Bit torrent clients are almost exclusively used for copyright infringement. Yet they are perfectly legal to develop and distribute. On the flip side, operating a company premised around easy copyright infringement was ruled to be illegal (Napster).

Where we might end up is in a situation where it is legal to train a model. Legal to produce software for using the model to generate content. Legal to distribute all of the above. But offering a standing service that does the above and is capable of creating infringing work is illegal. Great news for llama hobbyists. Bad news for ChatGPT.