China's Wuhan court factors AI costs into copyright ruling

a wuhan court in china has made a landmark ruling in a copyright infringement case involving an ai-generated short drama. the court included ai tool licensing fees and token usage in the damages calculation, marking the first time ai production costs have been considered in such a case. the drama was produced using ai tools in early 2026 and was classified as a protectable audiovisual work because employees made creative decisions throughout the process. the court awarded the plaintiff 20,000 rmb and recommended keeping detailed records of the creation process.