A fresh clash between Hollywood and Big Tech has erupted after the launch of Seedance 2.0, a new artificial intelligence video model developed by ByteDance. Entertainment industry groups allege that the tool is enabling large-scale copyright violations by allowing users to generate short videos featuring well-known actors and fictional characters without authorization.
Seedance 2.0, unveiled last week, allows users to create videos of up to 15 seconds using simple text prompts similar in concept to OpenAI’s video model Sora. The tool is currently available to Chinese users through ByteDance’s Jianying app and is expected to roll out globally via its popular editing platform CapCut.
However, critics argue that the platform lacks adequate safeguards to prevent misuse of copyrighted characters and celebrity likenesses. Social media users have already shared AI-generated clips depicting well-known Hollywood actors in fictional scenarios, intensifying concerns across the film industry.
The Motion Picture Association (MPA) issued a sharp response, with its leadership accusing ByteDance of facilitating unauthorized use of American intellectual property. Industry representatives claim that Seedance 2.0 has enabled the reproduction of protected works at scale without meaningful restrictions.
The Human Artistry Campaign backed by several creative unions described the model as a threat to artists globally. Meanwhile, actors’ union SAG-AFTRA said it supports studios in condemning what it calls blatant infringement through AI-generated content.
Major studios have begun legal action. The Walt Disney Company reportedly issued a cease-and-desist notice after AI-generated clips surfaced featuring characters from its franchises such as Spider-Man, Darth Vader, and Grogu (popularly known as Baby Yoda). According to reports, Disney accused ByteDance of digitally reproducing and distributing derivative versions of its intellectual property without permission.
Other studios are following suit. Paramount Global has also reportedly sent a legal notice, alleging that content produced through Seedance closely resembles its films and television shows, both visually and audibly.
Interestingly, Hollywood’s stance on AI is not entirely oppositional. While Disney has raised concerns with AI companies over intellectual property misuse, it has also entered into a licensing agreement with OpenAI signaling that studios are open to collaboration when intellectual property rights are respected.
Indian Entertainment Industry Watching Closely
The controversy has significant implications for India’s fast-growing film and streaming ecosystem. With Bollywood, regional cinema industries, and OTT platforms expanding globally, concerns over AI-generated misuse of intellectual property are increasingly relevant.
Production houses in Mumbai and Hyderabad are already experimenting with AI for post-production, dubbing, and visual effects. However, legal experts warn that India’s copyright enforcement framework may struggle if similar AI tools begin generating unauthorized content featuring Indian actors or iconic characters.
Organizations such as the Film Federation of India and leading producers’ guilds are reportedly studying global developments closely. Industry insiders say there is growing urgency to update digital copyright safeguards and clarify how Indian law applies to AI-generated derivative works.
At the same time, Indian tech startups working in generative AI see opportunity. If properly regulated, AI video tools could significantly reduce production costs for advertising, education, and regional content creation. The challenge will be balancing innovation with intellectual property protection.
Legal scholars note that India’s Copyright Act, last significantly amended in 2012, did not anticipate generative AI at this scale. Policymakers may now face pressure to define clearer rules around training data, likeness rights, and synthetic media.
The Seedance 2.0 controversy reflects a larger global debate: how to encourage AI innovation without undermining the creative industries that generate original content. While tech companies argue that generative AI represents the future of media creation, film studios and artist unions insist that intellectual property protections remain non-negotiable.
As AI video tools become more sophisticated and accessible, regulators in the U.S., China, and India will likely face mounting pressure to create clearer legal frameworks. For now, the dispute between Hollywood and ByteDance may serve as a test case for how the next era of digital creativity will be governed.
