Raw LLM Responses

THis is a case very relevant to these new laws and i don't know what to do. hope you can give me a quick advice. below what happened: Subject: Summary of AI-Generated Work Dispute with Claimant Background: Approximately a year ago, I entered into a one-year contract with an individual (hereafter referred to as "the Claimant") to access his AI-generated assets, including LoRA models, checkpoints, and prompts, for commercial use. The contract explicitly permitted the use of these assets for "merchandise," which encompassed digital images. The Claimant informed me via email that his models were created by merging publicly available models from platforms like Civitai and Hugging Face, as well as other sources he couldn't recall, acknowledging uncertainty about their licensing status. Use of Assets: During the contract period, I utilized the Claimant's assets to produce derivative works, such as digital images and merchandise. These works were shared on platforms like Patreon; however, they did not generate any profit. After the contract expired, I ceased using his assets and removed related content from all platforms, informing the Claimant of these actions. Current Issue: Approximately a month after the contract's expiration, the Claimant identified a derivative work on my Patreon account—a girl on the beach with similar attire and setting to his creation—and took a screenshot as evidence. Following a DMCA takedown by the Claimant, I filed a counter-notice with Patreon, referencing our initial agreement and his expressed doubts about the origins of his models. We mutually agreed to withdraw both the DMCA claim and the counter-notice, notifying Patreon's legal team accordingly. Concerns: The Claimant asserts that without his shared assets, I wouldn't have been able to create works resembling his, particularly the distinctive Korean female face. I have since developed my own models using commercially available checkpoints and different prompts, resulting in similar but not identical outputs. The Claimant has not registered his models or works with the U.S. Copyright Office. Request: I seek legal advice on the following: The extent of the Claimant's enforceable rights over his AI-generated models and outputs, considering his admission of using publicly available sources with uncertain licensing. The potential risk of legal action from the Claimant, given the steps I've taken to cease using his assets and our mutual agreement to resolve the matter amicably. Guidance on best practices to avoid similar disputes in the future when using AI-generated content and models. I have preserved all communications and documentation related to this matter and can provide them upon request. hope you can help! Thanks!