I said that models don't contain any recognizable part of the original material. They might be able to produce recognizable versions of parts of the original material, as we're seeing here. That's an important distinction. The model itself does not "contain" the images from the training set. It only contains concepts about those images, and concepts are not something that can be copyrighted.

If you want to claim copyright violations over specific output images, sure, that's valid. If I were to hit on exactly the right set of prompts and pseudorandom seed values to get a model to spit out an image that was a dead ringer for a copyrighted work and I was to distribute copies of that resulting image, that's copyright violation. But the model itself is not a copyright violation. No more than an artist is inherently violating copyright because he could potentially pick up his paint brush and produce a copy of an existing work that he's previously seen.

In any event, as I said, Getty isn't suing over the copyright to their watermark.