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Why Disney is at war with TikTok’s owner over stolen AI characters

The entertainment giant described the infringement as a "virtual smash-and-grab" of its most valuable intellectual property.

byEmre Çıtak
February 16, 2026
in Industry
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Disney sent a cease-and-desist letter to ByteDance, accusing the company of using copyrighted Disney characters to train its Seedance AI tool without permission. The Walt Disney Company alleges ByteDance developed its AI video generator using a “pirated library” of protected content. The dispute centers on the unauthorized use of Disney’s extensive intellectual property portfolio for AI training purposes, which Disney contends constitutes a violation of copyright law.

Disney characterized ByteDance’s actions as a “virtual smash-and-grab,” asserting the company treated Disney’s characters as “free public domain clip art.” The cease-and-desist letter, obtained by Axios, contained specific examples of Seedance-generated videos. These instances featured well-known characters such as Spider-Man and Darth Vader, alongside Peter Griffin, drawing from franchises including Marvel, Star Wars, and Family Guy. The letter detailed how the AI tool replicated these protected figures without authorization.

ByteDance released Seedance 2.0 on Thursday, earning immediate praise for its AI video-generation capabilities. However, the release also drew swift backlash from Hollywood studios concerned about copyright infringement. The tool’s rapid rise in the AI video market placed it directly in the sights of Disney, one of the world’s largest media companies. This scrutiny occurred shortly after the tool’s public debut, highlighting the legal risks facing new AI products.

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This action represents a continued pattern of legal enforcement by Disney regarding AI training data. In September, Disney sent a cease-and-desist letter to Character.AI for a similar copyright offense involving the use of its characters. A few months later, Disney accused Google of copyright infringement concerning the training of its AI models. These moves demonstrate Disney’s aggressive stance against unauthorized use of its content by AI developers.

Conversely, Disney has pursued cooperative arrangements with select technology firms. The company recently entered a three-year licensing agreement with OpenAI. This partnership permits the AI giant to generate images and videos using Disney’s intellectual property, establishing a clear distinction between licensed collaboration and alleged infringement. This agreement highlights a divergence in Disney’s strategy, favoring authorized usage over unauthorized training.


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Tags: ByteDanceDisney

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