A court in Wuhan has included token usage and AI licensing fees in copyright damages calculations for the first time. This ruling arose from a dispute over an AI-generated short drama produced early in 2026, where one company copied another’s work and ran advertisements against it. The judges classified the drama as a protectable audiovisual work because human employees made creative decisions at every stage, from scriptwriting to final editing. Beyond standard factors like runtime and distribution reach, the tribunal specifically weighed the costs of generating the content. The plaintiff received an award of 20,000 RMB, roughly equivalent to $2,900. The decision extends existing protections for AI-created works by acknowledging that significant human input transforms the output into intellectual property. Judges also recommended that creators maintain detailed records of scripts, prompt drafts, and project files to support future claims. This approach treats artificial intelligence as a mere tool rather than an independent author. The judgment signals a shift in how Chinese courts assess value in infringement cases involving generative technology.
- Human creative decisions at every stage determine protectability
- Production costs now factor into final damage awards
- Creators should keep detailed records of prompts and edits
