[nonethewiser]

Maybe both are ok. Maybe neither. Maybe one. The point is this does not follow

>If training on copyrighted data without authors consent is ok then distilling is ok as well.

Because building a model from distillation and building a model from raw data are not the same. You have to evaluate them independently. And legally its different as well. IP vs ToS (civil).

[yreg]

No, it follows because the AI labs can at best argue that some copyright over the model output was broken.

They can hardly successfully sue a rival for breaking ToS.