you can buy a book, scan it, and upload the counts of every letter, distribution of apostophies, use it as the input to some convoluted process to produce weights or a search index though. They got slapped for illegally obtaining the files, not for producing derivative works of them.

distilling another llm is a clear tos violation but no one really knows how much teeth those have. financially probably none all they can do is whack a mole on the accounts doing it which won’t work.

so they’re trying to lobby copyright changes i guess; unlikely to succeed as doing so would also make all search engines illegal