Core Viewpoint - The case marks the first ruling in Shanghai regarding copyright infringement involving AI large models, highlighting the growing legal challenges in the intersection of AI technology and intellectual property rights [1][2]. Group 1: Case Details - The plaintiff, the copyright holder of the character Medusa from the popular IP "Dou Po Cang Qiong," accused the defendant of copyright infringement for using images of Medusa to train an AI model [2][4]. - The defendant, a company operating an AI image generation platform, claimed that their technology promotes AI development and does not constitute infringement, asserting they took necessary actions to address the issue [4][5]. - The court ruled that the defendant must cease infringement and pay a total of 50,000 yuan (approximately 7,000 USD) in damages and legal costs to the plaintiff [4][5]. Group 2: Industry Implications - The ruling reflects a broader trend of increasing copyright disputes related to AI-generated content, as many users are feeding copyrighted material into AI models without authorization [6][8]. - Major entertainment companies, including Hollywood agencies and Japanese publishers, have begun to take legal action against AI companies like OpenAI for unauthorized use of their intellectual properties [8][9][12]. - The traditional copyright system faces significant challenges as AI technology evolves, leading to systemic risks in copyright infringement that require new governance frameworks [12].