Evaluating Harmful Memorization in LLM Code Generation

Large language models (LLMs) are increasingly used to generate code at scale. Meanwhile, prior work has investigated whether training data may be recoverable from model outputs, by auditing the textual overlap between training examples and model generations. Code, however, can be functionally equivalent while textually dissimilar. In this work, we study functional memorization: extraction of functional logic beyond what verbatim metrics detect. We construct a counterfactual setup for Olmo-3-32B, comparing a midtrained model (exposed to target code) against a pretrained reference (not exposed). We prompt both models with Python function signatures and measure both textual and functional similarity (i.e., LLM-as-a-judge, execution-based). Our results show clear evidence of functional memorization, highlighting the need for auditing metrics that go beyond textual overlap.

The extent to which large language models for code rely on memorization over genuine understanding remains highly debated. While current literature frequently reports widespread memorization, evaluating the underlying probing techniques across dense architectures reveals a severe breakdown in their utility at scale. Traditional encoder-style probes using perturbations such as synonym fuzzing or dead-code insertion struggle to expose memorization in scaled models, even on known-contaminated benchmarks, and decoder-style probes that rely on log probabilities show similar performance degradation. The specific mode of failure for these probes, particularly why such techniques disrupt smaller models but fail to impact larger ones, motivates us to untangle representation load from memorization rather than treating them as a single phenomenon. By applying invertible mathematical transforms to numeric problems, we isolate these two factors and reveal that scaled encoders successfully absorb substantial representation load while still converging on the correct family of solutions. In practical software engineering, this ability to adapt to varying surface forms is what truly matters for usability and generalizability in LLM and agentic applications. Whether a specific solution was seen during training becomes a much less pressing question because although memorization inflates scores on contaminated benchmarks, factoring out representation load makes it debatable how much we should truly care if a functional answer was originally memorized. Future evaluations must therefore be built around separating these phenomena rather than relying on methodologies that quietly entangle them.

Training data leakage from Large Language Models (LLMs) raises serious concerns related to privacy, security, and copyright compliance. A central challenge in assessing this risk is distinguishing prefix-specific memorization of training data from the generation of statistically common sequences. Existing approaches to measuring memorization often conflate these phenomena, labeling outputs as memorized even when they arise from generalization over common patterns. Counterfactual memorization and other related metrics \citep{zhang2023counterfactual, wang2025generalization, lesci2024causal} provide principled solutions, however, their reliance on retraining multiple baseline models or parsing through the training data makes them computationally impractical at scale. This work introduces Prior-Aware memorization, a theoretically grounded, lightweight and training-free criterion for identifying prefix-specific memorization in LLMs. The key idea is to evaluate whether a candidate suffix is strongly associated with its specific training prefix or whether it appears with high probability across many IID sampled sequences from the training data distribution due to statistical commonality. We correlate our metric with counterfactual memorization, and also evaluate it on the training corpora of two pre-trained models, LLaMA and OPT. Our results show that between 55% and 90% of sequences previously labeled as memorized fail our criterion and are consistent with statistical commonality