So, does this mean that people can simply argue in court now (if they were to be prosecuted for downloading media via bittorrent) that it is fair use if they used it to train a local model on their machine?
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Of course not. It is just yet another example of a 7-8 figure expensive attorney and their billions dollar corporation wasting everyone' time, tax payers dollars, and demonstrating that the law applies to us and not them. I expect them to just stop showing up in court in time. What can the court do when these people own the people that write the laws?