China AI Compliance: How to meet new labeling rules for AIGC

What are the main types of intellectual property rights in China?

China protects trademarks, patents, designs, copyrights, and trade secrets through a mix of registration-based and automatic rights. For serious commercial activity in China, you almost always need local registrations, because foreign registrations do not automatically protect you inside China.

Core IP categories and legal bases

• Trademarks - protected under the Trademark Law of the PRC; administered by the China National Intellectual Property Administration (CNIPA).
• Invention, utility model, and design patents - protected under the Patent Law of the PRC; administered by CNIPA.
• Copyright - protected under the Copyright Law of the PRC; supervised by the National Copyright Administration of China (NCAC).
• Trade secrets and certain know-how - protected under the Anti-Unfair Competition Law and the Civil Code.
• Domain names and online identifiers - protected through domain name rules and, in practice, via trademark and unfair competition law.

Registration versus automatic protection

• Registration required or strongly recommended:
  • Trademarks (China is a first-to-file system; whoever registers first usually wins).
  • Patents (inventions, utility models, and designs).
  • Integrated circuit layout designs and plant varieties (niche but important for some industries).
• Automatic, but recordal is helpful:
  • Copyright arises automatically when a work is created and fixed, but voluntary recordal with NCAC or local copyright offices strengthens enforcement.
  • Trade secrets do not require registration but need documented confidentiality measures to be enforceable.

Typical protection scope and terms in China

How do you register and maintain IP rights in China?

You register IP in China by filing separate applications with Chinese authorities, usually through a local agent, and then keeping rights alive through timely renewals, use, and recordal of changes. China applies strict first-to-file and deadline rules, so front-loading your filing strategy and localizing specifications to the China market is critical.

Step-by-step: trademark registration

1. Pre-filing clearance search
   • Search CNIPA database (in Chinese and Latin script) for identical or similar marks.
   • Check for existing Chinese-language brand variants that consumers may associate with your brand.
2. Prepare filing strategy
   • Choose classes and subclasses under the Chinese sub-classification system.
   • Decide whether to register English/foreign mark, Chinese-character mark, and logo separately.
3. File application
   • File directly with CNIPA or via Madrid System designating China.
   • Use a Chinese trademark agency if you do not have a Chinese entity.
4. Examination and publication
   • CNIPA conducts formality and substantive examination.
   • If approved, the mark is published for a 3-month opposition period.
5. Registration and maintenance
   • Absent opposition, CNIPA issues a registration certificate.
   • Renew every 10 years and keep proof of use in China to defend against non-use cancellation after 3 years from registration.

Step-by-step: patent protection

1. Decide type of protection
   • Invention patent for new technical solutions with higher inventiveness.
   • Utility model for products with shape/structure improvements and quicker, cheaper protection.
   • Design patent for product appearance.
2. File application
   • File directly with CNIPA, or enter China via the PCT route within 30 months (generally) of priority.
   • Ensure translation into high-quality Chinese; translation errors are a frequent enforcement problem.
3. Examination
   • Invention patents require a separate request for substantive examination within 3 years from filing.
   • Utility models and designs go through a more limited examination, then grant.
4. Maintenance
   • Pay annual maintenance fees; non-payment leads to lapse.
   • Monitor for conflicting filings and potential infringers in the Chinese market.

Indicative official fees in China (government fees only)

How is AI-generated content treated under Chinese IP and digital regulations?

AI-generated content in China sits at the intersection of traditional IP law and newer digital regulation, especially rules from the Cyberspace Administration of China (CAC). Regulators focus less on ownership questions and more on safety, labeling, and accountability for AI content that reaches Chinese users.

IP ownership backdrop

• Chinese Copyright Law still centers on human authorship and originality; pure machine-generated output without meaningful human creative input sits in a gray zone.
• In practice, businesses usually handle AI content ownership by contract:
  • Allocating rights between company and vendors or platforms.
  • Clarifying whether employees assign rights in prompts, training data selection, and edits.
• For commercial use, particularly in China, companies typically:
  • Avoid relying exclusively on AI output if originality and enforceable copyright are critical.
  • Have humans meaningfully edit, curate, or combine outputs to strengthen copyright claims.

Regulatory framework around AI content

• Provisions on the Administration of Deep Synthesis Internet Information Services (effective 2023)
  • Target content that uses algorithms to generate or edit text, images, audio, or video at scale.
  • Require labeling of deep synthesis content in many cases, as well as security assessments and record keeping.
• Interim Measures for the Management of Generative AI Services (2023)
  • Regulate providers of generative AI available to the public in China.
  • Require content moderation, training data diligence, and certain transparency and security obligations.
• Measures for the Labeling of AI-Generated Content (coming into full force in September 2025)
  • Focus specifically on how AI-generated or AI-edited content must be marked for end users and regulators.
  • Apply to both content creators and content distribution platforms, including for marketing and customer interactions.

Why this matters for IP strategy

• Labeling and traceability do not themselves create or destroy IP rights, but they:
  • Signal to regulators that you are compliant with digital rules, reducing enforcement risk.
  • Help you prove chain of creation, which supports trade secret protection and contract enforcement.
• Failure to manage AI content labeling can:
  • Jeopardize China-facing marketing campaigns or platform access.
  • Undermine the value of your brands and creative assets in enforcement or M&A due diligence.

What are the "Measures for the Labeling of AI-Generated Content" in China?

The "Measures for the Labeling of AI-Generated Content" are a specialized set of rules that make AI content labeling a standalone legal duty in China from September 2025. They clarify who must label AI content, how labeling should work in practice, and what consequences follow if you fail to comply.

Scope and covered actors

• Covered content typically includes:
  • Content fully generated by AI (text, images, video, audio, code).
  • Content substantially edited or synthesized by AI (for example AI-upscaled images, AI-dubbed audio, AI-translated text).
  • Interactive outputs from AI chatbots or virtual agents visible to users in China.
• Covered entities include:
  • Businesses and individuals that create and publish AI-generated content ("content creators").
  • Platforms and services that distribute, host, or algorithmically promote content to users in China ("content distribution platforms").

Relationship to existing digital rules

• The Measures are expected to sit alongside:
  • The deep synthesis regulations, which already require labeling for specific AI edits.
  • The generative AI regulations, which govern service providers and training data.
• In practice:
  • Generative AI providers must comply with AI-service rules.
  • Businesses using those tools for marketing or customer contact must comply with labeling rules as "creators".
  • Platforms that host or distribute the resulting content must comply with platform-level obligations.

Key operational expectations

• AI-origin content must carry:
  • Some form of explicit label visible to ordinary users in China.
  • Some form of implicit label that allows traceability (metadata, identifiers, or similar technical measures).
• Businesses should be ready to:
  • Identify which of their outputs are AI-generated or AI-edited.
  • Apply and maintain labels through the content life cycle (creation, editing, publication, archiving).
  • Cooperate with regulators and platforms during investigations or audits.

What is the difference between explicit and implicit labels for AI-generated content in China?

Explicit labels are visible indicators that ordinary users can see, such as on-screen text, audio announcements, or watermarks stating that content is AI-generated. Implicit labels are hidden or technical markers, such as metadata fields, content IDs, or cryptographic signatures that allow machines and regulators to trace AI content.

Explicit labeling: visible to users

• Purpose: ensure that users can clearly recognize when they interact with AI content or agents.
• Typical formats:
  • On-screen text like "AI-generated image", "AI-assisted translation", or "This chat is powered by AI".
  • Persistent or semi-transparent visual watermarks on images or videos.
  • Audio cues such as short spoken notices at the start of AI-generated audio or calls.
  • UI labels in chat windows or customer-service tools identifying a bot versus a human agent.
• Placement best practices:
  • Place labels close to the content, not buried in footers or generic terms of use.
  • Use simplified Chinese for China-facing content, in clear and unambiguous wording.
  • Make labels durable across sharing and embedding as far as technically possible.

Implicit labeling: technical traceability

• Purpose: support machine detection, platform governance, and regulatory forensics.
• Typical formats:
  • Metadata fields in images, videos, and documents (for example EXIF, XMP) indicating AI generation and basic provenance.
  • Unique content identifiers (hashes, content IDs) stored in internal or shared databases.
  • Invisible digital watermarks or steganographic signals embedded into media.
  • Database logs linking AI outputs to models, prompts, time stamps, and user accounts.
• Design considerations:
  • Implicit labels should survive basic editing, format conversion, and platform uploads as far as feasible.
  • Data structures should be consistent so that downstream platforms can interpret them.
  • Retention periods should align with Chinese data and cybersecurity rules, especially for logs and identifiers.

How explicit and implicit labels work together

• Regulators expect:
  • Users to be able to recognize AI content in real time (via explicit labels).
  • Platforms and authorities to be able to verify and trace AI content after the fact (via implicit labels).
• For compliance, businesses should:
  • Define standardized explicit label wording and visual design.
  • Embed implicit labels at the point of generation, not only at upload time.
  • Test that labels persist when content is re-used across channels and platforms.

What are the compliance obligations for content creators using AI in China?

Content creators in China must identify AI-generated or AI-edited content and apply both explicit and implicit labels before distribution. This applies equally to marketing teams, customer-service teams, and product groups that use AI tools to generate public-facing or customer-facing content.

Who is a "content creator" in practice?

• Marketing and brand teams using:
  • AI image or video generators for campaigns, social media, or ads.
  • AI copywriting tools for Chinese-language or bilingual content.
• Customer-facing teams using:
  • AI chatbots on websites, apps, or WeChat mini-programs.
  • AI voice agents in call centers or smart devices.
• Product and operations teams using:
  • AI to auto-generate user notifications, recommendations, or interface text.
  • AI to translate, summarize, or personalize content at scale for Chinese users.

Core obligations for content creators

• Labeling at creation or publication
  • Decide which outputs qualify as AI-generated or AI-edited under your internal policy.
  • Apply explicit labels in Chinese where the end user will see the output.
  • Embed implicit labels in files or data structures where technically possible.
• Internal governance
  • Maintain an AI content inventory: what tools you use, where, and for what kinds of content.
  • Set approval workflows for higher-risk outputs such as political, financial, or health content.
  • Train staff on when and how to label AI outputs, with simple checklists and templates.
• Records and traceability
  • Keep logs for a defined period showing:
    • Which tool and model generated each piece of content.
    • Who triggered or approved the generation (user IDs, teams).
    • Prompts or key parameters where feasible and lawful.
  • Ensure that logs containing personal data or sensitive content comply with data protection rules.
• Vendor and tool management
  • Update contracts with AI vendors to:
    • Allocate responsibility for labeling capabilities and metadata.
    • Clarify log retention, cooperation with regulators, and data transfers.
  • Prefer tools that can automatically mark outputs for China-compliant labeling.

Specific to marketing and customer interactions

• Marketing materials:
  • Ads, banners, landing pages, and social media posts that use AI visuals or copy should carry visible AI labels if the AI contribution is material.
  • For co-created content (human plus AI), businesses often label when AI does more than minor grammatical or layout adjustments.
• Customer service and chatbots:
  • Chat interfaces should clearly display when customers are talking to an AI system.
  • If you hand off from a bot to a human agent, clearly indicate the change.
  • Scripts and voice prompts should disclose AI use early in the interaction.

What are the compliance obligations for content distribution platforms in China?

Content distribution platforms must provide mechanisms to label AI content, prevent removal of labels, and cooperate with regulators to manage AI content risks. Platform obligations are heavier than those of individual creators because platforms sit at the control point for large volumes of content.

Which services count as "content distribution platforms"?

• Social media, short-video, and live-streaming platforms.
• Content-sharing and UGC platforms (forums, communities, blogs, podcast hosts).
• E-commerce platforms and marketplaces where merchants upload marketing materials.
• Search engines, news aggregators, and advertising networks distributing creatives.
• Enterprise SaaS and workplace tools that host internal-but-large-scale AI content for Chinese enterprises.

Platform-side duties under labeling rules

• Labeling tools and interfaces
  • Provide upload interfaces that allow creators to flag and label AI-generated content.
  • Support standardized explicit label formats on front-end interfaces.
  • Preserve and read implicit labels embedded by creators or upstream tools.
• Detection and verification
  • Deploy AI-content detection or watermark-reading tools where proportionate.
  • Run risk-based checks on high-reach or sensitive content categories.
  • Flag suspected AI content that lacks proper labels and request corrections from creators.
• Governance and takedown
  • Adopt and publish platform rules on AI content and labeling requirements.
  • Provide complaint channels for users to report unlabeled or misleading AI content.
  • Take timely measures such as adding labels, restricting reach, or removing content when violations appear.
• Regulatory cooperation
  • Keep logs and technical records sufficient to trace AI content sources and distribution paths.
  • Respond to regulator requests for data, sampling, and systemic risk assessments.
  • Conduct internal audits and submit reports if required for large or important platforms.

Business model implications

• Platforms monetizing ads and content for brands in China should:
  • Build AI-labeling requirements into merchant and advertiser terms.
  • Offer tools to automatically add labels where feasible, especially for self-serve ad portals.
• SaaS and infrastructure providers may need:
  • APIs and SDKs that pass through labeling data from upstream to downstream services.
  • Enterprise features that help business customers satisfy their own labeling obligations.

What are the penalties for failing to label AI-generated marketing materials or customer interactions in China?

Failure to label AI-generated or AI-edited content can lead to government orders to correct or remove content, business disruption on major platforms, and administrative fines. Serious or repeated non-compliance can escalate to larger fines, reputational harm, and tighter regulatory scrutiny.

Types of violations

• Publishing AI-generated ads or marketing creatives without required labels.
• Operating AI chatbots or voice agents without clear disclosure to users.
• Removing or obscuring AI labels when reusing or republishing content.
• Providing tools that help others bypass or strip AI labels.
• Failing to keep required logs or to cooperate with investigations into AI content.

Typical enforcement measures (drawing on existing CAC-style practice)

• Corrective orders:
  • Orders to add or fix labels within a specified time.
  • Requirements to review and correct past content at scale.
• Content and account measures:
  • Removal of specific pieces of content or ad campaigns.
  • Restrictions on posting, advertising, or using AI features.
  • Suspension or closure of accounts in serious or repeated cases.
• Administrative fines:
  • Fines pegged to the seriousness of the violation and the scale of impact.
  • Existing deep synthesis and internet rules already allow fines that can reach several hundred thousand RMB, and up to around RMB 1 million for serious violations; labeling rules are expected to align with that order of magnitude.
• Record on credit and compliance systems:
  • Regulators may record violations in public or sectoral credit systems.
  • Large platforms and repeat offenders may face closer supervision or on-site inspections.

Illustrative penalty scenarios

How should foreign companies localize their IP and AI-labeling strategy for China?

Foreign companies should treat China as a separate IP and AI-regulation market, with its own registrations, contracts, and compliance tooling. Relying on global policies without China-specific adaptations exposes you to local enforcement risk and weakens your bargaining position with partners and regulators.

IP footprint localization

• Register in China early:
  • Secure Chinese trademarks, including Chinese-character versions, before major product launches or distributor appointments.
  • Enter key patents into China within priority time limits if the Chinese market or manufacturing base is important.
• Align contracts with Chinese IP reality:
  • Use Chinese-law governed contracts for distributors, licensees, and major vendors.
  • Expressly address ownership of localized content, Chinese trademarks, and improvements.
• Plan for enforcement:
  • Map out administrative, civil, and customs enforcement options for your core IP.
  • Record key IP rights with Chinese customs to block infringing exports.

AI-labeling localization

• China-facing content mapping:
  • Identify which websites, apps, mini-programs, and platforms reach users in China.
  • Identify all AI tools used to generate or personalize content for those channels.
• Local labeling standards:
  • Define explicit AI labels in simplified Chinese, with clear and consistent wording.
  • Standardize where labels appear in Chinese UI layouts and creative templates.
• Technical integration:
  • Work with global engineering teams to ensure AI systems can:
    • Tag outputs designated for China with the right metadata.
    • Insert Chinese-language watermarks or notices by default for China traffic.
  • Ensure that CDNs, ad servers, and DAM systems preserve labels across transformations.
• China-specific governance:
  • Establish a China AI-content owner (for example the China marketing lead plus legal) with veto authority on high-risk content.
  • Build AI-labeling checks into Chinese campaign approvals, RFPs, and local partner agreements.

When should you hire a lawyer or IP/AI compliance expert in China?

You should involve China-experienced IP and regulatory counsel when you plan to enter or scale in the China market, use AI for China-facing content at scale, or face an investigation or dispute. Early engagement usually costs less than trying to fix failed campaigns or lost IP later.

Key triggers for professional support

• Market entry or major growth:
  • Before launching a brand, app, or product in China, including via cross-border e-commerce.
  • Before appointing distributors, licensees, or JV partners who may register IP in their own name.
• Significant AI deployment:
  • When rolling out AI chatbots, recommendation engines, or content tools aimed at Chinese users.
  • When building or localizing foundation models or large-scale AI workflows that may trigger China security assessments.
• Risk events:
  • Receiving a notice or inquiry from CNIPA, CAC, SAMR, or a major platform regarding labeling or IP.
  • Detecting serious infringement of your IP, or being accused of infringing someone else's IP in China.

What experts typically do for you

• Design a China IP filing and enforcement strategy aligned with your commercial goals.
• Draft and localize contracts allocating IP ownership, licensing, and AI responsibilities.
• Design or review AI-labeling policies and technical solutions to fit emerging Chinese standards.
• Interface with Chinese regulators or platforms during audits, investigations, or takedowns.
• Train your China and global teams on IP basics and AI-compliance workflows.

What are the practical next steps for businesses using AI and IP in China?

The most effective next steps are to secure key IP rights in China, map your AI use in China-facing channels, and implement a clear, documented AI-labeling framework. Doing these in parallel positions you to grow while staying inside the emerging Chinese regulatory envelope.

Immediate actions (next 1-3 months)

1. IP audit for China
   • List your core brands, technologies, and creative assets relevant to China.
   • Check which are already registered in China and where you have gaps.
2. AI-content inventory
   • Identify all AI tools used by marketing, customer service, product, and operations for Chinese users.
   • Map which outputs go to which platforms or user touchpoints.
3. Draft a China AI-labeling policy
   • Define what counts as AI-generated or AI-edited content in your context.
   • Set standard explicit labels in Chinese and decide when to apply them.
   • Specify what implicit labels and logs you will maintain.

Medium-term actions (next 3-12 months)

1. File and shore up IP registrations
   • Submit priority trademark and patent filings in China, based on your audit.
   • Record key copyrights and consider customs recordals for high-risk goods.
2. Integrate technical solutions
   • Work with product and engineering to embed labeling into AI generation pipelines.
   • Ensure your CMS, ad servers, and content tools support Chinese labeling and metadata.
3. Train teams and align vendors
   • Run focused training for China marketing, customer service, and product teams.
   • Update vendor and partner contracts to address IP ownership and AI-labeling duties.

Ongoing actions

• Monitor updates and enforcement trends around the Measures for the Labeling of AI-Generated Content and related CAC rules.
• Review your China IP and AI policies annually, or after significant product or regulatory changes.
• Stay in regular contact with China-experienced IP and regulatory counsel to adjust as the legal landscape evolves.