That is exactly the right question and the answer is genuinely strange. Uncopyrightable work falls into the public domain, which means anyone can use it, copy it, or build on it freely. The employer can still call it a trade secret and protect it through confidentiality obligations in employment contracts, but that protection is contractual rather than property-based. A trade secret loses protection the moment it is disclosed. So the employer's claim over purely AI-generated code is essentially: "you cannot share this" rather than "we own this." Those are meaningfully different legal positions, and most companies have not thought through which one they actually have.

Yes, and if the same come ends up in someone else's hands, they can state "we didn't steal it, a GenAI generated it for us, the same as it did for you". Given the non-deterministic operation of current GenAI systems (a major difference from compilers), it would probably be hard to prove either position.

So employees are not allowed to distribute the code, but if it leaks, then it is public and the company cannot do anything about it. Correct? That's what happened to Anthropic I think?