AI Hallucination

Nanjing Intermediate Court: False AI-Generated Statement that a Lawyer Was Sentenced to Three Years’ Imprisonment Constituted Defamation (Judgment of March 12, 2026)

This case is one of the early Chinese cases involving reputational harm caused by AI-generated search answers and further illustrates the developing judicial approach toward AI hallucination disputes in China.

Nanjing Intermediate Court: False AI-Generated Statement that a Lawyer Was Sentenced to Three Years’ Imprisonment Constituted Defamation (Judgment of March 12, 2026) More »

China IP & AI Quarterly Update — Q1 2026: Key Trends and Practical Considerations

Executive Takeaways: China continues strengthening scrutiny over trademark filings, misleading branding practices, and trademark enforcement; Businesses operating in AI, software, robotics, SaaS, and digital services sectors should reassess trademark coverage under the updated Nice Classification system.

China IP & AI Quarterly Update — Q1 2026: Key Trends and Practical Considerations More »

Hangzhou Binjiang Court: Failure to Review and Clearly Label AI-Generated Content Constitutes Unfair Competition (Judgment of December 3, 2025)

For individual users publishing AI-generated content: No “AI-Generated” Defense: Users cannot rely on AI authorship alone to avoid liability. Affirmative Duties Recognized: Users have enforceable obligations to verify content accuracy and provide conspicuous labeling.

Hangzhou Binjiang Court: Failure to Review and Clearly Label AI-Generated Content Constitutes Unfair Competition (Judgment of December 3, 2025) More »

Shanghai Pudong Court Issues First Judgment Defining Liability Boundaries for User-Induced AI Hallucinations (Judgment issued on October 31, 2025)

Editor’s Note: This case is notable because it shows how courts are beginning to deal with AI “hallucinations” in real commercial settings. Instead of looking only at what the AI said, the Shanghai Pudong Court paid close attention to how the conversation happened, what the user repeatedly asked, and what safeguards the platform had in place. The decision makes clear that when misleading AI outputs are driven by strategic user prompting, and the model provider has acted reasonably, courts may be reluctant to impose liability—offering practical guidance for AI platforms, brand owners, and their counsel.

Shanghai Pudong Court Issues First Judgment Defining Liability Boundaries for User-Induced AI Hallucinations (Judgment issued on October 31, 2025) More »

Hangzhou Internet Court: Application of the Fault-Based Liability Principle to AI “Hallucination” Infringement (Judgment on December 3, 2025)

Editor’s Note: “AI hallucination” refers to situations where generative AI produces information that is factually incorrect, fabricated, or otherwise unreliable. This case is China’s first court decision addressing civil liability arising from AI hallucinations.

Hangzhou Internet Court: Application of the Fault-Based Liability Principle to AI “Hallucination” Infringement (Judgment on December 3, 2025) More »

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