What Does It Mean to Break a Distillation Defense?

Black-box LLMs (accessible only via API) are vulnerable to distillation attacks, in which an attacker queries the model and trains a student on its outputs. A recent line of work proposes output perturbation defenses that modify the teacher's output to reduce student performance while preserving utility for legitimate users. As a relatively new family of approaches, output perturbation defenses lack a shared threat model, making it difficult to compare them, reason about composing them with other attacks, or evaluate their robustness against realistic adversaries. This underspecification matters beyond technical evaluation: when defenses are deployed to protect intellectual property or justify regulatory compliance, an imprecise threat model can create a false sense of security. We propose a threat model framework that describes attackers along three dimensions: a query budget, a data budget, and an interface profile that captures how attackers interact with the API. Using antidistillation sampling as a case study, we show that whether the defense is considered effective depends on the assumed threat model. We argue that future work on distillation defenses, along with any governance or policy frameworks built around them, should explicitly specify and stress-test attacker capabilities along our three dimensions.

The Distillation Game: Adaptive Attacks & Efficient Defenses

Distillation attacks create a deployment trade-off for model providers: the same outputs that make a model more useful can also make it easier to imitate. We study this trade-off through a minimax game between a utility-constrained teacher and an adaptive student. Our framework yields tractable one-sided response rules: an adaptive evaluation rule in which the student reweights high-value examples, and a teacher-side defense template that suppresses outputs most useful for distillation. From a cheap proxy for example value, we derive Product-of-Experts (PoE), a simple forward-pass-only defense that combines the teacher with a proxy student during generation. Empirically, adaptive evaluation reveals a large passive--adaptive gap: on state-of-the-art defenses, adaptive students recover substantially more capability than passive evaluation suggests on GSM8K and MATH. Under this stronger evaluation, the apparent robustness gap between expensive defenses and PoE narrows considerably, while PoE remains substantially cheaper and preserves higher-quality reasoning traces. Overall, our results suggest that strong distillation remains difficult to stop, and that progress on antidistillation should be judged against adaptive students rather than passive ones. Our code is available at: https://github.com/ysfalh/distillation-game.