> Both people will say they are innocent and that the other person used the other's noise vector and the copyrighted work to produce their noise vector.
Simple: because you can't find out who tells the truth, simply jail both. :-)
But the XOR trick scales to many people.
Are you going to jail 100 people because one of them is lying?
More importantly, both are obviously colluding in the infringement, and are fully aware they have copyrighted data.
See also: https://xkcd.com/1494/