With the development of artificial intelligence technology, AI-generated works and related copyright issues have attracted increasing attention. On the afternoon of November 3rd, the Jinshan District People's Court of Shanghai announced a highly anticipated case: this case is known as the first AI large model copyright infringement case in Shanghai. The court ruled that the defendant must stop infringing on the plaintiff company's rights related to the character Medusa in the "Doubloons" series of anime.
The case originated from the defendant Li using a certain platform to extract multiple images of the Medusa character from "Doubloons," and then created a picture pack. He subsequently used the platform's "train LoRA" function to generate two new Medusa LoRA models. These models allowed other users to generate images similar to the Medusa character by inputting different prompts. The plaintiff company believed that Li's actions not only infringed their right of reproduction and adaptation, but also involved unfair competition.

The plaintiff's request includes asking the defendant to stop the infringement, issue a statement to eliminate the impact, and claim compensation for 2 million yuan in economic losses and litigation costs. However, the defendant argued that the term "Medusa" was not his original creation, and as a platform provider, they should not bear the responsibility of infringement, because they had taken measures to remove the suspected infringing models and promptly notified the relevant overseas AI platforms.
After the trial, the court considered that the term "Medusa" has multiple meanings in different cultures and does not have unique trademark protection. Finally, the court ruled that Li should stop the infringement and compensate the plaintiff company 30,000 yuan in economic losses and 20,000 yuan in litigation expenses, and rejected the other requests of the plaintiff. This judgment not only involves the handling of the specific case, but also provides important legal basis for future AI creation and copyright protection.
