ByteDance Faces Copyright Storm Over Seedance 2.0 AI Tool
ByteDance is facing mounting legal pressure from major Hollywood studios over its artificial intelligence video generator, Seedance 2.0, which allows users to create realistic videos from simple text prompts. The tool, currently available only in China, has drawn widespread condemnation for allegedly enabling the unauthorized reproduction of copyrighted characters, storylines, and celebrity likenesses at scale.
The Motion Picture Association, which represents major studios including Netflix, Disney, Universal, Sony, Warner Bros. Discovery, and Paramount Skydance, publicly demanded that ByteDance immediately halt what it described as infringing activity. The group stated that within a single day of operation, Seedance 2.0 had facilitated unauthorized use of American copyrighted works on a massive scale, arguing that the platform lacks meaningful safeguards against intellectual property theft.
Disney was among the first studios to take direct legal action, sending a cease-and-desist letter accusing ByteDance of effectively pre-packaging Seedance with pirated libraries of copyrighted characters. Paramount Skydance followed with similar accusations. Warner Bros. Discovery also sent a cease-and-desist letter, adding to the chorus of studios taking formal legal steps against the Chinese tech giant.
Netflix escalated the situation further by becoming the first studio to explicitly threaten litigation, giving ByteDance three days to respond. The streaming giant identified specific instances of infringement involving Stranger Things, Squid Game, Bridgerton, and KPop Demon Hunters. Among the violations cited were unauthorized reproductions of monsters from the Stranger Things finale, costumes from Bridgerton Season 4, and crossover content inserting real-world public figures into the Squid Game environment. Netflix argued preemptively that a fair use defense would not apply, as the tool creates competing commercial products that closely replicate original works.
Actors union SAG-AFTRA also condemned Seedance 2.0, stating that the platform enables unauthorized use of its members’ voices and likenesses, undermining the ability of human talent to earn a livelihood. The union called the tool’s operation a disregard for law, ethics, and industry standards.
ByteDance acknowledged the concerns and stated it is taking steps to strengthen safeguards to prevent unauthorized use of intellectual property and likenesses by its users. However, those assurances have not satisfied the studios, with Netflix and Warner Bros. both proceeding with legal notices even after ByteDance’s pledge.
