Disney Issues Cease-and-Desist to ByteDance Over Alleged AI Copyright Infringement

Disney has sent a cease-and-desist letter to ByteDance, accusing the Chinese tech giant of using copyrighted Disney characters to train and power its Seedance 2.0 AI video generator without authorization, according to a source familiar with the matter. The dispute highlights growing tensions between major entertainment companies and artificial intelligence developers over intellectual property rights and AI-generated content.

In the letter, Disney reportedly claims that Seedance 2.0 was pre-packaged with a pirated library of characters from blockbuster franchises such as Star Wars and Marvel. The media conglomerate alleges that these copyrighted characters were presented as if they were public-domain assets. According to the source, Seedance has reproduced, distributed, and created derivative works featuring well-known figures including Spider-Man and Darth Vader, raising serious concerns about copyright infringement and unauthorized use of intellectual property.

ByteDance told the BBC it plans to strengthen safeguards within its Seedance 2.0 AI video tool to prevent the misuse of copyrighted characters and celebrity likenesses. However, the company did not immediately respond to Reuters’ request for comment. The move was first reported by Axios, while Variety noted that Paramount Skydance has also issued a cease-and-desist letter to ByteDance, accusing the firm of “blatant infringement” involving its own intellectual property.

Seedance 2.0, launched last week, has quickly gained traction in China. Viral AI-generated videos include a cinematic fight scene featuring Tom Cruise and Brad Pitt. The AI model has drawn comparisons to DeepSeek and earned praise for generating high-quality, cinematic storylines from simple prompts.

Disney has previously taken action against AI platforms, including Character.AI, over unauthorized character usage. Notably, in December, Disney signed a licensing agreement with OpenAI, allowing the use of characters from Star Wars, Pixar, and Marvel in OpenAI’s Sora video generator, signaling a strategic approach to AI partnerships while protecting its intellectual property rights.