Is that relevant? I can use a lossy compression algorithm such that the original could never be recovered from the image I've produced, but that derived image would surely be under copyright.
LLMs are obviously capable of producing "exact" phrases as well. Ask it to give you famous quotes, it can do it. Ask it to read a paper for you and cite it, it can do it.
> but that derived image would surely be under copyright.
I wouldn't bet on that. https://en.wikipedia.org/wiki/Campbell%27s_Soup_Cans
I don't know that this really challenges anything relating to compression.
Why would a derived image be under copyright?
Because that's legally the case? I don't understand the question. Using a lossy compression algorithm on an image does not remove its copyright protection.