If I make Bambi 2 and toss it up on YouTube I’m going to be sued by Disney for a wide variety of intellectual property violations, it doesn’t matter if I make it by hand or via an LLM. Nothing has changed for big organizations with a legal team.
Copyright infringement obviously.
> DOES NOT make a derivative for the purposes of copyright
Or maybe you have misunderstood the ruling and thats why the stocks of these companies hasn't plunged.
Seeing as your prediction completely failed, it seems way more likely that actually you just misunderstood the ruling.