> If an LLM is a product, and it contains the work (in this case can spit out Harry Potter) it is derivative. Doesn't matter what it's used for.
That's not the definition of a derivative work in copyright law; further, whether what legally qualifies as a derivative work is within the scope of the exclusive rights of the copyright holder is, in the US, subject to whether it is within one of the exceptions to exclusive rights in the law, notably the fair use exception, which very much does depend on, among other things, what it is used for.
That's not the definition of a derivative work in copyright law; further, whether what legally qualifies as a derivative work is within the scope of the exclusive rights of the copyright holder is, in the US, subject to whether it is within one of the exceptions to exclusive rights in the law, notably the fair use exception, which very much does depend on, among other things, what it is used for.