Token usage and AI tool licensing fees have been included in a copyright damages calculation for the first time. A court in Wuhan, China made the ruling in a dispute over an AI-generated short drama, the National Law Review reports.
The decision extends China's growing copyright protections for AI-created works. Back in 2023, a Beijing court already granted copyright protection to an AI-generated image. In this 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 ads in it.
The court classified the drama as a protectable audiovisual work because employees had made their own creative decisions at every stage, from the script to prompt design, selection of AI outputs, and final editing. The AI was just a tool. Beyond AI-specific costs, the court also weighed traditional factors like runtime, distribution reach, and how long the infringement lasted.
It awarded the plaintiff 20,000 RMB (about $2,900) and recommended that creators keep records such as scripts, prompt drafts, and project files.
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