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Comment by LamaOfRuin
None of those tools have actually been legally tested, and there is a reason much of it has been using data sets laundered through academics.The companies behind them know this is not at all a given, and academics make for more sympathetic defendants than billionaires.
Transformative use, as one part of a fair use consideration, is a defense against copyright infringement. The proposal is to first require agreement to a separate license before even being able to access the content. This is an additional layer, which may or may not be enforceable but would definitely establish either negligence or intent, and also brings things like unauthorized access into it. The fact that all of this also includes huge amounts of PII means that in a growing number of jurisdictions misuse of it will not be protected by any copyright exceptions.
It would be an endless battle to stop smaller abusers, but you could definitely prevent GPT-3, Stable Diffusion, and Co-Pilot, since they are all coming out of well-defined legal entities with assets and identifiable humans to go after.