POLICY · REGULATION · #1133
Wuhan court factors AI token and tool fees into copyright damages
A Wuhan court ruled in early 2026 that token usage and AI tool licensing fees should be considered when calculating copyright damages in a dispute over an AI-generated one-hour short drama, awarding the plaintiff 20,000 RMB. The court found the work protectable as an audiovisual creation because human employees made creative choices (script, prompts, selection and editing) and advised creators to retain scripts, prompt drafts and project files.
KEY POINTS
- A Wuhan court ruled in early 2026 that token usage and AI tool licensing fees should be considered when calculating copyright damages in a dispute over an AI-generated one-hour short drama, awarding the plaintiff 20,000 RMB.
- The court found the work protectable as an audiovisual creation because human employees made creative choices (script, prompts, selection and editing) and advised creators to retain scripts, prompt drafts and project files.
- The ruling is significant because it treats AI usage costs as a compensable factor in copyright damages and affirms that works created with AI can be protected when humans retain decisive creative control.
WHY IT MATTERS
The ruling is significant because it treats AI usage costs as a compensable factor in copyright damages and affirms that works created with AI can be protected when humans retain decisive creative control.