supplying Seedance with a "pirated library"
ByteDance has pledged to curb a controversial artificial intelligence video-making tool after legal threats from Disney and mounting pressure from Hollywood studios.
The Chinese technology company is facing accusations that its app, Seedance, has enabled the unauthorised use of copyrighted characters from some of the world’s biggest entertainment franchises.
In recent days, videos created using Seedance 2.0 have spread rapidly online. Many users have praised the tool for its striking realism and cinematic quality.
However, the surge in AI-generated clips has alarmed major studios, who argue that the platform has crossed legal boundaries.
Disney has sent a cease-and-desist letter to ByteDance accusing it of supplying Seedance with a “pirated library” of the studio’s copyrighted characters, including those from Marvel and Star Wars.
Disney’s lawyers accused ByteDance of committing a “virtual smash-and-grab” of their intellectual property, including superheroes from Marvel, Star Wars and various cartoons.
The dispute centres on the latest version of Seedance, launched on February 12, which allows users to generate short videos from text prompts.
Like other generative AI tools, Seedance can create clips based on minimal written instructions. Some of those clips appear to recreate well-known characters and scenes.
The company has not disclosed what data it uses to train Seedance.
ByteDance said the company “respects intellectual property rights and we have heard the concerns regarding Seedance 2.0”.
“We are taking steps to strengthen current safeguards as we work to prevent the unauthorised use of intellectual property and likeness by users.”
The company has previously said the product had already paused the ability for users to upload images of real people.
It also stated that it respects intellectual property rights and copyright protections and takes any potential infringement seriously.
The legal threat from Disney follows wider criticism from the entertainment industry.
Paramount Skydance has reportedly sent ByteDance a cease-and-desist letter demanding that Seedance stop using its content.
The Motion Picture Association, which represents major US studios including Warner Bros. Discovery, Paramount Pictures and Netflix, has demanded that the tool “immediately cease its infringing activity”.
Actors’ union SAG-AFTRA has also accused Seedance of “blatant infringement”.
The controversy extends beyond Hollywood.
The Japanese government has launched an investigation into ByteDance over potential copyright violations after AI-generated videos of popular Japanese anime characters appeared online.
The dispute reflects growing tensions between artificial intelligence developers and rights holders over how generative models are trained and deployed.
In 2025, Disney struck a £730 million deal with OpenAI, granting its platforms access to 200 characters from franchises including Pixar, Marvel and Star Wars.
The agreement covered tools such as ChatGPT and the video-generation model Sora.
At the same time, legal battles involving AI platforms have intensified.
In 2025, Disney and NBCUniversal sued AI image generator Midjourney, accusing the platform of generating “endless unauthorised copies” of the studios’ copyrighted works. The case remains ongoing.
Disney has also asked Google to restrict the generation of its characters on Google’s AI platforms.
ByteDance has yet to outline specific technical changes to Seedance. The company’s public response signals acknowledgement of the concerns, but key details remain unclear.
As regulators and studios increase scrutiny, the outcome of the dispute could shape how generative AI tools operate in global entertainment markets.
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