A major milestone in the world of VR and XR has been reached with a landmark court ruling in China. MiHoYo, the renowned developer behind the hit game Genshin Impact, has secured a significant victory after a Shanghai court ordered an unnamed generative AI developer to pay out ¥750,000 (approximately $112,000) for using AI-generated voice packs of 63 characters from the game without permission.
The ruling is significant not only because of the hefty payout but also as it sets a precedent in China’s courts regarding the use of AI technology and its implications on intellectual property rights. MiHoYo accused the defendant of not only recreating the voices of their beloved characters using generative AI but also using images and story animations from the game to advertise and sell these illicit voice packs to customers.
This blatant exploitation of Genshin Impact’s popularity was deemed by the court as an attempt to capitalize on the game’s immense success. The defendant, who chose not to reveal its identity, was ordered to cease distributing the assets and pay damages to MiHoYo. A brief appeal was made, but it seems the unnamed company has since withdrawn its appeal.
This ruling offers crucial insight into how Chinese courts will assess the use of generative AI in replicating copyrighted material like video game characters’ likenesses. As VR and XR technology continues to advance at an unprecedented pace, concerns about the misuse of generative AI have been growing. The ability for third-party companies to create tools that allow users to recreate copyrighted material without permission or compensation has raised eyebrows.
Interestingly, this ruling focuses on the use of generative AI to replicate and sell copyrighted material, rather than addressing the still-uncertain territory of sourcing copyrighted content as training data for AI tools. For developers working in China, this decision serves as a warning about the importance of protecting their intellectual property rights in an increasingly AI-driven industry.
The growing trend of using AI-generated voices, images, and other assets has opened up new creative possibilities but also risks undermining the value of original work. This court ruling highlights the need for more stringent regulations and laws to ensure that creators are fairly compensated for their work and that their IP is safeguarded.
As VR and XR technology continues to push boundaries, it’s essential to address these concerns and establish clear guidelines for the responsible use of generative AI in the creative industry. With this landmark ruling, we can expect a more nuanced discussion about AI-generated content and its implications on the world of gaming and beyond.
Source: Game Developer XR — 2026-09-18