Beijing Issues First AIGC Trade Secret Penalty for Software Theft
Beijing's Chaoyang District Market Supervision and Management Bureau issued a 100,000 yuan fine in what it called the city's first AIGC trade secret administrative penalty case. A core employee allegedly copied proprietary AI software used for video translation and dubbing while employed, then used it to conduct competing business after starting a new company. The regulator confirmed that AIGC software can be protected as trade secrets and demonstrated the use of electronic data forensics to establish evidence.
What happened
A core employee at a Beijing-based media company that specializes in foreign-language dubbing for short-form video and AI-driven multilingual video translation copied the company's proprietary AIGC software and cracked its database while employed there.
After leaving the company, the employee started a new company and continued using the stolen software to conduct competing business and generate profit.
Reported impact
The proprietary software was an internal asset that significantly reduced translation time and increased production capacity, forming a core component of the company's competitive advantage.
Index analysis
The Beijing Municipal Market Supervision and Management Bureau confirmed in administrative enforcement for the first time that AIGC commercial software can be protected as a trade secret under law.
Enforcement personnel used electronic data forensics to recover evidence from computers and servers, and cross-referenced software installation traces, database access logs, and project output files to reconstruct the copying, cracking, and cross-company reuse over time.
Governance controls
The Chaoyang District Market Supervision and Management Bureau issued a 100,000 yuan fine and guided the company to strengthen access control hierarchies, audit logs, and exit procedures to close management gaps.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.