ByteDance Restricts AI Video Tool After Hollywood Copyright Threats

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ByteDance, the Chinese tech giant behind TikTok, is implementing new safeguards for its AI-powered video generator, Seedance 2.0, following a wave of legal threats from major Hollywood studios. The tool, launched in China on February 12, quickly gained notoriety for its ability to create strikingly realistic images and videos based on simple text prompts – including unauthorized depictions of famous actors and copyrighted characters.

The Controversy: Unauthorized Use of Intellectual Property

The backlash began almost immediately after Seedance 2.0 went viral. The tool’s ability to generate deepfakes of celebrities, such as Brad Pitt and Tom Cruise in fictional scenarios, raised immediate copyright concerns. Disney, Paramount Skydance, and other companies sent cease-and-desist letters accusing ByteDance of training the AI on a “pirated library” of copyrighted material.

These complaints allege that Seedance 2.0 is essentially distributing creative works as “public-domain clip art,” directly violating intellectual property laws. Disney’s letter specifically highlighted the unauthorized use of characters from Star Wars and Marvel franchises. This isn’t an isolated incident: similar legal actions were taken against Character.ai in 2025 for similar copyright violations, and Disney is currently pursuing a case against Midjourney.

ByteDance’s Response and Industry Pressure

Facing mounting legal pressure, ByteDance issued a statement on Sunday acknowledging the concerns. The company said it is “strengthening current safeguards” to prevent unauthorized use of intellectual property and likeness by users. However, the specifics of these measures remain unclear. Previously, ByteDance had “paused the ability for users to upload images of real people,” but this action did not fully quell the industry’s outrage.

The dispute also extends to labor rights: SAG-AFTRA, the union representing on-screen actors, has condemned the unauthorized use of its members’ voices and likenesses. The union is demanding “responsible AI development,” a demand that appears to fall on deaf ears given ByteDance’s current trajectory.

Why This Matters: The Future of AI and Copyright

This conflict underscores a fundamental challenge in the rapidly evolving AI landscape: how to balance innovation with intellectual property rights. AI models like Seedance 2.0 are trained on massive datasets, often including copyrighted material without explicit permission.

This raises serious questions about fair use, the legality of training AI on existing works, and the potential for widespread copyright infringement. As AI-generated content becomes increasingly indistinguishable from human-created work, legal battles like these are likely to become more frequent and more complex.

The outcome of these disputes will set a precedent for how AI development is regulated – and whether creative companies can effectively protect their intellectual property in the age of generative AI.