[Significance]

Driven by user demand and technological innovation, Internet content platforms with abundant forms of communication and creative industries such as short video and stream have developed rapidly, which leads to a sharp growth of intellectual property disputes and increased difficulty in legal protection. This case clarified that a network company with the main business of webcast when enjoying the intellectual property rights and business interests of the webcast works of the streamer who has contracted with the company shall bear the corresponding tort compensation liability if the streamer plays the music of others without authorization. The case helps standardize the relationships among all parties in the content payment business model, and reasonably defines the responsibilities and obligations of the Internet content platform.

[Case Summary]

On February 14, 2018, Feng Timo, the streamer contracted with Douyu Network Technology Co., Ltd. (“Douyu”) conducted online live broadcasting on the platform operated by Douyu. Users of the live broadcasting platform can buy virtual currency and gifts as gratuity. During the broadcast, Feng Timo played the song “Lovers Heart”, which lasted about one minute and ten seconds. After the live broadcast, the streamer made the live broadcast process into a video and saved it on the live broadcast platform for the audience to replay and share. The plaintiff Music Copyright Society of China, as the organization authorized by the songwriter of “Lovers Heart” to exercise copyright to the song, stated that the above behaviors of Douyu and the streamer violated the right of Music Copyright Society of China to disseminate the song over internet, and requested the court to order the defendant to compensate the copyright fee of RMB 30,000 Yuan and the reasonable expenses of RMB 12,600 Yuan including attorney fees, notarial cost and other fees.

[Decision]

The court held that the webcast platform had agreed with the contracted streamer that the platform shall own the intellectual property rights of the audio and video works produced through live broadcast, and the platform makes profits from the virtual gratuity of the streamer given by the users who watch live programs online and play back live videos. Therefore, the live broadcast platform is not only its service provider but also the owner and beneficiary of audio and video works thereon. For the infringement of copyright, the obligation of the platform is not only limited in the “notice and action” obligations but also extended to higher attention paid to the content of the live broadcast and video. The platform bears the corresponding compensation liability for the infringement occurred in the production and dissemination of live broadcast programs and videos on the platform in addition to the “notification and deletion” obligations. Beijing Internet Court ordered the defendant Douyu to compensate the plaintiff, Music Copyright Society of China, for the economic losses of RMB 2,000 Yuan and the reasonable expenses of RMB 3,200 Yuan. Douyu appealed to Beijing Intellectual Property Court, which made the final judgment that rejected the appeal and affirmed the original judgment.