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From what I’ve seen, here’s what happened. GPT 4 came out, and it can pass the bar exam and medical boards. Then more recently some studies came out. Some of them from before GPT 4 was released that just finally got out or picked up by the press, others that were poorly done or used GPT 3 (probably because of gpt 4 being expensive) and the press doesn’t pick up on the difference. Gpt 4 is really good and has lots of uses. Gpt 3 has many uses as well but is definitely way more prone to hallucinating.
Wikipedia: In copyright law, a derivative work is an expressive creation that includes major copyrightable elements of a first, previously created original work.
I think you may be off a bit on what a derivative work is. I don’t see LLMs spouting out major copyrightable elements of books. They can give a summary sure, but Cliff Notes would like to have a word if you think that’s copyright infringement.