A Wuhan court in China has included token usage and AI tool licensing fees in a copyright damages calculation for the first time. The ruling was issued in a legal dispute over an AI-generated short drama, marking a notable expansion of intellectual property protections for works created with artificial intelligence.
In the case, a company used AI tools in early 2026 to produce a one-hour short drama and published it on platforms like WeChat. One day later, another company copied the work, gave it a new title, and ran advertisements in it. The Wuhan court classified the drama as a protectable audiovisual work because human employees made creative decisions at every stage, including scriptwriting, prompt design, output selection, and final editing, treating the AI strictly as a tool.
The court weighed traditional factors such as runtime, distribution reach, and infringement duration alongside AI-specific production costs. It ultimately awarded the plaintiff 20,000 RMB, which is about $2,900, and advised creators to maintain detailed records including scripts, prompt drafts, and project files.
This ruling matters because it establishes legal precedent by officially integrating AI production expenses into copyright infringement damages.