What does cracking down on distillation look like in practice? I imagine data retention would be a part of the strategy, like we saw with Fable?

It seems really hard to allow usage via API and prevent distillation. Maybe limiting usage to within a specific harness would help a bit more. But ultimately the only way to prevent it is by locking down models to trusted entities (like with Glasswing). But then the profit potential of a model is significantly reduced. It really puts the labs in a bind.