1. It's decided by courts in US. Courts in US currently are very friendly to big tech. At this point if they deny this and say something that undermines this industry it's going to be a big economic blow, the country is way over-invested in this tech and its infrastructure.

2. "Transformative means fair" is the old idea from pre-LLM world. That's a different world. Now those IP laws are obsolete and need to be significantly updated.