Hollywood has been wrestling with AI’s growing grip on storytelling, and the debate over real versus fake content is reaching a boiling point. As generative AI tools grow more sophisticated, the entertainment industry has found itself walking a tightrope between innovation and intellectual property protection. Studios that once embraced streaming disruption are now confronting a new frontier, where algorithms can remix decades of cinematic legacy in seconds.

That tension flared when ByteDance's Seedance 2.0, which can create hyper-realistic clips from simple text prompts, made waves online, including viral footage mimicking famous actors and copyrighted characters. This led Disney, Warner Bros., and Paramount to each send cease-and-desist letters to ByteDance, alleging unauthorised use of their copyrighted characters and content in AI-generated videos.

And now, taking the helm forward is Netflix, which has joined the other streamers in this war against AI. 

Netflix has raised a red flag at ByteDance’s AI tool, Seedance 2.0, which is churning out hyper-realistic videos of copyrighted characters and scenes, sparking serious concerns. In a cease-and-desist letter, Netflix demanded that its content be pulled from training datasets and called for safeguards to stop further misuse. To which ByteDance quickly stepped in to address the growing concerns around Seedance AI.

“Netflix will not stand by and watch ByteDance treat our valued IP as free, public domain clip art,” wrote Mindy LeMoine, director of litigation, as reported by Variety. To this, ByteDance has been given three days to respond to. 

In the letter, Netflix has accused the Chinese company of enabling infringement of Stranger Things, KPop Demon Hunters, Squid Game and Bridgerton. Netflix’s letter alleges that Seedance AI generated unauthorized videos recreating Bridgerton Season 4’s masquerade ball, including detailed depictions of Sophie Baek’s 'Lady in Silver' gown.

They have also pointed in the letter to the AI reproductions of iconic cast members and Stranger Things creatures like the Demogorgons and the Mind Flayer, some of which were reportedly promoted using official hashtags, as reported by the outlet.

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While ByteDance is now surrounded by major streamers from left to right, it has quickly stepped in to address the growing concerns around Seedance AI.

After the stir over Seedance 2.0, ByteDance moved quickly to address industry concerns. The Chinese tech giant assured media outlets that it would tighten safeguards on its AI tool to prevent unauthorized use of copyrighted material and actors’ likenesses. While Disney, Warner Bros., and Netflix had already raised alarms over the viral clips, ByteDance insisted it was taking proactive steps to curb misuse and strict AI protocols. Hollywood’s pushback, however, is not limited to studios alone.

SAG‑AFTRA, the US union representing actors and on-screen talent, has raised alarms over the unauthorised use of its members’ voices and likenesses in AI-generated clips. The union demanded responsible AI development, highlighting that tools like ByteDance’s Seedance AI should stop exploiting performers without consent, adding another layer of pressure on the Chinese tech giant.

Hollywood is clearly drawing a hard line on AI-generated clips with its anti-AI campaigns, putting tools like Bytedance’s Seedance 2.0 under scrutiny and putting consent, copyright, and the future of storytelling into the spotlight.

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What are your thoughts on ByteDance's Seedance  AI viral clips? Let us know in the comments below.