Multiple lawsuits have been filed relating to training of generative AI models on copyright protected works. A recent suit seems to focus particularly on this aspect. It seems there could also be a case that the output is infringing (the neural nets were "overfitted" ... The labels see this as straight-up infringement), but please ignore that possibility for the purposes of this question.
In legal action coordinated by industry body the Recording Industry Association of America, Sony, Warner Brothers, Universal, and others have filed suit against Uncharted Labs [PDF], which develops Udio, and Suno [PDF] in New York and Massachusetts respectively.
Both cases focus on the same fundamental charge, that the upstarts used copyrighted music without permission to train their neural networks. It's a similar claim that has been filed against OpenAI, who has been accused of using news articles and other sources to train ChatGPT without explicit permission.
My understanding of this argument is that while Udio and Suno may have had a licence to listen to the music they did not have a licence to train an AI with the music. Both listening to the music and training an AI require the creation of an in memory copy of the music, and it is the creation of the copy for AI training that is the unlicensed activity that is infringing the copyright of the plaintiffs.
If we consider the hypothetical where this company wrote their own software in a low level language like C. This includes their music player and their training algorithm, both tools use the same memory location for the music, and all data is provided to the two algorithms by pointer. In this way the developers are certain that the training process never creates a separate copy of the work, it only ever reuses the copy that was created for the developer to listen to music.
Assuming the developer admits that they created the software for this exact purpose, and the plaintiffs accept the defendants were licenced to create a copy to listen to and there is no copy is created by the unlicensed training process, would any infringement have taken place in the training process?