hmmm what you explained sounds exactly like the headline but in legalese…

It basically says “yes, we can train LLMs on free data but they would suck so much nobody would pay for them… unless we are able to train them for free on copyright data, nobody will pay us for the resulting LLM”. It is exactly what the headline summarizes

You are correct, copyright law is a bit of a mess; but giving the exception to the millionaires looking to become billionaires by replacing people with an LLM based on said people’s work, does not really seem a step forward