It's not clear what the asker wants, and the obvious answer is probably the culturally relevant one. Hell, I'd give you the same answers as the AI did here if I had the ability to spit out perfect replicas.
edit - also, I wasn't making a binary claim, the person I was responding to was: "no law". There are more than zero laws relevant to this situation. I agree with you that how relevant is context dependent.
Rules around copyright (esp. Fair use) can be very context dependent.
If I ask an artist to draw me a picture of Indiana Jones and they do it would that be copyright infringement? Even if it's just for my personal use?
It may or may not be fair use, which is a complicated question (ianal).
If e.g. Patreon hosts an artist who will draw a picture of Indiana Jones for me on commission, then my money is going to both Patreon and the artist. Should Patreon also police their artists to prevent reproducing any copyrighted characters?
I get that copyright is a bit of a minefield, and there's some clear cases that should not be allowed, e.g. taking photos of a painting and selling them
That said, I still get the impression that the laws are way too broad and there would be little harm if we reduced their scope. I think we should be allowed to post pictures of Pokemon toys to Wikipedia for example.
I'm willing to listen to other points of view if people want to share though
Not to mention that wikimedia commons, which tries to be a globally reusable repository ignores fair use (which is context dependent), which covers a lot of the cases where copyright law is just being reduculous.
Also, there are IP limits of various sorts (e.g. copyright, trademark) for various purposes (some arguably good, some arguably bad), and some freedoms (e.g., fair use). There's no issue if this follows the rules... but I don't see where that's implemented here.
It looks like they may be selling IP they don't own the right to.
The real issue here is that there's a whole host of implied context in human languages. On the one hand, we expect the machine to not spit out copyrighted or trademarked material, but on the other hand, there's a whole lot of cultural context and implied context that gets baked into these things during training.