Describing training as “encoding them in the model” doesn’t seem like an accurate description of what is happening. We know for certain that a typical copyrighted work that is trained on is not contained within the model. It’s simply not possible to represent the entirety of the training set within a model of that size in any meaningful way. There are also papers showing that memorisation plateaus at a reasonably low rate according to the size of the model. Training on more works doesn’t result in more memorisation, it results in more generalisation. So arguments based on the idea that those works are being copied into the model don’t seem to be founded in fact.
> I can't sell you a Harry potter book, but I can sell you some service that let's you generate it yourself?
That’s the reason why cases like this are doomed to fail: No model can output any of the Harry Potter books. Memorisation doesn’t happen at that scale. At best, they can output snippets. That’s clearly below the proportionality threshold for copyright to matter.