@inthehands The arguments I've seen AI companies making in court is that the output is fully the responsibility of the user, not the LLM, in the same way Adobe isn't responsible when people make things in Photoshop.
However, this doesn't make logical sense with the Copyright Office's stance that AI-generated material is public domain because it has no human authorship. If it has no human authorship, how can the user be responsible for the output?
I think the real test won't happen until someone naively makes something infringing with probably Sora. "Naively" in that they didn't type "pikachu driving a racecar", maybe don't even know about Pokemon, but the LLM still ends up generating pikachu driving a racecar. It's hard to say the user is the infringing party when they have no knowledge of what they're infringing, but also it will be basically impossible to say infringement did not occur.