Disney accuses ByteDance of 'virtual smash-and-grab' when using copyrighted works to train its AI

Engadget

by Jackson Chen

February 14, 2026

AI-Generated Deep Dive Summary

Disney has filed a legal complaint against ByteDance, accusing the company of using Disney’s copyrighted characters to train its AI without authorization. In a cease-and-desist letter obtained by Axios, Disney claims that ByteDance’s Seedance 2.0 tool uses pirated libraries of Disney’s intellectual property, including iconic characters from Star Wars, Marvel, and other franchises. The letter highlights examples of videos featuring Spider-Man, Darth Vader, and Peter Griffin, arguing that Disney’s IP was exploited as if it were free public domain content. This isn’t the first time Disney has taken legal action against AI companies. Earlier in 2023, Disney sent a similar cease-and-desist to Character.AI for using its copyrighted characters without permission. The company also accused Google of copyright infringement when training its AI models, showing a pattern of enforcement regarding the use of Disney’s IP in AI development. The case raises important questions about the balance between innovation and intellectual property rights in the age of generative AI. While ByteDance’s Seedance 2.0 has garnered praise for its AI capabilities, Disney’s actions underscore the importance of protecting creative content from unauthorized use. This legal battle could set a precedent for how copyrighted material is handled in AI training, influencing both startups and tech giants. Disney’s approach to AI highlights its dual strategy: while it partners with companies like OpenAI to leverage AI for creative purposes, it also remains vigilant in defending its intellectual property. The outcome of this case could shape the future of AI development, particularly in industries reliant on copyrighted content.

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Originally published on Engadget on 2/14/2026