On a practical level, in order to protect authors and inventors (i.e. give them a reason to keep doing their work), this makes it even more vital to closely loc

On a practical level, in order to protect authors and inventors (i.e. give them a reason to keep doing their work), this makes it even more vital to closely lock down AI interactions and preferably bring models offline in the sense of running locally on hardware without network component and where the bits are not sent anywhere except to the user. That way the output of the interaction can still be covered by trade secrecy if not published, since it will not be covered by copyright law if published or leaked by employees at the hosting company who have access to the output of the interaction. To give a specific example, if as a paying user you craft a prompt to give you a competitive advantage, it will not be protected by copyright if leaked. You can still run the code on your own server and others can still try to guess how you did it, but they should not have access to the interaction unless you explicitly publish it. This will continue to encourage innovation. It is not necessarily the best trade-off but it is understandable.