Wuhan court factors AI production costs into copyright damages

A court in Wuhan, China included token usage and AI tool licensing fees in a copyright damages calculation for the first time. The case involved an AI-generated short drama and places concrete AI production costs alongside more traditional damages factors. For creators and companies, the key takeaway is that the cost of generating AI-assisted work may now matter in certain infringement disputes.

The case centered on a company that used AI tools in early 2026 to produce a one-hour short drama and publish it on platforms including WeChat. One day later, another company allegedly copied the work, gave it a new title, and ran ads in it. The court awarded the plaintiff 20,000 RMB, described in the article as about $2,900.

The court classified the drama as a protectable audiovisual work because employees made creative decisions throughout production. Those decisions included script work, prompt design, selection of AI outputs, and final editing. The ruling treated AI as a tool rather than the sole creator, while also considering runtime, distribution reach, and how long the infringement lasted.

The decision fits into China’s broader expansion of copyright protection for AI-created works, following a 2023 Beijing court decision granting copyright protection to an AI-generated image. The Wuhan court also recommended that creators keep records such as scripts, prompt drafts, and project files. Anyone producing AI-assisted media should treat documentation as part of the creative workflow, not an afterthought.