ByteDance announced on Monday that it is taking steps to strengthen safeguards on its newly launched AI video generator Seedance 2.0 to prevent unauthorized use of intellectual property, following cease-and-desist letters from major U.S. studios, including Disney and Paramount Skydance.
The move comes just days after Seedance 2.0 went viral in China for generating highly realistic cinematic content—including scenes featuring Tom Cruise and Brad Pitt in a fight—drawing widespread comparisons to OpenAI’s Sora and DeepSeek’s video capabilities.
Disney’s letter, first reported by Axios on Sunday, accused ByteDance of using copyrighted characters from Star Wars, Marvel, and other franchises to train and power Seedance 2.0 without permission. A source familiar with the matter told Reuters that Disney alleged ByteDance had “pre-packaged” the model with a pirated library of characters, treating them as public-domain clip art. The letter claimed Seedance was reproducing, distributing, and creating derivative works featuring Spider-Man, Darth Vader, and other protected figures.
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Paramount Skydance sent a similar cease-and-desist letter, accusing ByteDance of “blatant infringement” of its intellectual property, according to Variety over the weekend. ByteDance’s statement did not name specific studios or elaborate on the measures being implemented, saying only: “We are taking steps to strengthen current safeguards as we work to prevent the unauthorized use of intellectual property and likeness by users.”
The rapid response reflects the high legal and reputational stakes for ByteDance as it pushes Seedance 2.0—praised for controllability, speed, production efficiency, and polished first-try results—into both domestic and international markets. The model’s viral success during the early days of Lunar New Year has amplified attention, but also exposed it to immediate scrutiny from Hollywood studios protective of their IP.
Disney’s action follows a pattern. In recent months, the studio sent similar demands to Character.AI to stop unauthorized use of its characters. Notably, Disney signed a licensing deal with OpenAI in December 2025, granting the U.S. company rights to use Star Wars, Pixar, and Marvel characters in its Sora video generator—highlighting a stark contrast in how studios are willing to engage with U.S. versus Chinese AI firms.
Seedance 2.0’s ability to generate realistic videos from text prompts, images, or reference clips has drawn praise from creators. Stockholm-based creative advertising executive Billy Boman told CNBC the progress in AI video generation over the past two years has been “nothing short of exceptional.” Hugging Face researcher Adina Yakefu called Seedance 2.0 “one of the most well-rounded video generation models I’ve tested,” noting its ability to deliver satisfying results on simple prompts with polished visuals, music, and cinematography.
However, the controversy over IP infringement underscores a broader challenge for Chinese AI video generators. Hollywood studios view unauthorized use of their characters, likenesses, and copyrighted material as a direct threat to licensing revenue and brand control. ByteDance’s open-ended prompt flexibility—allowing users to generate content featuring well-known figures—has fueled viral clips but also invited swift legal pushback.
The timing is particularly sensitive as Seedance 2.0’s release and rapid viral spread occurred just before and during Lunar New Year, a high-engagement period when family sharing and social media usage spike. ByteDance appears to have aimed to dominate the conversation during the holiday, but the IP allegations risk overshadowing the technological achievement.
ByteDance has not yet responded publicly to the specific allegations from Disney and Paramount Skydance. The company’s statement focused on future safeguards rather than addressing past or current content generated by users.
The episode highlights growing friction between Chinese AI labs and Western content owners. While ByteDance, Alibaba (with RynnBrain), and Kuaishou (with Kling 3.0) have made rapid advances in video generation and embodied AI, U.S. studios are increasingly willing to enforce IP rights aggressively—especially when models can produce high-quality derivative works featuring protected characters. Disney’s licensing deal with OpenAI contrasts sharply with its stance toward Chinese firms, suggesting studios may be more open to partnerships with U.S. companies that can offer enforceable compliance and revenue-sharing arrangements.
The path forward will likely involve tighter content filters, stricter prompt moderation, and potentially licensing negotiations if ByteDance seeks broader international adoption.
The controversy arises as China’s AI video generation sector heats up. Seedance 2.0, Kling 3.0, and emerging competitors are closing the gap with OpenAI’s Sora in realism, controllability, and creative flexibility—often at lower cost and with fewer restrictions.