ByteDance to Limit AI Video App After Disney's Legal Threat

By Fulqrum AI

Monday, February 16, 2026 · 3 min read · 1 sources

ByteDance, the parent company of TikTok, has announced plans to restrict its AI-powered video editing app, Seedance, due to a legal threat from Disney. The app's users had been creating and sharing videos featuring Disney's intellectual property, including Spider-Man. The move aims to avoid a potential copyright infringement lawsuit.

ByteDance, the Chinese technology giant behind the popular social media app TikTok, has decided to limit the functionality of its AI-powered video editing app, Seedance, following a legal threat from The Walt Disney Company. The app, which allows users to create and edit videos using artificial intelligence, had been used to generate content featuring Disney's intellectual property, including characters from the Marvel Cinematic Universe such as Spider-Man. According to reports, Disney's legal team had been monitoring the situation and had issued a warning to ByteDance, citing potential copyright infringement. The move to restrict Seedance's functionality is seen as a preemptive measure to avoid a potential lawsuit. The issue began when Seedance users started creating and sharing videos featuring Disney's characters, which quickly went viral on social media platforms. While the videos were created by users and not by ByteDance itself, the company's AI technology had enabled the creation of the content. Disney, which is notoriously protective of its intellectual property, took notice and decided to take action. ByteDance's decision to limit Seedance's functionality is a significant move, as it highlights the challenges of balancing user creativity with intellectual property rights in the age of AI-generated content. The company has not disclosed the exact nature of the restrictions, but it is likely that the app's users will no longer be able to create and share videos featuring Disney's characters. The incident also raises questions about the responsibilities of technology companies when it comes to protecting intellectual property rights. While ByteDance did not create the content in question, its AI technology enabled its creation and dissemination. This has sparked a debate about the role of technology companies in policing user-generated content and ensuring that it does not infringe on intellectual property rights. In a statement, a ByteDance spokesperson said that the company takes intellectual property rights seriously and is committed to working with content owners to ensure that their rights are protected. The spokesperson also emphasized that Seedance's AI technology is designed to be a creative tool, and that the company encourages users to respect the intellectual property rights of others. The incident is also a reminder of the challenges of regulating AI-generated content. As AI technology becomes increasingly sophisticated, it is likely that we will see more cases of AI-generated content raising intellectual property concerns. Governments and regulatory bodies will need to develop clear guidelines and regulations to address these issues and ensure that technology companies are held accountable for protecting intellectual property rights. In the meantime, ByteDance's decision to restrict Seedance's functionality is seen as a pragmatic move to avoid a costly lawsuit. The company will likely continue to work with Disney and other content owners to ensure that its AI technology is used in a way that respects intellectual property rights.

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