Just curious, are there any court rulings on transformative works based on LLM-produced stuff?
For example, Grimm's Fairy Tales have been in the public domain forever. But Disney can still make a Snow White movie and get a copyright on that, covering the actual movie itself as well as any story elements added to the original (e.g. the dwarfs getting names). So Neil Gaiman can write "Snow, Glass, Apples" recasting Snow White as a vampire and the queen as a woman trying to protect her kingdom from the predations of the creature, but he can't have one of the dwarves being named "Doc."
Could you do something similar with LLM-produced stuff? Like import an AI-generated image into Photoshop, mess around a bit, and get something clearly based on the AI-generated image but with some additional touches that make it "yours"?