[SomeCallMeTim]

Your link re: Fair Dealing guidelines does NOT make it 100% legal. For one, the ENTIRE works are encoded into the model--not a part of them. For another, those are just guidelines, not explicit exceptions, just like Fair Use in the US. It's all very hand-wavy, even more so in the UK, apparently, so there's no way you can list those guidelines and say that anything is clearly allowed.

Your second link means it's legal for them to CREATE THE MODEL. This is true in the US as well: The model is a clearly transformative use of the data.

But as soon as the model produces works in the same use category as the original work (code -> model -> code, for instance, or image -> model -> image), it is no longer transformative.

If you understand the law and the technology, it's clearly generating derivative works.

[CuriouslyC]

Entire works are encoded in the model in the same way that if I cut up a document into individual words and put it in a bag with a bunch of other documents, if I was a no life loser I could spend a long time "recreating" the document from individual words. The bag of cutout words is NOT copyright violation though.