In its submission to the Australian government’s review of the regulatory framework around AI, Google said that copyright law should be altered to allow for generative AI systems to scrape the internet.
then go around selling Binbows and MSFT can’t do anything about it
I think this already happen. A very practical example, windows GUI has been copied by many Linus distros. And with windows 11 there’s clearly a reference to Apple MacOS GUI with a sparkling of Google material design.
Should apple and Google be able to sue Microsoft because it “copied” their work? Should Google be able to sue apple because they “copied” the notification drop-down in iOS?
As you say it’s really a grey area because the only reason we consider AI code to be “regurgitated” while human code to be “inspired” is only because we give humans more recognition of their intellectual abilities.
Someone getting sued does not mean they are wrong or that they lost the case. Each case needs to look at the works in question and decide if that perceptual case violates copy write. Lots of things are taken into account here, and even is small elements might have been used or be similar does not automatically win the case.
There is also a difference between some implementation and the overall feature in question. For instance, APIs are not copy writeable, nor are cords in music, nor what something does overall. Only specific implementations are copy writeable.
The same can apply to AI - if it generates a work that if a human did it it would violate copy write then it does - if not then it does not. But AI shows a different problem. That of scale. There is only a limited amount of work that a human can do. But an AI can produce vastly more content - enough that a case by case evaluation of infringement might not be viable. And if that becomes the case then AI works might need to be treated differently from human created works - or maybe how the models are created and how they can use copy writed works. The current laws were never designed with the speed at which AI can work in mind.