ByteDance has found itself in some hot water with Disney and other U.S. studios. ByteDance will take steps to prevent the unauthorized use of intellectual property on its AI video generator Seedance 2.0, the Chinese technology firm said on Monday, following threats of legal action from U.S. studios, including Disney.
“We are taking steps to strengthen current safeguards as we work to prevent the unauthorized use of intellectual property and likeness by users,” ByteDance said in its statement.
Disney sent a cease-and-desist letter to ByteDance accusing the Chinese firm of using Disney characters to train and power Seedance 2.0 without permission, a source familiar with the matter told Reuters late on Sunday.
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The controversy centers on claims that users were generating AI videos featuring copyrighted characters and settings without permission. Studios allegedly argued that the tool was capable of producing content that closely resembled protected franchises, raising concerns about copyright infringement and brand misuse.
Disney said ByteDance had pre-packaged Seedance with a pirated library of copyrighted characters from franchises including Star Wars and Marvel, portraying them as if they were public-domain clip art, the person said.
The dispute highlights the growing tension between rapid advances in generative artificial intelligence and the long-established legal frameworks that protect creative works. As AI tools become more sophisticated and accessible, questions around how they are trained, what material they rely on, and how users deploy them are becoming increasingly urgent. Technology companies are under mounting pressure to demonstrate that innovation can proceed without undermining intellectual property rights or eroding the value of original content.
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Online news outlet Axios was the first to report on Disney’s move. Paramount Skydance has also sent a cease-and-desist letter to ByteDance, accusing the Chinese firm of engaging in “blatant infringement” of its intellectual property, Variety reported at the weekend.
For global firms operating across multiple jurisdictions, the stakes are particularly high. Differences in regulatory environments, enforcement standards and legal interpretations can complicate compliance efforts and heighten geopolitical sensitivities. At the same time, major studios and rights holders are signaling that they are prepared to actively defend their portfolios in the face of perceived infringement linked to AI systems.