Netflix Threatens ByteDance With “Immediate Litigation” Over Seedance 2.0 AI Content

Netflix Pushes Back Against AI Video Generator Seedance 2.0

Hollywood’s fight over the future of AI-generated video content escalated on February 18, 2026, when Netflix sent a stern legal warning to ByteDance — the Chinese tech giant best known as the owner of TikTok — threatening immediate litigation over its new AI video-making tool Seedance 2.0.

In a cease-and-desist letter, Netflix’s legal team described Seedance 2.0 as a “high-speed piracy engine,” claiming it was generating mass quantities of unauthorized clips using iconic characters and scenes from its most popular shows. The company demanded that ByteDance remove any Netflix content from Seedance’s training datasets and put safeguards in place to prevent further infringements.

What Is Seedance 2.0 and Why It’s Controversial

Seedance 2.0 is an advanced AI video generator that can produce cinematic-quality clips from simple text prompts. While it’s currently available mainly in China, videos created with the tool have circulated widely online. According to Netflix, these AI videos include detailed reproductions of popular series like Stranger Things, Squid Game, Bridgerton, and KPop Demon Hunters, even replicating costumes and specific narrative moments.

Netflix’s letter argued that such output goes beyond “fair use,” warning that using copyrighted works to create similar or competitive content without permission is illegal — and not protected by existing copyright exceptions. The streaming giant gave ByteDance three days to comply with its demands before pursuing legal action.

ALSO CHECK: Chris Pratt Reportedly “Panicking” as Recent Films Underperform at the Box Office

Industry-Wide Backlash Against AI Copyright Issues

Netflix isn’t alone in its concerns. Major studios like Walt Disney Company, Paramount, and Warner Bros. have already issued similar cease-and-desist notices to ByteDance over Seedance 2.0, accusing the AI tool of generating videos using their protected content without permission.

Hollywood groups and unions have also weighed in, condemning the tool for its potential to violate copyright law and exploit the likenesses of actors without consent. The Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) and the Motion Picture Association both criticized Seedance 2.0 for undermining creators’ rights and the livelihoods of performers.

ByteDance Responds and Vows Safeguards

In response to the growing backlash, ByteDance issued a statement saying it respects intellectual property rights and is working on strengthening safety measures to prevent unauthorized use of copyrighted material and actors’ likenesses. However, so far, those assurances haven’t fully satisfied Netflix or the other studios involved.

The situation highlights a broader industry debate about how generative AI tools should be regulated — especially as they become more capable of producing realistic video content that closely mimics existing films and shows without permission.

What This Means for Entertainment and AI

The clash between Netflix and ByteDance underscores a major inflection point in entertainment technology. With AI tools like Seedance 2.0 able to recreate and remix popular intellectual property, studios are becoming increasingly protective of their content libraries. This legal fight could set important precedents for how copyright law applies to AI-generated works in the future — shaping the boundaries of creative freedom, innovation, and artistic ownership.