I'm not talking about cases where code is copied, as in your example. I fully agree, this should be fixed. But I don't see such a big problem here. We can do sth about this and reduce those cases to a reasonable human-level minimum or below.
I explicitly say human-level because humans would also not be totally immune to this. It can happen that you unintentionally write the same code you have seen somewhere.
It can also even happen that you write the same code just by pure chance.
I'm talking about the statement in general, that all Copilot output is derived work. This is just wrong, as it is for a human as well.
I'm talking about the statement "[Copilot] relies on unprecedented open-source software piracy". This is just wrong. A human also relies on open-source software (and even private software) to learn, and this is not piracy.