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Make illegally trained LLMs public domain as punishment
(www.theregister.com)
This is a most excellent place for technology news and articles.
You've got your definition of "derivative work" wrong. It does indeed need to contain copyrightable elements of another work for it to be a derivative work.
If I took a copy of Harry Potter, reduced it to a fine slurry, and then made a paper mache sculpture out of it, that's not a derivative work. None of the copyrightable elements of the book survived.
Because that would be sufficiently transformative, and passes all the fair use tests with flying colors.
If you cut up the book into paragraphs, sentences, and phrases, and rearranged them to make and sell your own books, then you are likely to fail each of the four tests.
But even if you manage to cut those pieces up so fine that you can't necessarily tell where they come from in the source material, there is enough contained in the output that it is clearly drawing directly on source material.
Ah, the "collage machine" description of how generative AI supposedly works.
It doesn't.
If you can't tell where they "came from" then you can't prove that they're copied. If you can't prove they're copied you can't win a copyright lawsuit in a court of law.