I think you misunderstood my point. Distillation is not stealing. It's not that

"Theft presupposes a legitimate possessory claim by the victim. If A’s possession of X is itself wrongful because A stole X from B, then when C takes X from A, C has not violated A’s rightful ownership of X—because A has none."

Anthropic has no standing in claiming that using its model output is 'stealing' because that would basically eviscerate their business model where they claim that enterprises can use its model output and still claim the generated code as their IP.