There is no valid legal definition, because even general AI (i.e. humans) can memorize copyrighted content and spit it out no problem. I can type out lyrics to some of my favorite songs by heart, and they're still copyrighted.
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So what GitHub needs is a general AI that is literally smart enough to understand what is infringement and what isn't, and that *their lawyers* trust not to screw up, out of judgement, not impossibility. Don't have that yet? Too bad :)
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It's smart of them to do the first big public copyright-in-ML abuse as a thing where the victims are mostly individuals or very small organisations. They're more likely to get a favorable precedent than they would if they did this to a business of comparable size.
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Yeah, you're right. I'm sure they've planned this out well.
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