China’s Copyright Law: What Foreign Companies Need to Know

Clarifying the attribution of rights and promoting cultural prosperity. The Copyright Law of the People’s Republic of China is an important law that protects the rights and interests of authors of literary, artistic, and scientific works. It grants creators exclusive rights over their works and regulates the use and dissemination of their works, making it a solid cornerstone for stimulating creativity and upholding fairness.

The 2020 revised Copyright Law introduces significant changes to intellectual property (IP) protection in China. For foreign companies, especially those in technology, media, and research and development, these updates present both opportunities and challenges. Understanding the key amendments and their implications is essential for compliance and risk management.

Purpose of the legislation

Copyright is a general term for the rights enjoyed by authors and other copyright holders of literary, artistic, and scientific works over their works in accordance with the Copyright Law.

1. Protecting the rights and interests of creators: safeguarding the personal and property rights of authors over their works by clarifying the attribution of copyright and the content of their rights.
2. Promoting the development of culture, science, and technology: encouraging the creation and dissemination of works beneficial to the construction of socialist spiritual civilization and material civilization and promoting the prosperity of social culture and scientific undertakings.
3. Balancing interests: Protecting the rights and interests of creators while considering the public interest and preventing the abuse of rights.

Core element in the Copyright Law

Copyright is divided into two parts: personal rights and property rights.

1. Personal rights (non-transferable/perpetual protection)
   • Right of Publication (the right to make the work public for the first time)
   • Right of Authorship (right to identify the author)Right of Alteration (to alter or authorize others to modify)
   • Right to protection of the integrity of the work (prohibition of distortion, falsification)
2. Right of property (transferable/protected for a limited period): Economic rights such as reproduction right, distribution right, performance right, information network transmission right, adaptation right, translation right, etc.

Term of protection

1. Works of a natural person:
   • Property rights: lifetime of the author + 50 years after death (art. 23)
   • Habeas corpus: permanent protection
2. Works by legal entity/organization:
   • Property rights: 50 years after first publicationUnpublished: 50 years after the completion of creation

Attribution of rights

1. General principle: the citizen who created the work is the author (art. 11);
2. Works of office: the company has the right to property, but the author retains the right of attribution (exceptions may be contractually agreed upon) (art. 18);
3. Collaborative works: shared copyright, which requires the consent of all to be exercised (art. 14).

Legal Challenges for Foreign Businesses

Risks in Content Localization

Foreign companies adapting media, software, or training materials for the Chinese market often overlook the need for local copyright registration. Without formal registration, enforcing rights in Chinese courts can be difficult.

For example, a European e-learning provider found that its unregistered Chinese translations were widely pirated, but courts dismissed its claims due to insufficient proof of ownership.

Uncertainty Around AI and Collaborative Works

The law does not provide clear guidelines on the ownership of AI-generated content or works co-created by international teams. This ambiguity can lead to disputes, particularly when foreign firms collaborate with Chinese partners. To mitigate risks, companies should define IP ownership explicitly in contracts.

Steps to Ensure Compliance

Prophylactic Protection

1. Register copyrights in China for locally distributed content through the National Copyright Administration (NCAC).
2. Clarify the attribution of rights in the contract (e.g., commissioned work, work in the office)

In case of infringement

1. Fixing evidence (screenshots, screen recordings, notarization);
2. Prioritize administrative complaints (National Copyright Administration) to take down the infringing content at the earliest convenience;
3. claiming “statutory damages” in the lawsuit (the court may decide to award compensation from 500 RMB to 5 million RMB).

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