ByteDance to Curb Controversial AI Video App After Disney Legal Threat

Hollywood studios accuse ByteDance's Seedance of copyright infringement

Published on Feb. 16, 2026

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Chinese tech giant ByteDance has pledged to strengthen safeguards on its Seedance AI video-making tool after receiving cease-and-desist letters from Disney and other Hollywood studios over copyright infringement. Many Seedance-generated videos featuring Disney's intellectual property, including Marvel and Star Wars characters, have gone viral online, prompting legal action.

Why it matters

This case highlights the growing tension between the rapid development of generative AI tools and the need to protect intellectual property rights. As these AI technologies become more advanced and accessible, the entertainment industry is grappling with how to respond to the unauthorized use of their copyrighted characters and content.

The details

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 Motion Picture Association and actors' union Sag-Aftra have also demanded that Seedance cease its infringing activity. ByteDance has pledged to strengthen current safeguards and prevent the unauthorized use of intellectual property on the platform.

  • On February 12, 2026, ByteDance launched the latest 2.0 version of its Seedance AI video-making tool.
  • On February 16, 2026, Disney sent a cease-and-desist letter to ByteDance over the unauthorized use of its copyrighted characters.

The players

ByteDance

A Chinese technology giant that owns the Seedance AI video-making tool.

Disney

An American entertainment conglomerate that owns the intellectual property rights to various characters, including those from Marvel and Star Wars.

Motion Picture Association

A trade association that represents major US studios like Warner Bros Discovery, Paramount, and Netflix.

Sag-Aftra

The labor union representing actors in the United States.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The Japanese government has launched an investigation into ByteDance over potential copyright violations related to Seedance.

The takeaway

This case highlights the growing tension between the rapid development of generative AI tools and the need to protect intellectual property rights. As these technologies become more advanced and accessible, the entertainment industry is grappling with how to respond to the unauthorized use of their copyrighted characters and content.