Photo Source: caixin
Chinese short video giant Kuaishou has been ordered to pay a total of 89.1 million yuan in damages to Tencent for the unauthorized distribution of two of its most popular productions, Deyun Laughter Club and Lost You Forever.
The final judgments, issued by the Guangdong and Chongqing High People’s Courts, have drawn widespread attention within China’s intellectual property and internet sectors, not only for the size of the compensation but also for the legal reasoning underpinning the rulings.
The courts found that users on Kuaishou’s platform had repeatedly edited and reposted copyrighted content from the two shows, in many cases uploading infringing clips concurrently with the official broadcasts. These clips were widely disseminated, often algorithmically recommended, and in some cases monetized through advertising. In particular, the court noted that infringing videos related to Lost You Forever garnered over 8.6 billion views, underscoring the scale and commercial value of the violation.
Tencent stated that it had made multiple attempts to resolve the situation through direct communication with Kuaishou, but those efforts failed to produce meaningful results. With the platform continuing to host and profit from unauthorized content, Tencent turned to litigation to enforce its rights.
In the initial trials, the courts confirmed that infringement had occurred, but the damages awarded were significantly lower than Tencent had sought. On appeal, the higher courts reassessed the circumstances and issued a final ruling that Kuaishou must pay 60 million yuan for Deyun Laughter Club and 29.1 million yuan for Lost You Forever.
What makes the rulings particularly consequential is the courts’ articulation of platform liability. Kuaishou argued that it merely provided information storage services and should not be held directly accountable for content uploaded by users. However, the courts rejected this position, holding that a platform of Kuaishou’s scale and technological sophistication bears a heightened responsibility. They determined that the company had knowledge—or at least should have had knowledge—of the widespread infringement occurring on its platform, yet failed to take sufficient action to stop it. The judgments classified Kuaishou’s conduct as contributory infringement, citing the company’s failure to fulfill its duty of care and prevent the systematic spread of unauthorized content.
The decisions also signal a broader shift in Chinese judicial thinking, moving away from the traditional “safe harbor” model based on passive compliance with takedown notices. Instead, the courts introduced a more proactive standard: platforms are now expected to implement preventive measures such as content filtering and automated blocking, especially when they possess the technical capacity to do so. This interpretation reflects an evolving legal framework in China that holds digital platforms to stricter obligations in copyright governance.
Another key point of contention in the cases was the calculation of damages. Tencent based its claims on both actual losses—such as reduced subscription and advertising revenue—and Kuaishou’s unlawful gains from the infringing content. Kuaishou contested these calculations, arguing that Tencent’s evidence was insufficient. The courts ultimately applied a holistic analysis, considering the commercial impact, audience reach, duration of infringement, and Kuaishou’s level of fault. Citing provisions in China’s revised Copyright Law that allow for punitive damages in cases of malicious or repeated infringement, the courts applied a one-time punitive multiplier to determine the final compensation.
The rulings are part of a growing trend of judicial support for rights holders in China’s digital content ecosystem. In recent years, several high-profile cases have resulted in large-scale penalties against infringing platforms. For example, Douyin (Chinese version of TikTok) was ordered to pay over 32 million yuan to Tencent for violating the rights to Mojin: The Worm Valley, while iQIYI secured a 30 million yuan judgment over the unauthorized distribution of The Knockout by another short video platform operator. These outcomes signal a clear warning: platforms that ignore—or exploit—copyright violations for commercial gain will increasingly face significant legal and financial consequences.
