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It's more simple: They infringe on the IP by way of violating the ToS. If you violate ToS and the company suffers financial harm, they usually can (usually) sue you in civil court for damages.
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Violating terms of service and violating IP rights are two independent violations. Neither implies the other.
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Terms of service are separate from intellectual property
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That’s not what “IP” means. You’re describing breach of contract.
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You can't violate ToS you never agreed to. If I use pirate Claude through a third-party reseller, I have entered no agreement with Anthropic.
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Api key?

I guess you could steal them but thats a whole other issue.

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>Authors do not infringe on IP when they read another's book

Are the distillers reading books or are they building models?

If anthropic is providing no value they can just build from scratch. But obviously distilling is easier. Hes saying thats the value they add.

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There are some quite interesting legal implications here. If Anthropic has IP over output produced by agents, do they somehow have legal rights to code and documents produced by such agents?

This would demolish agent usage by corporations.

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General consensus is that neither the model nor its outputs can be protected IP
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You say “if”. How did Anthropic obtain this IP, if the model serves ripped internet and all human knowledge?
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