ByteDance Changes AI Tool After Companies Say It Used Their Characters

A new artificial intelligence tool developed by ByteDance, named Seedance, is facing scrutiny from major entertainment companies, most notably Disney. Following legal threats and public criticism, ByteDance has announced plans to strengthen safeguards around the AI application, which generates videos from text prompts. The core issue revolves around allegations that Seedance has been used to create content featuring copyrighted characters and intellectual property owned by these companies without authorization.

ByteDance, the Chinese technology giant behind TikTok, developed Seedance as a generative AI tool capable of producing video content based on user-provided text descriptions. Its release has ignited a debate concerning the ethical and legal boundaries of AI-generated media, particularly in relation to existing intellectual property rights.

Entertainment Industry's Reaction to Seedance

The deployment of Seedance has prompted swift and strong reactions from prominent figures in the entertainment sector.

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• Disney led the charge, dispatching a cease-and-desist letter to ByteDance. The company accused ByteDance of engaging in a "virtual smash-and-grab of Disney’s IP," highlighting concerns about the unauthorized generation of its characters from franchises like Marvel and Star Wars.

• Paramount has also issued a similar cease-and-desist letter, alleging "blatant infringement" of its intellectual property by Seedance and ByteDream, another AI platform from ByteDance. This included claims of unauthorized use of characters from shows like "South Park" and "Star Trek".

• Other industry groups, including the Motion Picture Association and the Human Artistry Campaign, have voiced their opposition. The latter, a coalition of major Hollywood unions such as SAG-AFTRA and the Director's Guild, issued a statement demanding that authorities use all available legal means to halt what they term "wholesale theft."

ByteDance's Response and Mitigation Efforts

In light of these objections and legal actions, ByteDance has stated its intention to curb the capabilities of Seedance and strengthen its safeguards. This suggests a move towards implementing filters or restrictions that would prevent the AI from generating content that infringes on copyrighted material. The company’s pledge indicates an acknowledgment of the concerns raised, though the specific technical measures remain unelaborated.

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Legal and Ethical Landscape of AI-Generated Content

The situation with Seedance underscores a broader, evolving discussion about the intersection of artificial intelligence and intellectual property law.

• Copyright Infringement Claims: The core of the dispute centers on whether Seedance, through its training data or its output, has illegally reproduced or derived works from existing copyrighted material. Companies like Disney argue that their intellectual property is being used without permission, potentially devaluing their assets and infringing on their exclusive rights.

• Disney's AI Strategy: Notably, Disney has adopted varied approaches to AI. While issuing legal threats to ByteDance, it has also reportedly negotiated deals with other AI developers, such as OpenAI, for their character-related AI content. This suggests a strategic effort to control and monetize AI's role in its intellectual property rather than an outright rejection of the technology.

• Broader Industry Impact: The controversy surrounding Seedance highlights the challenges faced by the entertainment industry in navigating the rapid advancements in AI. Questions persist about how existing legal frameworks can adequately address AI-generated content and the potential for large-scale infringement.

Expert Analysis

"ByteDance’s virtual smash-and-grab of Disney’s IP is willful, pervasive, and totally unacceptable."— David Singer, Jenner & Block, writing on behalf of Disney.

Disney’s legal counsel "didn’t mince words" regarding the company’s stance on unauthorized AI use of its intellectual property.

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The allegations from legal representatives suggest a strong belief in the violation of intellectual property rights, framing ByteDance's actions as deliberate and extensive. The parallel legal actions against other AI platforms, such as Midjourney and MiniMax, indicate a broader strategy by companies like Disney and NBCUniversal to address perceived infringements across the AI landscape.

Conclusion

ByteDance's decision to modify its AI video tool, Seedance, follows significant legal pressure and public outcry from major entertainment entities, particularly Disney and Paramount. Accusations of intellectual property infringement, including the unauthorized use of copyrighted characters, form the basis of these challenges. ByteDance's pledge to enhance safeguards suggests a move towards addressing these concerns. However, the broader implications for the development and regulation of AI-generated content remain a critical and developing issue, with ongoing debates about legal frameworks and industry standards.

Sources

• BBC News: "Seedance: ByteDance to curb controversial AI app after Disney legal threat"

• Link: https://www.bbc.com/news/articles/c93wq6xqgy1o

• Context: Reports on ByteDance's decision to modify its AI video tool following legal threats from Disney and complaints from other entertainment companies, detailing the nature of the AI tool and the legal ramifications.

• South China Morning Post: "ByteDance ‘strengthening safeguards’ after Seedance AI video controversy"

• Link: https://www.scmp.com/tech/big-tech/article/3343626/bytedance-ai-video-tool-seedance-accused-disney-copyright-smash-and-grab

• Context: Details ByteDance's response to the controversy, including Disney's accusations of copyright infringement and the company's commitment to enhancing its AI tool's security measures.

• Deadline: "Disney Blasts ByteDance With Cease And Desist Letter Over Seedance 2.0 AI Video Model"

• Link: https://deadline.com/2026/02/disney-bytedance-cease-and-desist-letter-seedance-ai-video-1236719549/

• Context: Focuses on Disney's legal actions against ByteDance concerning Seedance, framing the move within Disney's broader strategy for monetizing AI and controlling its intellectual property.

• Variety: "Paramount Sends ByteDance Cease-and-Desist Letter Over Seedance AI Videos, Alleging Intellectual Property Infringement"

• Link: https://variety.com/2026/film/news/paramount-disney-bytedance-cease-and-desist-seedance-ai-infringement-ip-1236663663/

• Context: Reports on Paramount's legal action against ByteDance for Seedance and Seedream, corroborating Disney's allegations and outlining specific intellectual property concerns.

• That Park Place: "Disney Hits ByteDance With Cease and Desist Over Viral Seedance 2.0 AI Videos — But Can Disney Actually Sue The Chinese Company?"

• Link: https://thatparkplace.com/disney-hits-bytedance-with-cease-and-desist-over-seedance-ai-videos-but-can-disney-actually-sue-the-chinese-company/

• Context: Examines Disney's cease-and-desist letter to ByteDance over Seedance 2.0 and discusses the legal feasibility of Disney pursuing action against a Chinese company.

• Business Insider: "How Disney picks its AI copyright battles depends on who's ripping it off"

• Link: https://www.businessinsider.com/disney-ai-copyright-battles-seedance-nano-banana-sora-midjourney-2026-2

• Context: Analyzes Disney's approach to AI copyright, contrasting its legal actions against ByteDance with its negotiated agreements with other AI developers like OpenAI, and detailing its lawsuits against Midjourney.

• The AV Club: "Disney is extremely mad at China's new plagiarism machine"

• Link: https://www.avclub.com/disney-issues-cease-and-desist-to-bytedances-seedance-ai

• Context: Covers Disney's cease-and-desist letter regarding Seedance, quoting legal language about "pirated library of Disney’s copyrighted characters" and discussing the broader industry response from groups like the MPA and Human Artistry Campaign.

• The Wrap: "Disney Hits ByteDance With Cease-and-Desist, Claiming Seedance AI Tool Is 'Hijacking' Trademarked Characters"

• Link: https://www.thewrap.com/industry-news/public-policy-legal/disney-bytedance-seedance-cease-and-desist/

• Context: Reports on Disney's cease-and-desist letter to ByteDance concerning Seedance 2.0, citing claims of infringement on creative property and referencing similar actions taken against Meta and Character.AI, as well as ongoing litigation against Midjourney and MiniMax.

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