A Wuhan court ruled AI production costs are now part of copyright damages, awarding 20,000 RMB for infringement of an AI-generated drama.
The decision marks the first time token usage and AI tool licensing fees have been included in a copyright damages calculation.
The court classified the drama as a protectable audiovisual work because employees made their own creative decisions at every stage, from script to editing. The AI was just a tool, used to assist in the creative process.
The court also considered traditional factors like runtime, distribution reach, and how long the infringement lasted. These factors, along with AI-specific costs, were weighed to determine the final damages. The ruling extends China's growing copyright protections for AI-created works, following a 2023 Beijing court case that 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 emphasized that the AI was a tool, not the creator, and that human input was essential to the creative process.
"The AI was just a tool, used to assist in the creative process," said the court. "Employees made their own creative decisions at every stage, from script to editing." The ruling sets a precedent for how AI-generated content will be treated in future copyright cases.
The decision follows a 2023 Beijing court case that granted copyright protection to an AI-generated image. The court emphasized that AI-generated works can be protected if human input is involved. The ruling is part of China's broader effort to establish clear legal frameworks for AI-generated content.
The court did not specify how AI costs will be calculated in future cases, and the open question remains how these costs will be quantified. The ruling is expected to influence future copyright cases involving AI-generated works.
Source: thedecoder
