ByteDance, TikTok’s parent company, has come under legal fire for allegedly allowing users of its platform to create videos featuring copyrighted characters. Disney and the Motion Picture Association (MPA) have accused ByteDance of using copyrighted work to train its AI, Seedance 2.0. The company has promised to strengthen its current safeguards and prevent the use of unauthorized content by its users. ByteDance under fire for AI copyright infringement ByteDance, the Chinese technology giant that owns TikTok, launched Seedance 2.0, a new artificial intelligence (AI) video-generation tool on February 12, 2026. The tool quickly went viral for its ability to create hyper-realistic videos from simple text prompts, but it appears to allow users to generate videos featuring copyrighted characters and famous actors without any licensing agreements. Disney sent a cease-and-desist letter to ByteDance on Friday, accusing the company of conducting a “virtual smash-and-grab” of their intellectual property. The company alleged that Seedance was prepackaged with a pirated library of characters, making them available to users as if they were public-domain clip art. Social media users have already shared clips generated by the tool showing very popular movie scenes, such as Spider-Man fighting Captain America and Star Wars characters Anakin Skywalker and Rey engaging in lightsaber battles. The Chairman of the Motion Picture Association (MPA), which represents major studios including Netflix, Universal, and Warner Bros.Discovery, and its CEO Charles Rivkin, stated that Seedance 2.0 engaged in “unauthorized use of U.S. copyrighted works on a massive scale” within a single day of its release. The Japanese government also launched an investigation into ByteDance after AI-generated videos of popular anime characters appeared online. Japan has historically maintained strict copyright laws to protect its multi-billion dollar anime industry. Can ByteDance fix its copyright issues? CNBC and the BBC report that a ByteDance spokesperson said that the company respects intellectual property rights and is listening to the concerns raised. “We are taking steps to strengthen current safeguards as we work to prevent the unauthorized use of intellectual property and likeness by users,” the spokesperson said. Currently, ByteDance has not provided details on how its planned safeguards will work, but the company claims it has already paused the ability for users to upload images of real people to the platform. Despite this, the tool continues to produce likenesses of celebrities. For example, Reuters reported that videos of Tom Cruise and Brad Pitt in a fight have been circulating in China. These “deepfake” style videos raise additional concerns for SAG-AFTRA, the union representing Hollywood actors. It has so far accused ByteDance of “blatant infringement” regarding the digital likenesses of its members. Part of the complaints is that ByteDance has remained silent on what information Seedance 2.0 was trained on to generate its videos, unlike some Western AI companies that have begun disclosing their data sources. Critics argue that the tool’s ability to perfectly replicate characters like Darth Vader suggests that the AI was trained directly on copyrighted films and television shows. Despite Disney’s legal fight with ByteDance, in late 2025, it signed a landmark $1 billion licensing deal with OpenAI to legally use 200 characters from Disney’s Pixar, Marvel, and Star Wars franchises to train its models. Disney’s fight seems to not be against the use of AI technology itself, but rather against the unauthorized use of its assets. The company also sued Midjourney and sent warnings to Character.AI in September 2025, demanding the removal of unauthorized chatbots based on its characters. Join a premium crypto trading community free for 30 days - normally $100/mo.
