It's not even close to that simple. Nobody is really questioning if the data contains the copyrighted information, we know that to be true in enough cases to bankrupt open ai, the question is what analogy should the courts be using as a basis to determine if it's infringement.
It read many works but can't duplicate them exactly sounds a lot like what I've done, to be honest. I can give you a few memorable lines to a few songs but only really can come close to reciting my favorites completely. The LLMs are similar but their favorites are the favorites of the training data. A line in a pop song mentioned a billion times is likely reproducible, the lyrics to the next track on the album, not so much.
IMO, any infringement that might have happened would be acquiring data in the first place but copy protection cares more about illegal reproduction than illegal acquisition.
You're correct, as long as you include the understanding that "reproduction" also encompasses "sufficiently similar derivative works."
Fair use provides exceptions for some such works, but not all, and it is possible for generative models to produce clearly infringing (on either copyright or trademark basis) outputs both deliberately (IMO this is the responsibility of the user) and, much less commonly, inadvertently ( ?).
This is likely to be a problem even if you (reasonably) assume that the generative models themselves are not infringing derivative works.
It read many works but can't duplicate them exactly sounds a lot like what I've done, to be honest. I can give you a few memorable lines to a few songs but only really can come close to reciting my favorites completely. The LLMs are similar but their favorites are the favorites of the training data. A line in a pop song mentioned a billion times is likely reproducible, the lyrics to the next track on the album, not so much.
IMO, any infringement that might have happened would be acquiring data in the first place but copy protection cares more about illegal reproduction than illegal acquisition.