China's Coordinated Assault on U.S. Intellectual Property Demands Robust Government Response

In February, ByteDance launched Seedance 2.0, an AI video generator capable of producing hyperrealistic clips featuring iconic characters and celebrities without authorization. Within hours, the tool generated scenes such as Brad Pitt fighting Tom Cruise on a rooftop, Darth Vader dueling Deadpool aboard a starship, and fabricated finales of Game of Thrones, alongside unauthorized depictions of Shrek, Spider-Man, and the Stranger Things children. The Motion Picture Association (MPA) condemned this as massive-scale copyright infringement. Major studios including Disney, Warner Bros., Netflix, Paramount, and Sony issued cease-and-desist letters, leading ByteDance to suspend the model’s global rollout amid mounting pressure.

This incident, while audacious, reflects a broader pattern. Prior to Seedance, OpenAI alerted Congress that China’s DeepSeek employed sophisticated “distillation” techniques to extract capabilities from its AI models. Distillation allows smaller models to replicate the functions of larger ones by illicitly copying their outputs. Subsequently, Anthropic accused DeepSeek, Moonshot AI, and MiniMax of generating over 16 million interactions with its Claude system using approximately 24,000 fraudulent accounts. These actions aimed to appropriate the reasoning, coding, and tool-use capabilities developed at great expense by American AI labs.

The White House has acknowledged these threats. The Office of Science and Technology Policy recently committed to collaborating with companies to defend against such intellectual property (IP) attacks.

Viewed broadly, China is waging a two-front campaign against U.S. IP. On one front, Chinese AI laboratories are extracting trade secrets and proprietary technologies from leading American tech firms. On the other, Chinese platforms are exploiting the creative works of American artists, writers, filmmakers, and musicians without permission. Both sectors represent areas of American global leadership and are under sustained assault.

This strategy is not new. For decades, China has targeted U.S. dominance in sectors such as semiconductors, pharmaceuticals, and aerospace through tactics including forced technology transfers and joint ventures that often failed to deliver promised market access. However, the AI era has intensified the pace and boldness of these actions. ByteDance and Minimax did not seek licenses from Disney for character use; DeepSeek and Moonshot AI did not negotiate with Anthropic for access to Claude’s capabilities. Instead, they directly appropriated American innovations, extending their reach beyond China’s borders.

This evolving threat calls for urgent attention from Washington. Historically, Silicon Valley and Hollywood have clashed over domestic AI use of copyrighted materials. Yet China’s systematic IP theft reveals their shared vulnerability: both lead the world in their fields, both are being robbed, and both require a government prepared to act decisively.

Early indications show that private legal measures can influence outcomes. Cease-and-desist letters from studios compelled ByteDance to delay Seedance’s global launch and implement content filters. If individual lawsuits can prompt such responses, a coordinated, government-led strategy could be far more effective.

Available tools include targeted sanctions, trade enforcement actions, market access restrictions, and diplomatic pressure via international IP frameworks. The U.S.-China summit follow-up negotiations present an opportunity for the White House to address AI-related IP violations explicitly. Concurrently, Congress should continue investigating foreign AI firms’ IP theft and distillation practices.

Some policymakers advocate loosening domestic copyright protections to grant American tech companies broad “fair use” rights for AI training. However, weakening IP rights domestically undermines U.S. credibility in demanding respect for its IP abroad. Protecting American creators’ rights at home is essential to maintaining standing in international IP enforcement.

The Trump administration has pledged a tough stance on China and a pro-worker approach to AI. These commitments intersect here. Copyright-protected industries contribute over $2 trillion to the U.S. GDP, support millions of jobs, and generate a $37 billion trade surplus. Simultaneously, American AI firms represent the forefront of global technological competition.

Both sectors merit robust defense against the shared threat of Chinese IP theft. This requires a government willing to confront the challenge strategically, leveraging the full scope of American economic and diplomatic power to protect innovation and creativity.

Fred Upton served 36 years in Congress, including as chairman of the House Energy and Commerce Committee. Mignon Clyburn is a former commissioner and acting chair of the Federal Communications Commission.