Key holding or allegation
The courts separated user conduct from platform conduct and upheld liability based on the platform's knowledge, commercial model and failure to take reasonable measures, while addressing cessation of infringing model availability.
Why it matters
Important Chinese authority directly engaging with LoRA training, model dissemination, outputs and intermediary responsibility.
Facts
Users trained and published LoRA models associated with Ultraman on the defendant platform and generated related images.
Issues before the court
Distinction between user training/generation, model dissemination and platform responsibility; treatment of targeted character reproduction.
What the court did not decide
Should not be generalised into a rule that all LoRA training or all foundation-model training infringes copyright.
Procedural timeline
Hangzhou Internet Court
First-instance merits judgment: Court addressed user-trained Ultraman LoRA models, generated outputs and platform responsibility, separating user conduct from the platform's own duties.
Hangzhou Intermediate People's Court
Appellate judgment: Appeal dismissed; appellate court upheld the result and addressed targeted LoRA model dissemination and cessation measures.