Unlike responsive US AI companies, Chinese firms like ByteDance are ignoring copyright concerns with models like SeedDance 2.0. This has forced Hollywood institutions to shift strategy from legal challenges to public pressure campaigns in an attempt to protect their intellectual property.

The development of advanced surveillance in China required training models to distinguish between real humans and synthetic media. This technological push inadvertently propelled deepfake and face detection advancements globally, which were then repurposed for consumer applications like AI-generated face filters.

ByteDance's SeedDance 2.0 model integrates audio generation directly with video, a novel approach that suggests China may be starting to leapfrog the US in specific AI capabilities. This challenges the common narrative that China is only a fast follower in the AI race.

The geopolitical competition in AI will decide the economic value of intellectual property. If the U.S. approach, which respects copyright, prevails, IP retains value. If China's approach of training on all data without restriction dominates the global tech stack, the value of traditional copyright could be driven toward zero.

Hollywood studios like Disney have lost their leverage over China. With the Chinese box office now dominated by domestic films, cease-and-desist letters against AI tools like ByteDance's C-Dance 2.0 are largely symbolic. Without US government intervention, Chinese firms can effectively treat foreign IP as "free public domain clip art."

Unlike the US's voluntary approach, Chinese AI developers must register their models with the government before public release. This involved process requires safety testing against a national standard of 31 risks and giving regulators pre-deployment access for approval, creating a de facto licensing regime for consumer AI.

China's national AI strategy is explicit. Stage one is using AI for Orwellian surveillance and population control within its borders. Stage two is to export this model of technological authoritarianism to other countries through initiatives like the "Digital Silk Road," posing a major geopolitical threat.

While US AI companies navigate complex licensing deals with IP holders, Chinese firms like ByteDance appear to be using copyrighted material, such as specific actors' voices, without restriction. This lack of legal friction allows them to generate highly specific and realistic content that Western labs are hesitant to produce.

The AI lobby's argument to ignore IP rights to outpace China is shortsighted. The US's global strength is built on robust IP protection. Eroding this standard domestically jeopardizes the ability to protect American innovations, like OpenAI's own models, abroad. Respecting IP is the long-term strategic play.