China Restructures Internet Court Jurisdiction, Shifting Focus to Cutig Edge Digital Disputes
Introduction: A Strategic Refinement of Digital
Justice
On October 10, 2025, China’s Supreme People’s Court (SPC) announced a significant
restructuring of the jurisdiction of its specialized Internet Courts, a move that
signals a strategic refinement of the country’s digital justice system. The new
provisions, which are set to take effect on November 1, 2025, reallocate certain
types of cases to traditional courts while empowering the Internet Courts to focus
on new and complex legal challenges emerging from the digital economy. For legal
practitioners and businesses operating in China’s technology sector, this
jurisdictional shift provides crucial clarity and highlights the evolving priorities of
the Chinese judiciary in the digital age.
The establishment of Internet Courts in Beijing, Hangzhou, and Guangzhou in 2017
and 2018 was a pioneering move by China to create a judicial system capable of
handling the unique legal issues arising from the country’s booming digital
economy. The latest adjustments to their jurisdiction reflect the SPC’s intent to
ensure that these specialized courts remain at the forefront of legal innovation,
tackling the most cutting-edge and complex online disputes. This article delves into
the key changes in the new jurisdictional provisions, analyzes their implications for
different types of cases, and offers insights for businesses navigating the redrawn
lines of digital justice in China.
The New Jurisdictional Landscape: What’s In and What’s Out
The 2025 Provisions on the Jurisdiction of Internet Courts amend the original 2018
rules by transferring several categories of cases, which are now considered more
“traditional” online disputes, to the regular court system. The most notable change
is the removal of jurisdiction over most online copyright and neighboring rights
disputes. This is particularly significant given that the Beijing Internet Court has
been a leader in developing jurisprudence on generative AI and copyright, including
the landmark Li v. Liu case.
The cases now excluded from the Internet Courts’ jurisdiction include:
1. Copyright and neighboring rights disputes involving works first published
online.
2. Infringement disputes over works published or disseminated online.
3. Financial and small loan contract disputes where the entire transaction
occurred online.
4. Product liability disputes for products purchased on e-commerce platforms.
5. Online infringement of reputation, personality, and property rights.
In place of these, the Internet Courts will now have exclusive jurisdiction over a new
set of disputes that represent the next frontier of digital law:
Online data disputes: Including ownership, infringement, and contract
disputes related to data.
Personal information and privacy disputes: Cases concerning the protection
of personal information online.
Virtual property disputes: Including ownership, infringement, and contract
disputes over virtual assets.
Online unfair competition disputes: A critical area as platform-based
business models evolve.
Strategic Implications of the Jurisdictional Shift
The restructuring of the Internet Courts’ jurisdiction has several important strategic
implications for businesses and legal practitioners:
Focus on High-Stakes Digital Disputes: By concentrating the expertise of the
Internet Courts on emerging legal issues such as data ownership, virtual
property, and unfair competition, the SPC is ensuring that these complex
cases are handled by judges with the necessary technical and legal
knowledge. This is likely to lead to more sophisticated and well-reasoned
judgments in these cutting-edge areas.
Mainstreaming of E-Commerce and Copyright Disputes: The transfer of
online copyright and e-commerce disputes to the regular court system
indicates that these are no longer considered novel legal issues. This
“mainstreaming” suggests that the Chinese judiciary as a whole is now
expected to have the capacity to handle these types of cases, which could lead
to a broader and more consistent application of the law across the country.
Clarity for Litigants: The new provisions provide greater clarity for litigants
on where to file their cases. This will help to reduce procedural delays and
ensure that cases are heard in the most appropriate forum from the outset.
Guidance for Businesses and Legal Advisors
In response to these changes, businesses and their legal advisors should:
Review and Update Litigation Strategies: Companies involved in online
disputes in China should review their litigation strategies to ensure they are
aligned with the new jurisdictional rules. This includes identifying the correct
court for filing new cases and understanding the potential implications of
having a case heard in a regular court versus an Internet Court.
Monitor Developments in “New Frontier” Cases: Legal practitioners should
closely monitor the jurisprudence that emerges from the Internet Courts in the
new areas of their jurisdiction. These cases will set important precedents for
data ownership, virtual property rights, and online competition law in China.
Adapt Compliance Programs: Businesses, particularly those in the tech
sector, should ensure that their compliance programs are up-to-date with the
latest legal developments in data protection, privacy, and unfair competition.
The increased focus of the Internet Courts on these areas is likely to be
accompanied by more vigorous enforcement.
Conclusion: A Maturing Digital Justice System
The restructuring of China’s Internet Court jurisdiction is a sign of a maturing digital
justice system. By reallocating judicial resources and focusing the expertise of its
specialized courts on the most complex and novel legal challenges of the digital
age, the SPC is demonstrating its commitment to creating a predictable and
effective legal environment for the digital economy. For businesses and lawyers
operating in this dynamic space, understanding and adapting to these changes will
be key to successfully navigating the legal landscape of digital China.
