If you don't understand the meaning of what a 'derived work' is then you should probably not be doing this kind of thing without a massive disclaimer and/or having your lawyer doing a review.

There is no such thing as the output of an LLM as a 'new' work for copyright purposes, if it were then it would be copyrightable and it is not. The term of art is 'original work' instead of 'new'.

The bigger issue will be using tools such as these and then humans passing off the results as their own because they believe that their contribution to the process whitewashes the AI contributions to the point that they rise to the status of original works. "The AI only did little bits" is not a very strong defense though.

If you really want to own the work-product simply don't use AI during the creation. You can use it for reviews, but even then you simply do not copy-and-paste from the AI window to the text you are creating (whether code or ordinary prose isn't really a difference).

I've seen a copyright case hinge on 10 lines of unique code that were enough of a fingerprint to clinch the 'derived work' assessment. Prize quote by the defendant: "We stole it, but not from them".

There is a very blurry line somewhere in the contents of any large LLM: would a model be able to spit out the code that it did if it did not have access to similar samples and to what degree does that output rely on one or more key examples without which it would not be able to solve the problem you've tasked it with?

The lower boundary would be the most minimal training set required to do the job, and then to analyze what the key corresponding bits were from the inputs that cause the output to be non-functional if they were dropped from the training set.

The upper boundary would be where completely non-related works and general information rather than other parties copyrighted works would be sufficient to do the creation.

The easiest way to loophole this is to copyright the prompt, not the work product of the AI, after all you should at least be able to write the prompt. Then others can re-create it too, but that's usually not the case with these AI products, they're made to be exact copies of something that already exists and the prompt will usually reflect that.

That's why I'm a big fan of mandatory disclosure of whether or not AI was used in the production of some piece of text, for one it helps to establish whether or not you should trust it, who is responsible for it and whether the person publishing it has the right to claim authorship.

Using AI as a 'copyright laundromat' is not going to end up well.