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The contract is set by the company, let's say Midjourney, which passes ownership to the person who generate the "art." What needs to be defined is if ai generated art is art? So far, no one seems to have a definite answer. I come down on the side of yes, but there are a lot of others that say no.
Which company passes the ownership to the person in its contract? Midjourney does not, I just looked:
https://docs.midjourney.com/docs/terms-of-service
They make it clear that you do not own the copyright on the images you create. Did the artist suing the copyright office use this company?
A licence isn't a copyright, though?
https://help.midjourney.com/en/articles/8150363-can-i-use-my-images-commercially
In no way does Midjourney own the image, they only have the ability to "reproduce, prepare derivative works of, publicly display, publicly perform, sublicense, and distribute".
That has absolutely nothing to do with who owns the copyright. I already quoted to you from their own ToS and linked to it.
It has everything to do with what the copyright gives them the right to do, which is: reproduce, prepare derivative works of, publicly display, publicly perform, sublicense, and distribute". They cannot claim ownership of the art. If you were to create art that is illegal, they do not own it and are not responsible for that.
And since you want to quote the TOS, here is the first part which you ignored:
You said it was based on the contract. The ToS literally says Midjourney owns the copyright. This is pretty cut-and-dried.
I'm getting really tired of trying to explain this to you. Their copyright does not give them ownership, it gives them very specific rights. These rights are:
If you create CSM with Midjourney, they are not the owners and it cannot be used to sue them. They don't want that smoke. They do not want ownership. They make it very clear in the part you skipped over that you own your work, they simply own the right to "reproduce, prepare derivative works of, publicly display, publicly perform, sublicense, and distribute".
This is literally all about copyright. Hence the copyright office being sued.
The article makes that perfectly clear.
The article makes it perfectly clear that he used Midjourney.
Midjourney makes it perfectly clear that he does not own the copyright to anything he uses Midjourney for.
I'm not sure what your point is.