German court rulings on copyrightability of AI content, as far as I understand, so far have made it so that the person owning the copyright is a) the author, if there's enough creative input b) no one. A lets the author license it as if they wrote it, and B is just public domain, which is in line with their goals still.
Their concern of "what if the license goes to model providers" is bonkers, and is completely out of line with their decision to ban projects that are mostly written by LLMs. I'm pretty sure it'd be violating copyright for me to upload a project that is 40% leaked Microsoft code and 60% my own, so what's the difference if it ends up that Anthropic owns 40% and I own 60%?
It's clear that this is just them disliking LLMs for coding and trying to ban it in some way, and that's fine, but they should say it as it is and ban it fully, instead of going for this half-solution with a nonsense justification to go with it. If they don't actually dislike LLMs and are just concerned about copyright, then they should revert this change.