The case

TikTok, the unsolved node of the algorithm

The contenders will have to agree on ForYou, the world's most popular algorithm that suggests videos in line with user tastes

by Rita Fatiguso

(Adobe Stock)

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

With Apec in Busan closed, the TikTok case is still unresolved. The billion-dollar sale of TikTok America and its 170 million users by Bytedance is running on separate tracks. It is known that Oracle will readdress the American data with a string of investors, ByteDance will remain a shareholder, but the contenders will have to agree on control of ForYou, the world's most popular algorithm that suggests videos in line with the user's tastes.

The negotiation with China, which gave birth to TikTok thanks to ForYou, has laid bare the issue of the Chinese framing of the algorithm, especially in view of potential new global disputes: Beijing is working on the internationalisation of Kwai/Huaishou, an app whose shareholders also include the China Administration of Cyberspace (CAC), and who knows what else the future holds.

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There is no coherent Chinese law or articulate regulation of algorithms. Feverish legal negotiations have been focused on the world's most globalised app for months, but sources overlap with direct or indirect forms of protection, algorithms in fact can be framed as copyright, patents, trade and industry secrets, not to mention the data governance and artificial intelligence side.

A real puzzle, each law covers a piece of the problem, but the various pieces do not make the total. In three years, a package of regulations has been passed that touches on the subject without providing clarity: in 2021 the Regulation on the management of algorithmic recommendation services, in 2022 the Regulation on the management of deep synthesis services, and in 2023 the Interim Measures on the management of generative AI services.

As Mao Zedong would say, great is the confusion under heaven, so the situation is excellent. As an idea, a product of ingenuity, the algorithm is neither copyrightable nor patentable. It is protectable if it is expressed in code (copyright), included in an invention with technical effect (patent), kept secret (trade secret), regulated by contract.

It sounds like a tongue twister. Laura Formichella, a sinologist, lecturer at Roma Tre, and expert in Chinese telematics law, explains: 'The Copyright Law only protects the code that implements the algorithm, the Patent Law does not protect it directly, but the practice of the Chinese Patent Office recognises patentability if the algorithm is applied in a technical process that produces a further technical effect, for example in telecommunications, image processing, computer security. The Law against Unfair Competition protects technical and commercial information with economic value and kept confidential, including proprietary algorithms. Finally, the law on the protection of data and personal information affects governance and responsibility in the use of algorithms, rather than the protection of property rights'.

So much complexity does not make international dynamics any easier. The ventilated separation of TikTok's US operations from its Chinese parent company ByteDance will not be a walk in the park, China and the US do not trust each other and fear for their respective data security and thus national security. A knife-edge cut is impossible, a global platform like TikTok inevitably requires interaction between locations from one end of the world to the other. Project Texas is putting up USD 1.5 billion to isolate US operations from its parent company, ByteDance. Beijing must also clear the air at home.

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