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> it's at best a contractual clause binding a particular user. Anyone using that improved model afterward is in the clear.

That's... not really accurate. See the concept of tortious interference with a contract.

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Hm, I don't know much about common law, but I don't think this would apply if, say, an ML enthusiast trained a model from LLaMA2 outputs, made it freely available, then someone else commercialised it. The later user never caused the original developer to breach any contract, they simply profited from an existing breach.

That said, doing this inside one company or with subsiduaries probably wouldn't fly.

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