Entertainment Law Newsletter | Aug 05, 2026

Key Focus

The Cyberspace Administration of China (CAC) has issued a public call for comments on the Anti-Online Bullying Law (Draft for Comment). The draft defines "online bullying" as activities carried out through the internet, either in a concentrated or sustained manner, that infringe upon individuals' or organizations' lawful rights and interests, including the rights to reputation, honor, privacy, portrait, personal information, and others. It also requires that platforms, upon detecting risks of online bullying, must not use algorithmic recommendation to facilitate the spread of relevant content, and shall take measures such as identity verification and traffic restrictions against abnormal accounts
The National Radio and Television Administration (“NRTA”) has deliberated and adopted the Measures for the Development and Administration of Micro-Short Dramas — requiring the establishment of a three-tier classification system for the administration of micro-short dramas, together with filing, review and distribution licensing regimes; imposing primary responsibility on broadcasting platforms in respect of content review, program numbering, identification of AI-generated content and algorithmic recommendation; and specifying compliance requirements for paid services, data security and cross-border micro-short drama projects
The Shijingshan District People’s Court of Beijing has concluded a case concerning inheritance disputes over online game accounts — holding that the property interests attached to the right to use game accounts are, in accordance with law, inheritable, and that real-name authentication does not constitute an obstacle to inheritance; platforms may not, through standard form clauses, exclude the statutory inheritance of users’ property rights and interests, and shall assist in handling changes to real-name authentication information
The Guangzhou Internet Court has concluded a case involving tort liability arising from the use of AI to generate false information — the tortfeasor, at the generation stage, input false reference materials into an AI tool and used prompts likely to amplify the impact of the infringement; at the dissemination stage, he failed to verify the authenticity of the generated content and disseminated false information, thereby constituting an infringement of the right to reputation

News

National Development and Reform Commission: the legislative process for the Artificial Intelligence Law will be accelerated, and efforts will be made to rapidly develop a number of benchmark AI applications
NRTA reports on the governance outcomes of the special campaign on “AI remakes” of videos in July 2026: a total of more than 13,300 non-compliant videos based on classic film and television works such as the Four Great Classical Novels, historical themes, revolutionary themes and heroic role models that were subject to “AI remakes” have been removed, and more than 30 non-compliant accounts have been dealt with
The Central CAC has strictly dealt with a number of non-compliant network entertainment group-broadcast accounts: cracking down on issues such as non-compliant PK activities that stimulate tipping, improper gameplay that induces tipping, vulgar and harmful scene content, and infringement of minors’ rights and interests; it has already guided and urged websites and platforms to strengthen the administration of group-broadcast content, and has, in accordance with laws and platform rules, taken action against more than 1,840 non-compliant network group-broadcast accounts
National Bureau of Statistics: in the first half of 2026, 82,000 large-scale cultural enterprises nationwide achieved operating revenue of RMB 7,202.6 billion, representing a year-on-year increase of 4.6%; among this, content creation and production amounted to RMB 1,683.0 billion, up 4.4%; creative design services amounted to RMB 1,398.7 billion, up 9.2%; and cultural investment and operation amounted to RMB 25.3 billion, up 10.0%
As of 3 August, the total box office (including presales) for the 2026 summer season has exceeded RMB 7.5 billion, and the total annual box office (including presales) has exceeded RMB 23.2 billion, with daily box office exceeding RMB 100 million for 24 consecutive days; the box office of the animated films “Kung Fu Women’s Football” and “Eight Immortals!” has surpassed RMB 1.1 billion
Game Working Committee: from January to June 2026, actual sales revenue of the domestic game market reached RMB 188.45 billion, a year-on-year increase of 12.17%; actual sales revenue of self-developed games in overseas markets reached USD 12.372 billion, a year-on-year increase of 30.22%, with the United States, Japan and South Korea together accounting for 53.84%, remaining the main target markets; as of June, the number of game users nationwide reached 684 million, a year-on-year increase of 0.82%
The 2026 Global Esports Conference was held in Jing’an, Shanghai, at which the Report on China’s Esports Industry from January to June 2026 was released: in the first half of the year, domestic esports industry revenue reached RMB 13.115 billion, a year-on-year increase of 2.78%; Shanghai ranks first nationwide in terms of the number of esports clubs (38) and the scale of offline events
The 23rd China Digital Entertainment Expo & Conference (ChinaJoy) concluded in Shanghai: with the theme “Traveling with AI”, the exhibition covered an area of more than 140,000 square meters and attracted more than 900 enterprises from 35 countries and regions worldwide; total visits over the four days reached 438,900, a year-on-year increase of 6.97%
The Music Copyright Society of China and 10 provincial-level radio and television broadcasting institutions in Hebei, Shanxi, Inner Mongolia, Jilin, Heilongjiang, Shanghai, Shandong, Hubei, Sichuan and Xinjiang have completed a copyright cooperation signing ceremony, which is the broadest in scope and largest in scale copyright signing between the national radio and television industry and an audio-visual collective management organization in the five years since the current Copyright Law came into effect

Key Focus

CAC Publicly Solicits Comments on the Anti-Cyberbullying Law (Draft for Comments)

This Draft for Comments is China’s first specialized legislation specifically regulating cyberbullying, aimed at improving the legal system for combating cyberbullying and achieving comprehensive and source-based governance of cyberbullying. The Draft for Comments comprises seven chapters and sixty articles, and the deadline for public feedback is 28 August 2026. The core points of the Draft for Comments are as follows:

Clarify the definition and scope of application of online bullying (Articles 2 to 4 and Article 59): The Draft defines online bullying as activities carried out through the internet, either in a concentrated or sustained manner, that infringe upon individuals' or organizations' lawful rights and interests, including the rights to reputation, honor, privacy, portrait, personal information, and others. Such activities include releasing in a concentrated manner information such as insults, abusive language, rumor-mongering, defamation, incitement of hatred, intimidation and coercion; illegally releasing personal information of others in a concentrated manner; and persistently carrying out online threats, online harassment, etc. Overseas organizations or individuals that commit online bullying against targets within China shall also be dealt with and held accountable in accordance with the law. Those who, in accordance with the law, report or expose illegal or criminal acts online, or exercise supervision through public opinion, are not subject to the Draft.

Establishing a multi-department coordinated governance mechanism (Articles 6 and 23 to 27): The national cyberspace administration department is responsible for overall coordination of work against cyberbullying, while the public security, education, telecommunications, civil affairs, culture and tourism, health, and radio and television departments carry out supervision in accordance with their respective duties, and the people’s courts and people’s procuratorates perform adjudicatory and prosecutorial functions in accordance with law.

Imposing full-process governance responsibilities on online platforms (Articles 11 to 22): Network service providers shall establish systems for user registration, account management, information review, monitoring and early warning, identification and handling, and complaints and reports. When providing information publishing, instant messaging and other services, platforms shall verify users’ real identity information; upon discovering cyberbullying risks, they must not push related information through algorithmic recommendation, and shall conduct dynamic identity verification of abnormal accounts and adopt measures such as risk alerts, traffic restrictions and suspension of updates. Upon discovering cyberbullying information, platforms shall immediately cease transmission and adopt measures such as deletion, blocking, disconnection of links, restriction of account functions and profit-making permissions, and account closure.

Improving user protection, evidence collection and appeal mechanisms (Articles 14 and 17 to 22): Platforms shall provide users with protection options such as blocking specific users and prohibiting reposts or comments, and shall promptly issue alerts and provide protection when users face cyberbullying risks. Platforms shall also provide fast-track evidence collection functions for cyberbullying in prominent positions, preserve relevant information and dissemination data, and establish rumor-refutation mechanisms, account classification and grading management systems, and channels for appeals against account handling. Platforms with a large number of users or significant influence shall also establish rapid response mechanisms.

Strengthening governance of artificial intelligence and traffic manipulation (Articles 13 and 31): Platforms shall strengthen monitoring and governance of the use of artificial intelligence technologies to produce and disseminate cyberbullying information, implement mechanisms for labeling generated and synthetic content and for information traceability, promptly adopt measures upon discovering risks and report to competent authorities. No organization or individual may use technologies such as generated and synthetic content or personalized recommendation to carry out cyberbullying, nor may they manufacture or amplify cyberbullying through batch account registration, manipulation of rankings and trending lists, fake clicks, traffic fraud, or exploiting and hyping hot topics.

Regulating public accounts, MCNs and other support services (Articles 32 to 34): Public accounts with significant influence may not use their influence to carry out, organize or incite cyberbullying, and shall strengthen management of content in comment sections and groups. Multi-channel network (MCN) agencies and other multi-channel distribution institutions, upon discovering that contracted accounts are engaging in cyberbullying, shall adopt measures such as issuing warnings, requiring rectification, suspending profit-making permissions or terminating agreements. Any organization or individual who is aware that others are engaging in cyberbullying may not provide support or assistance such as technical support, traffic and funding, advertising promotion, payment settlement, personal information, SIM cards or internet accounts.

Strengthening protection of minors and other key groups (Articles 14, 28, 29, 35 and 36): Platforms shall provide relevant services through minors’ modes and adopt key protection measures against cyberbullying risks involving minors, the elderly, persons with disabilities and other groups. Schools, upon discovering that minor students are suffering from or engaging in cyberbullying, shall promptly stop such acts, adopt preventive measures, carry out psychological crisis intervention and notify guardians. Platforms shall give priority to accepting and handling complaints and reports involving minors, persons with disabilities and other groups.

Improving judicial protection and relief mechanisms for victims (Articles 37 to 46): Where cyberbullying may cause irreparable harm to personality rights, the parties concerned may apply to a primary people’s court for an injunction against infringement of personality rights; guardians, close relatives, schools and relevant mass organizations that meet the conditions may apply on their behalf. Public security organs shall promptly conduct investigation and evidence collection and initiate criminal investigations; in trying private prosecution cases, people’s courts may request public security organs to assist in evidence collection. For crimes of insult and defamation that seriously endanger social order and national interests, people’s procuratorates shall institute public prosecutions in accordance with law; where national interests or social public interests are harmed and the circumstances are serious, public interest litigation may also be instituted in accordance with law.

Establishing a tiered and categorized system of legal liability (Articles 47 to 58): The Draft for Comments provides for penalties such as warnings, orders to make corrections, confiscation of illegal gains, fines, suspension of business, suspension of business for rectification, closure of websites or apps, revocation of permits or business licenses, account closure and restriction of profit-making permissions, depending on the different illegal actors and acts. Where illegal acts of platforms cause particularly serious impact or consequences, a maximum fine of RMB 10 million may be imposed; for acts such as engaging in or assisting in traffic manipulation or misuse of personal information, a maximum fine of RMB 2 million may be imposed. Platforms that know or should have known that users are engaging in cyberbullying but fail to promptly take necessary measures shall bear joint and several liability in accordance with law; where the personal rights and interests of natural persons are infringed and serious mental harm is caused, victims are entitled to claim compensation for mental damages.

Source: CAC China

NRTA Deliberates and Adopts the Measures for the Development and Administration of Micro-Short Dramas

The NRTA has promulgated the Measures for the Development and Administration of Micro-Short Dramas (the “Measures”) by Order No. 16. The Measures were deliberated and adopted at the NRTA executive meeting on 27 July 2026 and will come into force on 1 September 2026. The core points of the Measures are as follows:

Clarifying the definition of micro-short dramas and their cross-channel scope of application (Article 2): The Measures define micro-short dramas as series with a duration of less than 20 minutes per episode, with a clear main theme, continuous and complete storyline, and prominent characters. The scope of application covers broadcasting channels such as internet websites, apps and distribution platforms, radio and television channels and dedicated zones, internet television, IPTV and cable television, as well as receiving terminals such as televisions, mobile phones, tablets, computers, public electronic screens, smart wearables and in-vehicle devices.

Establishing a “three-tier classification” management mechanism (Article 5): Micro-short dramas are categorized into Category I, Category II and Category III based on investment amount and subject matter. Category I micro-short dramas include works with relatively large investment amounts or whose main plots involve special subject matters such as politics, military affairs, foreign affairs, national security, united front work, ethnicity, religion, justice and public security; Category II comprises works with relatively smaller investment amounts and general subject matters; Category III comprises works with low investment amounts and general subject matters.

Strengthening requirements for filing and disclosure, content review and distribution licensing (Articles 12 to 24): Category I micro-short dramas shall apply for filing and public disclosure prior to shooting and production, and shooting and production of Category II micro-short dramas may refer to and apply the filing and public disclosure regime for Category I micro-short dramas. Prior to broadcast, both Category I and Category II micro-short dramas must apply for content review and distribution licensing: Category I micro-short dramas, upon passing review, shall obtain a Micro-Short Drama Distribution License, and Category II micro-short dramas shall obtain approval documents; Category III micro-short dramas shall be subject to pre-broadcast review by qualified broadcasting entities, which shall assign program numbers. Micro-short dramas that have not obtained the corresponding license or approval document, or that have not been reviewed by broadcasting entities and assigned program numbers, may not be broadcast or participate in awards or commendations.

Systematically delineating content red lines for micro-short dramas (Article 25): The Measures list content that micro-short dramas may not contain, including content that endangers national security or national unity, undermines ethnic unity, distorts history, infringes minors’ rights and interests, insults or defames others or disseminates others’ privacy, promotes obscenity, gambling or drug use, worship of money, extravagance or discrimination, disseminates false information, sensationalizes violence or terrorism, or abets crime or teaches criminal methods. The production, promotion and broadcasting stages shall all use these content red lines as the basis for review.

Regulating language and script, information labeling, attribution and promotional content (Articles 26 to 28): The titles, lines and subtitles of micro-short dramas shall comply with national standards for the common spoken and written language; dialects may be used where genuinely required for artistic purposes, and Chinese subtitles shall be added for foreign song lyrics, foreign titles and lines, and foreign words and logos with specific meanings. At the beginning of each episode, the title of the drama, license number, approval document number or program number shall be prominently indicated, either presented separately or integrated into the plot. Promotional information shall be compatible with the content of the main feature and may not contain prohibited content or violate language and script norms.

Imposing content review and full-process management responsibilities on broadcasting platforms (Articles 29 to 33, 35, 36 and 38): Broadcasting entities shall lawfully obtain qualifications for radio and television or online audiovisual program services, and shall establish editor-in-chief content responsibility systems, review and gatekeeping mechanisms, and full-process content safety responsibility traceability mechanisms. Prior to broadcasting Category I and Category II micro-short dramas, platforms shall verify the Micro-Short Drama Distribution License or approval documents; for Category III micro-short dramas, platforms shall complete pre-broadcast review, assign program numbers for their own platforms, and submit relevant information to radio and television authorities via online systems. For non-exclusive Category III micro-short dramas, each broadcasting entity shall assign its own program number based on its respective reviewed version and may not use program numbers of other broadcasting entities.

Strengthening administration of AI-generated content and algorithmic recommendation (Articles 34 and 37): For micro-short dramas generated or produced using artificial intelligence technologies, production institutions and broadcasting entities shall add prompt labels in prominent positions in each episode. Broadcasting entities shall also regularly review, assess and verify algorithmic mechanisms, models, data and application results, give priority to recommending high-quality micro-short dramas, and may not use algorithmic models that induce users to become addicted or to over-consume.

Strengthening consumer protection and data compliance (Articles 39 and 40): Broadcasting entities shall perform data security protection obligations in accordance with law, enter into user agreements with registered platform users and clarify the rights and obligations of both parties; where paid content is provided, they shall clearly inform users of fee-related information and protect consumers’ lawful rights and interests in accordance with law.

Clarifying administration requirements for cross-border micro-short drama projects (Article 52): Sino-foreign co-produced micro-short dramas and imported overseas micro-short dramas shall comply with relevant provisions of the State Council’s radio and television authority; micro-short dramas shot within China but intended for broadcast overseas shall also be subject to the filing and public disclosure and review and licensing provisions of the Measures.

Improving legal liability for illegal acts (Articles 44 to 49): For acts such as unauthorized broadcasting of micro-short dramas; producing, promoting or broadcasting micro-short dramas containing prohibited content; failing to produce in accordance with filed content; failing to broadcast in accordance with licensed content; transferring works for review; and concealing facts, providing false materials or data, or refusing to provide materials or data, competent authorities may, in accordance with law, adopt measures such as orders to make corrections, warnings, public criticism, suspension of content updates and fines; where circumstances are serious, further penalties may be imposed pursuant to the Regulations on the Administration of Radio and Television. Administrative licenses obtained by improper means such as fraud or bribery shall be revoked.

Source: NRTA

Beijing Shijingshan District People’s Court Concludes Case Involving Inheritance Dispute over Online Game Accounts

The plaintiff, Ms. Chen, is the mother of Mr. Gu. During his lifetime, Gu registered and continuously developed 87 real-name authenticated accounts in an online game operated by the defendant game company, investing substantial time, effort and money, with the relevant accounts and virtual property under them having corresponding property value. In May 2025, Gu passed away due to illness. Chen sought to inherit the right to use the above 87 game accounts to supplement her living expenses. The game company argued that, under the user agreement, ownership of game accounts and virtual items under the accounts belongs to the platform, and users only enjoy limited rights of use; at the same time, game accounts have certain personal attributes and are not suitable to be included within the scope of inheritable estate. As the parties failed to reach agreement on changing the real-name authentication information, Chen brought an action before the Shijingshan District People’s Court of Beijing, requesting an order that the game company assist her in inheriting the right to use the accounts in dispute and change the real-name authentication information to her name. During the proceedings, another statutory heir of Gu submitted a written statement waiving inheritance of the game accounts in dispute.

Upon trial, the Shijingshan District People’s Court of Beijing held that the game accounts in dispute, character data, virtual props, equipment and game currency all exist in the form of network data and have corresponding property value, and therefore constitute online virtual property under the law. Under the user agreement, ownership of account identifiers, back-end data, virtual items and derivative data belongs to the game company, while users, subject to compliance with the agreement, enjoy limited rights of use. This right of use has both personal and property attributes, but is centered on property interests and has use value and transfer value.

The court further pointed out that, although the accounts in dispute have certain personal linkage due to real-name authentication, real-name authentication is primarily a means by which the platform manages user identity, and does not mean that the right to use the accounts is a right exclusively belonging to Gu, with personal attachment and non-transferability. The law does not prohibit inheritance of the right to use game accounts, and the user agreement in dispute does not exclude inheritance of account use rights by heirs upon the death of a natural person. During the proceedings, both parties also acknowledged that the right to use game accounts under the user agreement may be inherited by heirs. After other heirs expressly waived inheritance, Chen became the sole statutory heir to the right to use the accounts in dispute.

Therefore, where the decedent has already died, the lawful heir’s identity is clear, and there are no statutory or contractual obstacles to account transfer or change of real-name authentication information, the game company, as platform operator, is obligated to assist in changing the real-name authentication information and ensure that the heir can normally exercise the right to use the accounts. Ultimately, the court confirmed that the right to use the 87 game accounts under Gu’s name is inherited by Chen, and ordered the game company to assist Chen in completing the procedures for changing the real-name authentication information of the relevant accounts within fifteen days after the judgment takes effect. Neither party appealed, and the judgment has now become effective.

Source: Jingfa Wangshi

Guangzhou Internet Court Concludes Case Involving Network Tort Liability Arising from Use of AI to Generate False Information

The plaintiff, an investment company, is a listed private enterprise. The defendant, Mr. Cao, input a 1,700-character document into an artificial intelligence tool and instructed the AI to generate a 10,000-character in-depth article, fabricating allegations that the plaintiff engaged in unlawful acts such as inflating profits and falsifying financial data, with the negative statements lacking any objective informational basis. Cao published the article in dispute on a finance-focused WeChat public account he operated, labeling it as “original”, which attracted extensive readership. The plaintiff claimed that the article was seriously inaccurate and infringed its right to reputation, and brought an action before the court.

Upon trial, the Guangzhou Internet Court held that the content of the article in dispute accusing the plaintiff of financial fraud and profit inflation lacked factual basis and constituted false information. At the content generation stage, Cao deliberately guided the AI to generate untrue negative content by inputting materials and setting biased prompts; at the dissemination stage, he failed to verify the authenticity of the article’s content and did not perform his obligation to label AI-generated synthetic content in accordance with law, falsely labeling the article as original and misleading the public, thereby manifestly at fault. The court ultimately found in accordance with law that Cao’s conduct constituted an infringement of the plaintiff’s right to reputation, and ordered him to apologize to the plaintiff and compensate the plaintiff for economic losses and reasonable expenses incurred in safeguarding its rights.

Source: China Intellectual Property News