I don’t think it’s a big deal if your AI spits out copyrighted images. My scanner, camera phone, photoshop etc can also easily spit out copyrighted images. It’s ok if I just print them out for my wall at home, but if I try to sell them it becomes a problem.
So then I guess these new AI models are only problematic if someone tries to sell them (as its essentially selling copyrighted works) but an open source model is probably fair game. Individuals can use it, but if you try to monetize you better not be infringing.
Seems like something like YouTube’s content ID solution for detecting copyrighted works could be a “quick” fix here. You can sell access to your model but not to generate copyrighted works