As we know, the Writers Guild of Hollywood was on strike, and one of the grievances was the use of their copyright works to train the LLMs. The strike ended with a new contract which carries an AI clause that allows explicitly, as per reports, the LLMs to use scripts written by members of the Writers Guild. However, the permission must be purchased from the writer, and not simply taken.

Users later create fan fiction using featuring characters from a particular TV series or film. Authors do not want to sue the readers for fan fiction. On the contrary fan fiction excites the audience. However, fan fiction is created by human beings working at a human pace. Amazon restricts authors of self-published books to not more than three a day in Kindle store. There is possibility of people uploading AI-generated material. Such material is created at unhuman pace.

There is a Google case precedent when the US Court of Appeals allowed it to scan copyrighted works into its database by invoking the doctrine of fair use. The court held by and large this generates only snippets for the users.

LLM companies can argue that they have just developed a tool, and are not responsible for its misuse.

Generative AI poses a risk of derivative works. An author can create new stories of the same characters for his or her excited audience. However, what if such stories are generated without any practical limit due to generative AI?

AI-generated material is not entitled to copyright protection (one federal court). Human authorship is the essence of copyright. Non-human actors cannot be incentivized by legal protection, especially of the copyright law.

Algorithms too these days smartly respond to certain queries saying I am sorry but I am not permitted to create fictional works derived from the copyrighted works.

LLMs contend that the use of copyright works for training is fair use, and any other rule that bans this will set back AI research. The copyright system should not put undue burdens on AI, and allow it to continue the innovation to proceed.