Disney Targets ByteDance’s Seedance AI Over Copyright Concerns

Disney has issued a cease-and-desist notice to ByteDance because the company claims that ByteDance illegally used Disney intellectual property to develop its Seedance 2.0 AI video generator. The dispute marks another flashpoint in the growing collision between Hollywood rights owners and generative AI platforms.

Disney claims that Seedance 2.0 came with a complete collection of stolen copyrighted characters from major franchises including Star Wars and Marvel which the company treated as public-domain assets. The complaint states that the AI tool generates unauthorized derivative content which includes recognizable characters like Spider-Man and Darth Vader who appear without proper licensing.

What Disney’s Letter Says

The legal warning from Disney asserts that Seedance illegally makes and shares video content which includes Disney's protected characters and stories. The studio asserts that these actions violate established copyright laws which protect its artistic assets.

The Motion Picture Association (MPA) and other industry groups have backed Disney’s position, criticizing Seedance 2.0 for what they see as a broad and unauthorized use of U.S. copyrights. Critics argue that AI-generated content threatens to reduce the worth of artistic creations from actors and writers and studios because it creates confusion between original works and computer-generated replicas.

ByteDance’s Response and Next Steps

ByteDance responded to the legal challenge by stating its commitment to intellectual property protection while announcing plans to strengthen security measures that will prevent unauthorized access to copyrighted materials and celebrity likenesses on the Seedance platform. The company did not provide detailed plans but indicated it will work to update protections.

The Seedance 2.0 tool released in February 2026 has created substantial online buzz because it enables users to produce cinematic-quality videos through text-based prompts. The platform gained viral success through its AI-generated fight scenes and film moment recreations which now face legal examination because studios worry about their impact on franchise operations.

Broader Industry Implications

The Disney-ByteDance conflict shows a bigger trend that exists between entertainment companies because they disagree about developing and using generative AI models. Studios have previously taken action against other AI platforms for alleged misuse of copyrighted material and many studios demand better rules together with licensing requirements. 

The outcome of this dispute will affect how content owners and tech companies and regulators manage copyright together with licensing and AI-generated media in future years as generative AI tools gain power and become more accessible.