Who said anything about creating a derivative? Surely you don't mean to say that any image created with a model trained on copyrighted data counts as a derivative of it. Edit: Or worse, that the model itself is derivative, something so different from an image must count as transformative work!.
> it’s basically the input data compressed with highly lossy compression.
Okay, extract the images from a Stable Diffusion checkpoint then. I'll wait.
It's not like lossy compression CAN'T be fair use or transformative. I'm sure you can imagine how that is possible given the many ways an image can be processed.
> All the corporations that are offering AI as a paid service?
I'm at a food truck and you happen to see and memorize all my CC data and use it because it was in public so it was fair game. Or I was paying using apple pay on the most expensive iPhone available so you take that because it was out in public and if I didn't want anyone grabbing it I shouldn't have brought it out.
Your phone example is just theft unless I'm misreading...do you want to go down the path of calling copyright infringement theft?
As for the card example it is on you to keep secrets secret. It is clearly a fault with how credit cards work and for things like that you should get insurance. Keep your card safe, or better yet, use cash. We can call it theft, doesn't matter to my point.
There is no "taking" or "grabbing" anything, I visited your website and was served a copy of the data because you made it do so. You wanted it to happen, for the public to see it, that was your goal. You expected it to happen. Do you disagree that me acquiring a copy was consensual? If so it is very different from the hypotheticals you're posing don't you think?
Once a copy is in my possession you would need to initiate violence to stop me from training a model on it which puts you on the wrong side of the moral line.
To train a model on the data.