Disney has issued a cease-and-desist letter to ByteDance, the parent company of TikTok and the AI video generator Seedance, after its new model, Seedance 2.0, produced AI-generated videos featuring iconic Disney characters such as those from Marvel and Star Wars. The move marks a stark contrast to Disney’s more collaborative approach with other AI companies, particularly OpenAI. The controversy erupted after a viral video on X (formerly Twitter) showcased a hyperrealistic AI-generated fight between Wolverine and Thanos, which garnered over 142,000 views in just two days. The clip was created using Seedance 2.0, a newly launched AI tool that allows users to generate videos from text prompts. The model’s ability to mimic Disney’s copyrighted characters without authorization sparked immediate backlash from the entertainment giant. In its letter, Disney accused ByteDance of using a “pirated library” of Disney’s intellectual property—drawn from franchises like Marvel and Star Wars—without permission, effectively treating Disney’s beloved characters as if they were public domain. The company argued that Seedance 2.0 was enabling the unauthorized reproduction, distribution, and creation of derivative works based on its protected content. This isn’t the first time Disney has taken legal action over AI-generated content. In June of the previous year, Disney and NBCUniversal sued Midjourney, an AI image generator, claiming the platform was mass-producing unauthorized copies of their copyrighted works. In September, Disney sent a cease-and-desist letter to Character.AI, and in December, it targeted Google over its AI image generator Nano Banana Pro, accusing the tech giant of large-scale IP theft. In each case, the companies involved removed Disney characters from their platforms. Despite its aggressive enforcement, Disney is not opposed to AI technology. The company’s strategy varies depending on the partner. When OpenAI unveiled Sora, its text-to-video AI model, in September, users quickly began sharing videos featuring Disney characters. Rather than issuing a legal notice, Disney chose negotiation. By December, the two companies had struck a three-year licensing agreement that allows Sora users, under certain guidelines, to incorporate 200 Disney characters into their AI-generated content. As part of the deal, Disney also committed to investing $1 billion in OpenAI. Disney CEO Bob Iger has consistently framed AI as an opportunity rather than a threat. During a recent earnings call, he emphasized that AI could enhance user engagement on Disney+, enabling fans to create and share short-form, user-generated content. The goal, he said, is to deepen audience connections through innovative, interactive experiences. While Disney has no current plans to launch its own AI video generator, the company sees AI as a powerful tool for storytelling and audience participation in the digital age.