A Company Fined 100,000 RMB for Inducing AI to Lie and Fabricating Trademark Infringement Evidence

WISECODE Take

On August 19, 2026, Sumou Company was fined 100,000 RMB by the Shanghai Qingpu District People's Court for using targeted searches to induce AI into generating false trademark associations. Many believe AI-generated evidence is infallible, ignoring that it can be manipulated. This case is essentially a failure of integrity due to malicious evidence fabrication using technical loopholes. Although the original claim against Zhenmouhang was only 30,000 RMB, the court imposed a 100,000 RMB fine for false evidence, showing zero tolerance for disrupting litigation order. Honest businesses that do not manipulate algorithms are unaffected. This is akin to fabricating financial records to sue investors, which will eventually be exposed. To prevent malicious associations, businesses should use IPCLASS's trademark monitoring services to collect compliant data. Those who do not abuse technology face no risk here. We recommend: first, explicitly contract the legality of evidence collection when outsourcing enforcement; second, demand raw search histories from accusers to verify if evidence was artificially manipulated. No matter how advanced technology is, judicial review will always return to the principle of integrity.