Yep.

> We should crack down on industrial-scale distillation operations.

"We consume all intellectual property for our model but you cannot do the same"

World's greatest IP thieves propose crackdown on IP theft

It's not even IP. Model outputs are not protected (to the best of my understanding).

It's worth adding that distillation is not a violation of whatever valid copyright interests a model maker may have (if any). The US Copyright Office has already said AI model-generated output by itself isn't copyrightable. Unless new regulations or laws are enacted, distillation will remain, at most, a customer violating a term of a provider's commercial ToS/EULA.