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Things are about to get a lot worse for Generative AI
(garymarcus.substack.com)
Unofficial ChatGPT community to discuss anything ChatGPT
Copyright does protect fictional characters, however usually these characters are also registered trademarks, in which case it's a very obvious violation to reproduce the likeness of a character.
It's not a trademark infringement to create a tool which has the potential to create trademarked characters.
I'm not a lawyer, but this doesn't seem obvious to me.