legal

After the fake video of Tom Cruise and Brad Pitt fighting went viral, a surge of AI-generated content from Seedance 2.0 flooded the internet.

Some fans were using the new AI video generator, backed by ByteDance, to refashion the finales for shows like “Game of Thrones” and “Stranger Things.” Others created battle scenes between iconic superheroes like Wolverine and Superman or between a Transformer and Godzilla.

As these Seedance videos amassed millions of views on social media, industry guilds like SAG-AFTRA and the Motion Picture Assn. have criticized the AI platform that was launched last week. Now, many major Hollywood studios are threatening to take legal action against ByteDance, the same Chinese parent that oversees TikTok.

Netflix, Warner Bros. Discovery, Paramount and Disney have all sent individual cease and desist letters, detailing the unauthorized reproduction of each of the studios’ copyrighted intellectual property.

Netflix and Warner Bros. Discovery were the latest studios to send cease and desists letter to ByteDance on Tuesday.

Netflix calls Seedance “a high-speed privacy engine” and says that they “will not stand by and watch ByteDance treat our valued IP as free, public domain clip art,” as stated in the letter. The streamer also cites the illegal use of sets derived from “Squid Game,” costumes from “Bridgerton” and character design from “KPop Demon Hunters.”

Warner Bros. Discovery looks to repurposed content, including characters from the “Harry Potter” and “Lord of the Rings” franchises, as well as superheroes like Batman, as “ blatant infringement” by ByteDance. The studio argues that it’s clear that their AI technology was trained on Warner Bros. copyrighted material “without authorization.”

“But the users are not the ones at the root cause of the infringement; they are merely building on the foundation of infringement already laid by ByteDance as Seedance comes pre-loaded with Warner Bros. Discovery’s copyrighted characters,” wrote the studios’ legal executive vice president Wayne Smith. “That was a deliberate design choice by ByteDance.”

Disney and Paramount were the first of the studios to call out ByteDance, sending their letters last Friday and Saturday. Disney accuses ByteDance of loading its Seedance service “with a pirated library of Disney’s copyrighted characters from Star Wars, Marvel, and other Disney franchises.”

“Over Disney’s well-publicized objections, ByteDance is hijacking Disney’s characters by reproducing, distributing, and creating derivative works featuring those characters. ByteDance’s virtual smash-and-grab of Disney’s IP is willful, pervasive, and totally unacceptable,” Disney’s attorney David Singer wrote, per Axios.

Paramount’s cease and desist letter was reviewed by The Times and makes similar assertions about ByteDance’s unapproved use of copyrighted material.

ByteDance has since pledged to implement more safeguards to protect copyrighted material in response to these letters.

“ByteDance respects intellectual property rights and we have heard the concerns regarding Seedance 2.0,” a company spokesperson said in a statement shared with CNBC. “We are taking steps to strengthen current safeguards as we work to prevent the unauthorized use of intellectual property and likeness by users.”

But with or without the safeguards, Dan Purcell, chief executive of Midnight Labs, an AI-powered company that specializes in IP protection for high-value entertainment, said these letters might be a bit of a delayed reaction from the studios.

“Once synthetic content is generated, it spreads instantly and at a massive scale. By the time lawyers engage, the damage is done,” said Purcell in a statement. “The only path forward is strict licensing, real-time enforcement, and consequences that actually hurt. Reactive letters won’t fix this. The industry needs to move at the speed of AI — not the speed of litigation.”

Jan. 29 (UPI) — Chinese e-commerce platform Temu has taken its dispute with Mercado Libre to federal court after Argentina’s largest online marketplace accused it of unfair competition.

Mercado Libre filed a complaint in August 2025 with Argentina’s Secretariat of Industry and Commerce, alleging Temu violated Commercial Fairness Decree No. 274/2019, which governs truthful advertising and fair competition in the country.

After reviewing the filing, the National Directorate of Policies for the Development of the Domestic Market opened an investigation and ordered Temu to suspend digital advertising and promotions deemed misleading.

In response, Temu turned to federal court Wednesday to try to halt the administrative measure and maintain its operations in Argentina, Argentine daily La Nacion reported.

According to the complaint, the company founded by Argentine entrepreneur Marcos Galperin challenged Temu’s commercial strategy, which Mercado Libre said relies on extreme discounts and promotions that are not met under the conditions advertised, local outlet Ambito reported.

Among the main allegations are discounts ranging from 80% to 100% that apply only if users meet additional requirements, such as minimum purchase amounts, buying other products or completing purchases within the app.

Mercado Libre also accused Temu of what it described as “misleading gamification,” using games and interactive features that promise prizes or free products, but in practice impose increasingly complex and unclear conditions.

The dispute is now under the jurisdiction of the National Chamber of Appeals in Civil and Commercial Federal Matters, which must determine the next steps in the case, Infobae reported.

Temu rejected the allegations and said its business model is transparent and that prices, discounts and conditions are clearly disclosed to users, which the company contended rules out consumer deception.

Mercado Libre said the complaint is not related to Argentina’s opening of imports, a policy it supports. The company noted that it also offers imported goods through its international purchases category and competes in what it described as a dynamic and open market with both local and global players.

The legal battle unfolds amid rapid growth in cross-border e-commerce in Argentina. Data cited in the case show door-to-door purchases through platforms such as Temu and Shein posted increases close to 300% year over year, driven by low prices, direct shipping and intensive social media marketing.

The expansion of the Chinese platforms has revived debate over the regulatory framework for digital commerce and competition between domestic and foreign companies, Perfil reported.

Mercado Libre executives reiterated the need for rules that are “the same for everyone,” as the case becomes a key recent precedent on competition and advertising in Argentina’s e-commerce sector.