How do any of these AI companies protect authors by users uploading full PDF or even plaintext of anything? Aren’t the same piracy concerns real even if they train on what users are providing ?
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No it wouldn't. Making the machine is not making a copy of the book. Using the machine to make a copy of the book would be infringment because...you would be making a copy of the book.
I think the Aereo case, and Scalia's dissent, are super relevant here. It's when the court decided to go with vibes, instead of facts. The inevitable result of that (which Scalia didn't predict) was selective enforcement.
edit: so what I really mean is that I bet you could get a court to say whatever you wanted about it if you were far wealthier and more influential than your opponents.