Copyright law varies internationally, which is especially tricky given we have the internet which can transfer copyrighted material between jurisdictions in the blink of an eye, but this is how one jurisdiction might approach it:
In Germany, there has been a long standing legal dispute between the band Kraftwerk and the musician Moses Pelham about him sampling 2 seconds from Kraftwerk's track "Metall auf Metall" (if you search for this term, you will get a lot of results about the dispute) without permission. This disputed has steadily escalated until it reached European Court of Justice who delivered a judgement establishing a principle that Moses Pelham's use of the sample was legal, and covered by the copyright exemption for "pastiches" (a term that has been mentioned several times in this discussion already).
So, this work here might be a pastiche, meaning a European court might find that there is no compensation due. Or not, who knows, I am not a court and not even a lawyer.
A small addition: With effect from 1 August 2021, the German legislature has amended copyright law to explicitly mention pastiches.
§ 51a Karikatur, Parodie und Pastiche
Zulässig ist die Vervielfältigung, die Verbreitung und die öffentliche Wiedergabe eines veröffentlichten Werkes zum Zweck der Karikatur, der Parodie und des Pastiches. Die Befugnis nach Satz 1 umfasst die Nutzung einer Abbildung oder sonstigen Vervielfältigung des genutzten Werkes, auch wenn diese selbst durch ein Urheberrecht oder ein verwandtes Schutzrecht geschützt ist.
Section 51a Caricature, parody and pastiche
It is permitted to reproduce, distribute and communicate to the public a published work for the purpose of caricature, parody and pastiche. The authorisation under sentence 1 includes the use of an illustration or other reproduction of the work used even if this is itself protected by copyright or a related right.
I think it is heavily edited too because it reads more as human than AI, LLMs are not capable of this coherence though they are good at trite just so stories like this, but if it was generated first why not credit that? But Claude and the original author helped, so why no credit? The little anthropomorphised machines would be sad, and I imagine the original author would be too.
Frog and toad eating cookies is lifted wholesale from the book.
I like how Claude only used the OpenAI account (completely reliable!), and confidently claims ‘the story stays faithful to what actually happened.’ We don’t know the full story, and certainly aren’t going to get it from a press release or a strange analogy involving frog and toad and machines having discussions, emotions etc that we have little evidence for (and most of it from the company involved!). The ‘discussions’ are plucked from chain of thought, which is itself generated after the fact.
Copyright law varies internationally, which is especially tricky given we have the internet which can transfer copyrighted material between jurisdictions in the blink of an eye, but this is how one jurisdiction might approach it:
In Germany, there has been a long standing legal dispute between the band Kraftwerk and the musician Moses Pelham about him sampling 2 seconds from Kraftwerk's track "Metall auf Metall" (if you search for this term, you will get a lot of results about the dispute) without permission. This disputed has steadily escalated until it reached European Court of Justice who delivered a judgement establishing a principle that Moses Pelham's use of the sample was legal, and covered by the copyright exemption for "pastiches" (a term that has been mentioned several times in this discussion already).
Wikipedia article (German): https://de.wikipedia.org/wiki/Rechtsstreit_zwischen_Moses_Pe...
Press release by the Court of Justice (PDF): https://curia.europa.eu/site/upload/docs/application/pdf/202...
The actual judgement: https://infocuria.curia.europa.eu/tabs/jurisprudence?sort=DO...
A rather long expert opinion from before the judgement (PDF): https://freiheitsrechte.org/uploads/documents/Englische-Doku...
So, this work here might be a pastiche, meaning a European court might find that there is no compensation due. Or not, who knows, I am not a court and not even a lawyer.