Major Hollywood studios, including Disney and Paramount, have sent cease-and-desist letters to ByteDance regarding its AI video generator, Seedance 2.0, launched on February 12, 2026. This tool, which creates ultra-realistic AI-generated videos, has sparked outrage for allegedly infringing copyright by using recognizable characters from iconic franchises. Disney demands immediate action to block training on its IP such as Spider-Man and Baby Yoda, labeling the situation a “willful smash-and-grab” of its creative assets. Meanwhile, Paramount similarly claims its franchises are under attack and seeks to prevent future unauthorized use. The Motion Picture Association raised alarms over the threats to creator rights, urging regulatory collaboration. Unions like SAG-AFTRA have condemned the exploitation of actors’ likenesses. As the conflict escalates, experts warn that unresolved issues could lead to significant lawsuits, with implications for the $500 billion entertainment industry and the future of AI creativity amidst calls for ethical standards.
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