TYGlobe

In the current digital era, mobile phones have become an indispensable component of people's daily lives. As an important element for personalized expression, mobile phone wallpapers are witnessing ever-growing market demand, and their rich and diverse image resources meet users' pursuit of personalization and aesthetic appeal. However, behind this seemingly prosperous market lie a multitude of copyright issues, which pose enormous challenges to application developers and the industry as a whole.

I. Diverse Business Models and Copyright Risks of Wallpaper Mobile Applications

At present, the business models of wallpaper mobile applications demonstrate a trend of diversification. Each model has its unique revenue streams and operational features, and is accompanied by its respective copyright risks.

(1)

Advertising Profit Model

Advertising monetization is one of the most common business models for wallpaper applications. Such applications usually insert various forms of advertisements in different positions of the wallpaper display page, such as banner advertisements, pop-up advertisements, interstitial advertisements, etc. In the process of browsing and selecting wallpapers, users will inevitably be exposed to these advertisements. Application developers collect fees from advertisers based on indicators such as the number of ad impressions and click-through volumes. However, there are potential copyright risks underlying this model. To attract more users and improve the effect of advertising display, some applications may use popular images related to films and television works, animations, games and other relevant content as wallpapers without authorization, so as to increase user attention and dwell time. Such unauthorized use may trigger lawsuits filed by copyright holders, resulting in application developers facing huge amounts of compensation and legal liabilities.

(II)

Paid Membership Model

The paid membership model has also gradually gained popularity among wallpaper applications. Users who become members by paying a certain fee can enjoy a series of exclusive privileges and services. For example, members may obtain higher-definition, more unique and more personalized wallpaper resources, or enjoy benefits such as ad-free browsing experience and priority access to the latest wallpapers. However, such a model also has potential copyright risks. If application developers fail to ensure the copyright legality of member-exclusive wallpapers, make exaggerated claims when publicizing membership rights and interests, or provide wallpapers inconsistent with their commitments, it may trigger user complaints and legal disputes. In addition, the collection and management of membership fees shall comply with relevant laws and regulations, otherwise it may involve issues including unfair competition and protection of consumers' rights and interests.

(III)

In-App Purchase Model

The in-app purchase model refers to a model under which users pay additional fees within an application for specific high-quality wallpapers or relevant value-added services. For example, in mobile wallpaper applications, some exquisite wallpapers including limited editions, exclusively designed works, or products jointly launched with well-known brands are required to be purchased separately by users. This model can generate direct revenue for application developers, while meeting the demands of some users for rare and high-end wallpapers. However, in respect of copyright, where the wallpapers available for in-app purchase have no legitimate sources and authorization, such circumstance will not only damage the legitimate rights and interests of users, but also place application developers in the predicament of copyright infringement. The copyright issues will be more complicated and sensitive, particularly in relation to wallpapers jointly developed with well-known IPs, artists or designers.

The above three business models are only a very small part of a wide range of online business activities. With the development of the Internet, more and more innovative business models may emerge in the future. However, all business models, without exception, shall respect copyright and strictly comply with laws and regulations. At present, the practice of pursuing commercial profits while ignoring risks is prevalent in the commercial sector, which frequently leads to the collapse of business models and even the situation of being on the verge of bankruptcy. Wallpaper applications have become a high-incidence area of copyright infringement in current judicial practice, for example: 1. To rapidly expand their wallpaper libraries, some wallpaper applications use clips and screenshots of other people's film and television works, photographic works, paintings, design patterns and other works without authorization. These works are created by right holders including producers of films, TV dramas and animated works, professional photographers, illustrators, graphic designers and other creators, who hold explicit copyright to their respective works. 2. After obtaining copyrighted works, some applications carry out modification, cropping, color adjustment and other processing on the relevant works without permission, which changes the original expression and artistic effect of the works. Such acts may violate the author's right of alteration and right of integrity, and also constitute copyright infringement.

II. Discussion on the Nature of Torts and Liabilities Concerning Special Business Models

In the field of mobile wallpaper applications, where an infringement occurs, the people's court shall conduct rigorous and meticulous judicial determination in accordance with relevant laws and regulations as well as the specific facts of the case, so as to ascertain the attribution of tort liability and the amount of compensation.

First of all, three-party legal relationships are inevitably formed in the process of providing wallpaper-related services, involving three subjects: Internet Service Providers (i.e. developers/platforms), users, and the infringed copyright holders. With reference to such infringement cases, it is not difficult to find that the main defense raised by most Internet Service Providers against assuming tort liability is that "the infringing party is the user, and their platform only provides Internet services and is not the provider of infringing content". However, when determining the provider of infringing content, the overwhelming majority of courts hold that the operator of the software involved in the case shall bear the burden of proof for its claim that it "only provides information storage space services". If it fails to adduce evidence to support such claim, it may be deemed as the direct provider of the allegedly infringing videos and be held liable for the tort. With regard to the act of some developers purchasing relevant content from third parties on their own initiative to expand the available resources of their platforms, regardless of whether the said content is authentic user information, the author is of the opinion that such act may still be identified as direct infringement.

Secondly, with regard to the circumstance where the infringing content in some wallpaper applications is confirmed to be uploaded by users, shall the platform operators bear liability for such part of infringing content?

With respect to the determination of tort liability of network service providers in relation to wallpaper applications, people's courts usually take multiple factors into comprehensive consideration. Where a network service provider actually knows or ought to know that wallpapers uploaded by a third party are infringing, but fails to take necessary measures to stop the infringement, such as deleting or blocking relevant content in a timely manner, or promotes infringing wallpapers by means of setting up ranking lists, providing recommendations and other methods, thus expanding the scope of impact of the infringement, the network service provider may be deemed to have committed indirect infringement under such circumstances. Although the degree of subjective fault for indirect infringement may be lower than that for direct infringement, the liable party shall still bear corresponding legal liability.

III. Compliance Reminders for Wallpaper Applications

To avoid being entangled in tort disputes and realize the sustainable development of wallpaper applications, application developers shall adopt a series of active and effective compliance measures.

First, it is of paramount importance to establish a strict wallpaper source review mechanism. Application developers shall not merely rely on wallpapers uploaded by users or randomly crawled from the Internet. Instead, they shall set up a dedicated team or entrust professional institutions to conduct copyright review on the wallpapers intended to be incorporated into the applications.

Secondly, entering into a clear and explicit licensing contract with the copyright holder is an important guarantee for ensuring lawful use. The licensing contract shall expressly specify key clauses including the scope, term, territory and method of use, so as to avoid any vague or equivocal provisions. In the meantime, developers shall also pay attention to the payment method and time limit of licensing fees, and ensure that such fees are paid in full and on schedule, so as to maintain a sound cooperative relationship with the copyright holder.

In addition, strengthening legal training for employees and enhancing copyright awareness are effective means to prevent infringements internally. We shall actively respond to infringement disputes, conduct self-examination and make rectifications in a timely manner. Upon receipt of an infringement allegation, we shall immediately conduct self-examination of the wallpapers in the application. If any infringement is ascertained, the relevant wallpapers shall be deleted and their dissemination shall be ceased without delay.

In conclusion, legal compliance is the fundamental guarantee for mobile wallpaper applications to gain a foothold and achieve development amid fierce market competition. Only by attaching great importance to copyright issues, establishing a sound copyright management system and strengthening industry self-discipline can the sound and sustainable development of wallpaper applications be realized, so as to provide users with higher-quality, lawful and secure services, and make positive contributions to the prosperity of the entire digital content industry at the same time.