(1)to reproduce the copyrighted work in copies or phonorecords
The works are copied in their entirey and reproduced in the training database. AI businesses do not deny this is copying, but instead claim it is research and thus has a fair use exemption.
I argue it is not research, but product development - and furthermore, unlike traditional R&D, it is not some prototype that is different and separate from the commercial product. The prototype is the commercial product.
(2)to prepare derivative works based upon the copyrighted work
AI can and has reproduced significant portions of copyrighted work, even in spite of the fact that the finished product allegedly does not include the work in its database (it just read the training database).
Furthermore, even if a human genuinely and honestly believes they're writing something original, that does not matter when they reproduce work that they have read before. What determines copyright infringement is the similarity of the two works.
If you read through the court filings against OpenAI and Stability AI, much of the argument is based around trying to make a claim under case 1.
The position that I take is that the arguments made against OpenAI and Stability AI in court are not complete. They're not quite good enough. However, that doesn't mean there isn't a valid argument that is good enough. I just hope we don't get a ruling in favour of AI businesses simply because the people challenging them didn't employ the right ammunition.
With regards to Case 2, I refer back to my comment about the similarity of the work. The argument isn't that the LLM itself is an infringement of copyright, but that the LLM, as designed by the business, infringes copyright in the same way a human would.
I definitely agree it is all extremely unclear. However, I maintain that the textual definition of the law absolutely still encompasses the feeling that peoples' work is being ripped off for a commercial venture. Because it is so commercial, original authors are being harmed as they will not see any benefit from the commercial profits.
I would also like to point you to my other comment, which I put a lot of time into and where I expanded on many other points (link to your instance's version): https://lemmy.world/comment/6706240
Sorry for the double reply, but I did also expand further upon (3) and (4), and other aspects, in my latest reply to /u/General_Effort@lemmy.world (link to your instance's version): https://midwest.social/comment/6225045