And yes LLMs can recall exact material, but it is excerpts and fragments. There is statistical significance to it's ordering. Humans readily do this too (excerpts and fragments), most artists can draw a batman symbol (but not an episode of batman). That doesn't in anyway mean that artists should not be allowed to ever see a batman symbol. It means that artists shouldn't be allowed to get paid to draw one. And they are not. And LLMs are not exempt either.
But the fix is output filtering, just like everything else that can violate copyright. Which is already being done (albeit poorly, but way better than 2 years ago), the same as artists will not draw the batman symbol for you despite being able to.