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Videos featuring Spider-Man and other characters which are Disney's intellectual property have gone viral since Seedance's update.
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In the last few days, videos made using the latest version of the app Seedance have proliferated online. Many have been lauded for their realism.
But the trend has also sparked alarm from several Hollywood studios that have accused the AI platform's makers of copyright infringement.
On Friday, Disney sent a cease-and-desist letter to ByteDance accusing it of supplying Seedance with a "pirated library" of the studio's copyrighted characters, including those from Marvel and Star Wars.
Disney's lawyers accused ByteDance of committing a "virtual smash-and-grab" of their intellectual property, including superheroes from Marvel, Star Wars and various cartoons.
On Monday ByteDance told the BBC that the company "respects intellectual property rights and we have heard the concerns regarding Seedance 2.0."
"We are taking steps to strengthen current safeguards as we work to prevent the unauthorised use of intellectual property and likeness by users."
ByteDance did not respond to questions asking for details on the safeguards it plans to implement.
Like other generative-AI tools, Seedance can create videos based on short text prompts.
Many of Seedance's clips are based on real actors and shows and some have gone viral since the launch of its latest 2.0 version on 12 February.
The BBC has found clips online said to have been generated by Seedance showing Star Wars characters Anakin Skywalker and Rey battling with their lightsabres, and Spider-Man fighting Captain America on the streets of New York.
The company has not disclosed what data it uses to train Seedance.
ByteDance had previously said the product had already paused the ability for users to upload images of real people.
The company also said it respects intellectual property rights and copyright protections, and takes any potential infringement seriousl
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