ByteDance moves to limit AI video tool following Disney legal threat
Walt Disney sent a cease-and-desist letter accusing ByteDance of supplying the app with a “pirated library” of copyrighted characters, including those from its Marvel and Star Wars franchises
Chinese technology company ByteDance has pledged to tighten controls on its artificial intelligence video tool Seedance after receiving a cease-and-desist letter from Walt Disney and facing complaints from other entertainment groups, according to sources familiar with the matter.
On Feb. 13, 2026, Walt Disney sent a cease-and-desist letter accusing ByteDance of supplying the app with a "pirated library" of copyrighted characters, including those from its Marvel and Star Wars franchises, the sources said. Disney's lawyers characterized the alleged unauthorized use of their intellectual property as a "virtual smash-and-grab," says the BBC.
The letter followed the Feb. 12 launch of Seedance 2.0, a generative AI tool that creates realistic video clips from short text prompts. Viral videos produced by the tool have shown scenes such as Spider-Man fighting Captain America and a lightsaber duel between Anakin Skywalker and Rey.
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The Motion Picture Association demanded that the Seedance tool "immediately cease its infringing activity". SAG-AFTRA, the actors' union, accused the platform of "blatant infringement".
Japan's government has also opened an investigation into potential copyright violations involving popular anime characters, according to the sources.
In a statement to the BBC, ByteDance said the company "respects intellectual property rights and we have heard the concerns regarding Seedance 2.0". The company added: "We are taking steps to strengthen current safeguards as we work to prevent the unauthorised use of intellectual property and likeness by users".
ByteDance previously paused a feature that allowed users to upload images of real people, but has not disclosed what data was used to train Seedance.
The dispute adds to mounting legal pressure on companies developing generative AI tools. In a separate lawsuit against Midjourney, Disney and NBCUniversal accused that platform of generating "endless unauthorised copies" of copyrighted works.
