I think it still does: IIRC, the current legal situation is AI-output does not qualify for IP protections (at least not without substantial later human modification). IP protections are solely reserved for human work.
And I'm fine with that: if a person put in the work, they should have protections so their stuff can't be ripped off for free by all the wealthy major corporations that find some use for it. Otherwise: who cares about the LLMs.
Then fix that instead of blowing it up. Because IP law is also literally the only thing that protects the little guy's work in many cases.
Arguments like yours are kinda unfathomably incomplete to me, almost like they're the remnants of some propaganda campaign. It's constructed to appeal to the defense of the little guy, but the actual effect would be to disempower him and further empower the wealthy major corporations with "big enough warchest[s]."
I mean, one thing I think the RIAA would love is to stop paying royalties to every artist ever. And the only thing they'd be worried about is an even bigger fish (like Amazon, Apple, or Spotify) no longer paying royalties to them. But as you said, they have a big enough war chest that they probably could force a deal somehow. All the artists without a war chest? Left out in the cold.
It definitely does some of both, and we have no obvious measure or counterfactual to know otherwise.
You also have to take into account not just if optimal reform or optimal dismantle is better, but the realistic likelihood of each, and the risk of the bad outcomes from each.
Protect even more conceptual product ideas seems pretty strongly like it will result in more of a tool for big guys only, it's patents on crack and patents are already nearly exclusively "big guy crushes small guy" tool, versus copyright is at least debatably mixed.
Because some photographer somewhere can claim to have put in a lot of effort, we all get IP protection for photographs by default.
I beg to differ. AI-output did not entitle the person creating the prompt for IP protections, so far – but my objection is not directed towards the "so far", but towards your omission of "the person creating the prompt", because if an AI outputs copyrighted material from the training data, that material is still copyrighted. AI is not a magical copyright removal machine.
What this means in practice is that (currently), all output of an LLM is legally considered to not be copyrightable (to the extent that it's an original work). If it happens to regurgitate an existing copyrighted work, though, is that infringement? I'm not sure we have a legal precedent on that question yet.
I believe there are other cases where AI-generated works were found uncopyrightable but Thaler is not a good example* of them.
That also applies to generative AI, pure output may not be copyrightable but as soon as you do something beyond type some words and press a button, like doing area-specific infills and paintovers, which involve direct and deliberate choices by a human, the copyrighted human-driven arrangement becomes so deeply intertwined with the generative work that it's effectively inseperable.