ByteDance Faces Legal Pressure from Disney Over AI Video Tool Seedance

Priya Sharma, Financial Markets Reporter
4 Min Read
⏱️ 3 min read

Chinese tech powerhouse ByteDance is taking significant steps to rein in its controversial AI video generation application, Seedance, after facing legal threats from Disney and concerns raised by other major players in the entertainment industry. The legal action comes as Seedance has gained traction online, with users praising its ability to produce lifelike video content. However, this success has not come without backlash, as several prominent studios accuse the platform of infringing upon their intellectual property rights.

The situation escalated when Disney issued a cease-and-desist letter to ByteDance, alleging that Seedance was operating with a “pirated library” containing characters from beloved franchises, including Marvel and Star Wars. Disney’s legal team accused the company of engaging in what they termed a “virtual smash-and-grab” of their intellectual property.

In response to the mounting pressure, a ByteDance spokesperson stated, “We respect intellectual property rights and have noted the concerns regarding Seedance 2.0.” The company is reportedly in the process of implementing enhanced safeguards to prevent users from unlawfully exploiting copyrighted materials, although further details on these measures remain undisclosed.

Seedance’s Controversial Popularity

Seedance, which allows users to generate videos based on brief text prompts, has seen a wave of content featuring recognisable characters, some of which have gone viral since the release of its latest version on 12 February. Clips allegedly created using the app depict iconic confrontations, such as Anakin Skywalker battling Rey and a showdown between Spider-Man and Captain America in New York City.

Seedance's Controversial Popularity

Despite the excitement surrounding the app, the fear of copyright infringement looms large. The Motion Picture Association, representing major studios like Warner Bros Discovery and Netflix, has demanded that Seedance “immediately cease its infringing activity.” The actors’ union, Sag-Aftra, has also accused the platform of blatant copyright violations, intensifying the scrutiny on ByteDance.

The legal woes facing Seedance are not isolated. The Japanese government has initiated an investigation into potential copyright breaches stemming from AI-generated videos featuring popular anime characters. This follows a broader trend, as other generative AI tools, including image generators, have also faced legal action from established media companies. Notably, Disney and NBCUniversal are pursuing a lawsuit against Midjourney, alleging that its platform produces “endless unauthorised copies” of copyrighted works.

In an additional move, Disney has requested that Google restrict the generation of its characters across its AI platforms, signalling a coordinated effort among entertainment giants to safeguard their intellectual property in the face of rapidly evolving technology.

Why it Matters

The ongoing legal battles surrounding Seedance highlight a critical juncture for the intersection of technology and intellectual property rights. As AI tools continue to evolve and democratise content creation, the potential for copyright infringement grows, posing significant challenges for traditional media companies. The outcome of these disputes could shape the future of AI-generated content and set important precedents for how intellectual property laws are applied in the digital age. As the industry grapples with these issues, the balance between innovation and the protection of creative works remains precarious.

Why it Matters
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Priya Sharma is a financial markets reporter covering equities, bonds, currencies, and commodities. With a CFA qualification and five years of experience at the Financial Times, she translates complex market movements into accessible analysis for general readers. She is particularly known for her coverage of retail investing and market volatility.
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