If I understand your argument it's ethically ok to destill huge swathes of copyrighted work into a model without compensation, but then it is ethically wrong to use that model without compensation (well actually reduced pricing)?
I don't get the moral framework that you're applying. Could you elaborate?
Over the air TV also isn’t public domain. It’s licensed to a station for broadcast. The output of an LLM has been deemed ineligible for copyright. Until you square that pickle your circle isn’t circling.
Free over-the-air network TV is (generally) copyrighted.
The output of LLMs cannot be copyrighted. This isn't a semantic game; it's literally the case that Anthropic cannot seek relief for people duplicating the output of an LLM.
The relief available to a licensor for violating a license use restriction is cancellation of the license. And they're free to do that, just like Alibaba is free to pay somebody in Hyderabad $20 to make another one.
DMCA can't apply in this case because (this is the "C" in its initialism) it is based on copyright protections, which the output of Claude is not eligible for.
Using a bunch of nonsensical/irrelevant analogies to somehow make a point seems worse than these “word games”? What does streaming copyrighted content have to do with LLM outputs (which are public domain)?
Do you think you can re-stream cable TV or Netflix to your own paying customers at a cheaper price?