Earlier quoted context omitted.
Without weighing in on the overall question of “is this a license violation”, you’ve created a false dichotomy. “GitHub included Microsoft proprietary code in the training set because they view the results as non-derivative” and “GitHub didn’t include Microsoft proprietary code because they view the results as derivative” are clearly not the only options. They could have not included Microsoft internal code because i…
Or: they used the entire open source corpus because they thought it was free for the taking, and when people point out that it is not (that there are licenses) they spin that (claim that only 0.1% of output is directly copied, but that would mean 100 lines in 100k program) and pass any risk onto the user (saying it is their responsibility to vet any code they produce). So they aren't saying that users are in the clea…
But, if some of the code produced is covered by copyright, isn't Microsoft in trouble for distributing software that distributes copyrighted code without a license? How would it be different from giving out bootlegs DVDs and trying to avoid blame by reminding everyone that the recipients don't own the copyright?