AFAIK that's not enough, for instance see the long-standing industry practice that people working on the Important Stuff are not allowed to ever look at the source code of the Direct Competitor; or clean-room reverse engineering, etc.
I guess time will tell how much acquiring companies (my worry) care about Copilot. Given the difficulty hiring good devs, and the productivity level of body-shop devs, I see it getting a whole lot of use very soon, acknowledged or not.
There's a big difference between reverse engineering (i.e. intentionally writing software that behaves identically to another piece of software), and writing your own code to solve your own problem that may superficially contain small portions of the similar logic as some other project. Copyrighted code has to be sufficiently creative and unique to qualify, otherwise after the first person wrote code to parse json from a web request, no one else would be able to do the same thing.
I guess time will tell how much acquiring companies (my worry) care about Copilot. Given the difficulty hiring good devs, and the productivity level of body-shop devs, I see it getting a whole lot of use very soon, acknowledged or not.