If it ends up being ruled that training an LLM is fair use so long as the LLM doesn’t reproduce the works it is trained on verbatim, then licensing becomes irrelevant.

I've had this argument with other people, but essentially at this point there is no licensing beyond server ownership here, and most servers don't have any licenses defined. Even if they do, then sure they did something wrong... but how would you ever prove it or enforce it? The only way to actually disallow them is to switch from open federation to closed - which goes against what we're trying to build with federation.