> Collateralised Copyright Liability
Is this a real legal / finance term or did you make it up?Also, I do not follow you leap to compare LLMs to CDOs (collateralised debt obligations). And, do you specifically mean CDO or any kind of mortgage / commercial loan structured finance deal?
The process involved in obtaining that end work is completely irrelevant to any copyright case. It can be a claim against the models weights (not possible as it's fair use), or it's against the specific once off output end work (less clear), but it can't be looked at as a whole.
https://www.federalregister.gov/documents/2023/03/16/2023-05...
So I think the law, at least as currently interpreted, does care about the process.
Though maybe you meant as to whether a new work infringes existing copyright? As this guidance is clearly about new copyright.
Who created the work, it's the user who instructed the AI (it's a tool), you can't attribute it to the AI. It would be the equivalent of Photoshop being attributed as co-author on your work.
> nobody could see what was inside CDOs
Absolutely not true. Where did you get that idea? When pricing the bonds from a CDO you get to see the initial collateral. As a bond owner, you receive monthly updates about any portfolio updates. Weirdly, CDOs frequently have more collateral transparency compared to commercial or residential mortgage deals.