Summary of Key Points
Xunlei was ordered to pay a compensation of 7.86 million yuan by the court for its apps' "smooth playback" and "cloud addition" features, which helped spread the pirated drama "I Am a Criminal Police Officer," exceeding the statutory maximum compensation limit of 5 million yuan under copyright law. The court made it clear that technical neutrality is not an excuse for infringement: if a platform uses technology to generate revenue and fails to regulate piracy, it has crossed the legal line. This case is not isolated; the national "Jianwang 2026" campaign has targeted platforms such as cloud storage services, browsers, and search engines. Copyright protection has shifted from post-event accountability to proactive prevention, marking the end of the gray area for the cloud storage industry.
Xunlei's Deceptive Tactics: Turning Pirated Content into a Legitimate Experience to Sell Membership
"I Am a Criminal Police Officer" is a hit drama released by iQiyi in 2024, with exclusive copyright. However, Xunlei's "smooth playback" feature allowed it to collect resources from over 60 pirated websites. By using techniques such as merged storage (storing pirated files on its own servers) and instant file transfer mapping (users could watch the content without having to upload the files themselves), users could watch the drama smoothly, free from ads and buffering issues, just like they would with a legitimate version.
More importantly, Xunlei promoted these features as selling points to attract paid membership. By charging for membership while using pirated content, it was essentially profiting off someone else's copyright. The court determined that Xunlei had committed infringement intentionally.
How Was the 7.86 Million Yuan in Compensation Determined?
The first-instance court ruled that Xunlei had directly infringed and ordered it to pay 7.86 million yuan (including 7.8 million in losses and 60,000 yuan in legal fees), exceeding the statutory limit of 5 million yuan. The second-instance court changed the verdict to "aiding infringement," but the compensation amount remained the same. Why?
- The Impact of Infringement Was Significant: Xunlei's features were active throughout the drama's popularity period, providing free access to paid content through 196 pirated links, severely damaging iQiyi's membership business and revenue from copyright licensing.
- The High Value of the Original Content: The non-exclusive broadcasting rights for "I Am a Criminal Police Officer" alone were sold for 11.78 million yuan, indicating that the losses caused by piracy far exceeded 5 million yuan.
- The Platform's Negligent Attitude: Despite multiple complaints from iQiyi, Xunlei failed to block or restrict the distribution of pirated content.
The court stated that a "comprehensive compensation" approach was necessary to prevent infringers from profiting without facing significant consequences.
Technical Neutrality Is Not an Immunity Shield
Many platforms use technical neutrality as a defense, claiming, "We're just providing a tool; users' infringement is not our responsibility." However, the court made it clear that while technologies like merged storage and instant file transfer are legitimate, if a platform uses them to generate revenue or fails to regulate piracy, it crosses the legal boundary. The "safe harbor rule" (where platforms can be exempted if they unknowingly remove infringing content promptly) does not apply.
In other words, you cannot use technology to profit from piracy and then claim to be just a technical platform—this is unfair behavior, and the law will not tolerate it.
The "Jianwang 2026" Campaign: Targeting Multiple Platforms
The Xunlei case is part of a broader initiative called "Jianwang 2026," launched in June 2026, focusing on cracking down on piracy on cloud storage services, browsers, and search engines. This campaign includes actively providing pirated content or using live streaming to promote it.
The industry is already reacting: platforms like Kuaike have released a white paper on managing copyright violations in cloud storage, and Baidu Cloud Storage has removed over 40,000 infringing links. The clearance of overseas film and TV content has also resulted in the invalidation of many pirated links for American and Korean dramas. These actions represent a shift from passive link removal to proactive prevention.
Upgraded Copyright Protection: End of the Gray Area
In the past, copyright violations might result in only minor fines after the fact. However, things have changed:
- Infringement methods have become more sophisticated (from simple copying to AI-driven content modification).
- Copyright holders face greater pressure (longer video production times and high licensing fees); piracy directly cuts off their revenue streams.
- Regulation has shifted from post-event accountability to proactive prevention (with campaigns targeting key platforms in advance).
For platforms like cloud storage services and browsers, the days of earning illegal profits under the guise of technical neutrality are over. They must either cooperate with legitimate content providers or face significant legal consequences.
In Summary: Don't use technology as a cover for infringement. If you profit from copyrighted material, you must abide by copyright laws; otherwise, the law will hold you accountable.