US judges have already rules that output of an LLM can't be copyrighted so not sure what would prevent Chinese companies to use said output for distillation purposes.
What’s the mechanism that could today prevent other companies from using LLM outputs to train their models?
Mind sharing such cases? I'm not aware of any so far. There's the one with images, but that's commonly miss-understood, that case was ruled on a technicality (i.e. copyright needs to be attributed to a person, not a model)