ByteDance, owner of TikTok, will limit its AI video tool Seedance 2.0 after Disney threatened legal action. Seedance 2.0, launched last week, creates realistic movie star videos from short text prompts. Disney sent a cease-and-desist letter accusing ByteDance of using a "pirated library" with characters from Marvel and Star Wars. Disney's lawyers called it a "virtual smash-and-grab" of intellectual property. ByteDance told the BBC it "respects intellectual property rights" and is "taking steps to strengthen current safeguards" to stop unauthorized use but gave no further details. Hollywood is concerned as Seedance models videos easily, sparking fears about copyright abuse. Writer Rhett Reese warned it's "likely over for us" after seeing AI-created clips of stars like Tom Cruise and Brad Pitt. The Motion Picture Association called ByteDance's use of copyrighted works "unauthorised on a massive scale." Actor group Sag-Aftra also condemned the tool for "blatant infringement." This is part of growing Hollywood anxiety over AI's role in entertainment. Creators want compensation and proper licenses for AI use of their work. Previously, Disney and NBCUniversal sued the AI image generator Midjourney for similar copyright concerns. At the same time, Disney invested $1 billion in OpenAI and licensed characters for AI projects, showing a mixed approach. ByteDance and Disney declined further comment.