MANY MINDEDWuhan Court First Links AI Tool Costs to Copyright Damages in China
Wuhan City People's Court ruled in a copyright infringement case that included token usage and AI tool licensing fees as part of damages calculations for the first time in China. The ruling addressed a dispute over an AI-generated one-hour short drama produced in early 2026, where a second company copied the work, rebranded it, and ran ads within it. The court classified the AI-generated drama as a protectable audiovisual work because human creative decisions were made at every stage from script development to editing. It determined AI tools functioned as instruments rather than primary creative agents and applied traditional copyright factors including runtime, distribution reach, and infringement duration. The court awarded 20,000 RMB ($2,900) in damages to the plaintiff and recommended creators maintain records of scripts, prompt drafts, and project files. This decision extends China's growing legal framework for AI-generated works, following a Beijing court's 2023 ruling that granted copyright protection to an AI-generated image. The ruling represents a practical step toward clarifying legal costs for small innovators using AI tools.
This approach reduces legal uncertainty for AI creators by establishing that AI tool costs can be factored into infringement settlements—potentially lowering enforcement barriers for small-scale innovators. The court’s focus on human creative input as the foundation for copyright protection helps distinguish AI-assisted work from purely automated output.
For small creators in China, this ruling moves abundance by making copyright enforcement more predictable and cost-transparent. By incorporating token usage and licensing fees into damages calculations, it prevents arbitrary legal costs that could otherwise gatekeep innovation. The recommendation for record-keeping provides a practical pathway for creators to demonstrate human involvement without requiring full documentation burdens.
Next, the court will likely apply this framework to other AI-generated works. Creators should monitor how this ruling scales to different content types and whether the 20,000 RMB damages figure becomes a benchmark for similar cases. The ruling’s advisory nature on record-keeping—rather than binding obligation—means compliance remains voluntary, though the court’s emphasis on human creative decisions offers a clear standard for future disputes. The source reports this ruling occurred on September 28, 2026, and the 20,000 RMB figure represents specific damages in this case.
Source: The Decoder