A dispute has erupted between Hollywood studios and Chinese technology giant ByteDance.
The company now says it will strengthen safeguards on its AI video tool, Seedance, after receiving a cease-and-desist letter from The Walt Disney Company.
The issue stems from viral AI-generated videos that appear to feature copyrighted characters from major film franchises.
Studios argue that the tool may have used protected content without authorization.
A “Pirated Library”
On Friday, Disney formally demanded that ByteDance stop alleged copyright violations linked to Seedance 2.0.
According to reports, Disney’s lawyers accused the company of carrying out a “virtual smash-and-grab” of its intellectual property.
The letter alleged that Seedance relied on a “pirated library” of copyrighted characters.
The complaint referenced properties from Marvel, Star Wars, and multiple Disney animated franchises. Disney owns these franchises and licenses them globally.
Characters such as Spider-Man, Anakin Skywalker, and Rey generate significant revenue across film, streaming, merchandise, and theme parks.
As a result, the company closely guards their use.
Also read: Disney Accuses Google Of Massive AI Copyright Infringement
Viral AI Clips
Seedance 2.0 launched on 12 February, and soon after, AI-generated videos began circulating online.
The BBC identified clips said to have been created using Seedance. Some show Star Wars characters Anakin Skywalker and Rey battling with lightsabers.
Others depict Spider-Man fighting Captain America on the streets of New York.
Many viewers praised the realism of the videos, but the studios begged to differ.
Like other generative AI tools, Seedance creates videos from short text prompts. Users simply type a description that guides the cinematic clip.
However, ByteDance has not disclosed what data it used to train the model. That lack of transparency has intensified scrutiny.
ByteDance’s Safeguards
On Monday, ByteDance told the BBC that it “respects intellectual property rights.” The company acknowledged the issues raised about Seedance 2.0.
It stated that it is taking steps to strengthen safeguards to prevent the unauthorized use of intellectual property and likenesses.
However, ByteDance did not provide details about what specific measures it will introduce.
Previously, the company said it had paused the ability for users to upload images of real people to reduce misuse involving real-world likenesses.
Yet, questions still exist about how the platform handles fictional characters protected by copyright.
Motion Picture Association
The Motion Picture Association represents major US studios, including Warner Bros., Discovery, Paramount Global, and Netflix.
The association has demanded that Seedance “immediately cease its infringing activity.”
In addition, Paramount Skydance has reportedly sent ByteDance its own cease-and-desist letter.
Meanwhile, the actors’ union SAG-AFTRA accused Seedance of “blatant infringement.”
These responses reflect broader anxiety in Hollywood. Writers and actors have already voiced concerns about AI replacing creative roles.
Now studios fear losing control over their intellectual property.
Japanese Government
Japan’s government has opened an investigation into ByteDance.
Officials are examining potential copyright violations after AI videos featuring popular Japanese anime characters appeared online.
This development shows that the controversy is not limited to US studios. It has become an international matter.
Similar Legal Battles
Seedance is not the only AI platform facing legal scrutiny. Last year, Disney and NBCUniversal sued Midjourney.
The studios accused the AI image generator of producing “endless unauthorized copies” of copyrighted works. That case remains ongoing.
In addition, Disney has asked Google to restrict the generation of its characters on Google’s AI platforms.
At the same time, Disney has pursued licensed AI partnerships. The company signed a reported $1 billion agreement with OpenAI.
The deal granted access to approximately 200 characters from franchises including Pixar, Marvel, and Star Wars for approved AI projects.
This contrast is notable. Disney supports AI development under formal licensing agreements but challenges platforms that allegedly use content without permission.
