I’d be curious to understand what IP is being stolen? According to your (C) office, LLM outputs aren’t copyrightable, and courts have long held reverse engineering to be a fair use; trade secret is a stretch since the company’s model is directly disclosing the info.
Easy to say “IP theft!” Harder to articulate a plausible legal theory, which I presume is why OSTP’s memo on this issue didn’t include one.