Indeed, but where does it stop? Looks like Potter? No go. Hmm, looks like an illustration of Pug? No go. Looks like Simon the sorcerer. No go. Hmm, looks like a wizard from Infocom's Sorcers get all the girls. No go.

The problem is that it regurgitates what already exists and if you really want to abide by all the permissions then there is nothing left.

The AI companies could always license all that copyrighted training materials. You can't claim there's no solution while ignoring the solution everyone' been using for ages just because these corporations told you so.