classified the game’s continuous gameplay visuals as audiovisual works.
The court also examined the characters’ voices. After years of commercial use, those voices became recognisable identifiers linked to Genshin Impact.
The defendant reproduced those voices with AI. It also combined them with character images and original audio.
As a result, consumers could believe that the voice packs had an official connection with miHoYo. The court therefore found that the company had engaged in unfair competition.
The software offered more than 500 voice packs. However, the court did not use the company’s total revenue to calculate damages.
Instead, it based the compensation on revenue from the infringing voice packs.
Limits of AI use
The first-instance judgment came on June 30. The court ordered the defendant to stop the infringing activities immediately.
It also ordered the company to pay CNY750,000 for economic losses and rights protection costs.
The defendant initially appealed the decision. However, it later withdrew the appeal. The ruling then took effect.
The Pudong court said the case helps define legal boundaries for commercial AI voice imitation.
The ruling recognises voices of well-known game characters as commercially protected identifiers under China’s Anti-Unfair Competition Law.
At the same time, the court said businesses can still use basic vocal characteristics. It stressed the need for AI companies to develop their own technology and creative approaches.
The court said the decision aims to balance intellectual property protection with technological innovation.
READ NEXT: PLAVE shifts gears with cyber F1-themed comeback ‘HYPERDRIVE’
