When a LLM is trained on copyright works and regurgitates these works verbatim without consent or compensation, and then sells the result for profit, there is currently no negative impact for the company selling the LLM service.
a lossy compression algorithm is not "inspired" when it is fed copyrighted input
That's exactly what happens when you read. Copyrighted input fed straight into your brain, a lossy storage and processing machine.
I can be in a room looking at something with my eyeballs and listening with my ears perfectly legally... But it would not be legal if I replaced myself with a humanoid mannequin with a video camera for a head.
But it is automatically copying if you use a copier.
And I can not copy paste myself to discuss with thousands or millions of users at time.
To me clear solution is to make some large payment to each author of material used in traing per training of model say 10k to 100k range.