They're having trouble getting enterprise customers to sign up for Copilot because of uncertainty over copyright implications of generated code. So they are attempting to remove the uncertainty by claiming they will hold themselves responsible. They are betting that this will allow them to win more Copilot customers. Ultimately, Microsoft has every incentive to ensure that Copilot-generated code is legally allowed; in other words, they will want to make sure any cases that come up related to Copilot code are ruled in their favor. As such they may as well be the ones paying the legal bills. That encourages more customers to sign up and aligns incentives across the board.
