It's partly about Netflix getting sued by someone claiming infringement, but also partly (maybe mostly) about Netflix maintaining their right to sue others for infringement.

The scenario looks like this:

* Be Netflix. Own some movie or series where the main elements (plot, characters, setting) were GenAI-created.

* See someone else using your plot/characters/setting in their own for-profit works.

* Try suing that someone else for copyright infringement.

* Get laughed out of court because the US Copyright Office has already said that GenAI is not copyrightable. [1]

[1] https://www.copyright.gov/ai/Copyright-and-Artificial-Intell...