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If I watch a pirated copy of Oppenheimer and then summarize the plot to you, the piracy would be a crime, but the summarization would not.

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If you watch a pirated copy of Oppenheimer, perfectly memorise it with machine-like accuracy, and then recreate it, then yeah you might be in violation of copyright law.

LLMs are very good at creating things in the style of existing work, but they aren't that great at re-creating existing work verbatim. For example, here's what happens if you prompt Midjourney to draw "the mona lisa": https://i.imgur.com/njOlL5h.jpg

Obviously these are attempts at recreating the Mona Lisa, but none of them are the Mona Lisa. Whether they fall within fair use is an entirely separate question.

It originally being pirated or not would not come into play if its a copyright violation or not. Its a violation if it's 1:1 and billed as such, otherwise its a parody or inspired by

If you did so and as a consequence it was provable that far fewer people saw Oppenheimer, resulting in economic damages to the copyright owner, then the summarization may not qualify as fair use and might very well be a crime.

(Btw I'm not saying that's the case, but that's essentially the argument)

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