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"We could have taken the lot and never written to you". What do we think about this? Not a lawyer, but pretty sure just because something is publicly avaiable does not mean you forfeit copyright. Pretty jarring approach.

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I suppose it's a statement of fact: Their competitors almost certainly have stolen audio, as written works have been stolen by the big LLMs. The email misses "and opened themselves to copyright infringement claims by doing so."

They threaten copyright infringement unless you agree to their licensing terms. They have given you evidence of willful intent but your works need to be registered at the US Copyright Office before you could take action. Willful infringement potentially increases statutory damages (Not legal advice)