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448F.3d605(2006)

BILLGRAHAMARCHIVES,PlaintiffAppellant,
v.
DORLINGKINDERSLEYLIMITED,DorlingKindersleyPublishing,Inc.andRRDonnelley&Sons
Company,DefendantsAppellees.
DocketNo.052514CV.
UnitedStatesCourtofAppeals,SecondCircuit.
ArguedJanuary4,2006.
DecidedMay9,2006.
606

*606WilliamF.Patry(PaulM.Fakler,onthebrief),ThelenReid&PriestLLP,forPlaintiffAppellant.
RichardDannay(ThomasKjellberg,onthebrief),Cowan,Liebowitz&Latman,P.C.,forDefendantsAppellees.
Before:KEARSEandRAGGI,CircuitJudges,andRESTANI,[*]Judge.
RESTANI,Judge.

607

Thisappealconcernsthescopeofcopyrightprotectionaffordedartisticconcertpostersreproducedinreducedsizeina
biographyofthemusicalgrouptheGratefulDead.AssertedcopyrightholderBillGrahamArchives,LLC("BGA"or
"Appellant")*607appealsfromajudgmentoftheDistrictCourtfortheSouthernDistrictofNewYorkdismissing,on
motionforsummaryjudgment,itscopyrightinfringementactionagainstDorlingKindersleyLimited,DorlingKindersley
Publishing,Inc.,andR.R.Donnelley&SonsCompany(collectively"DK"or"Appellees").Wereviewthedistrictcourt's
grantofsummaryjudgmentdenovo,andweagreewiththecourtthatDK'sreproductionofBGA'simagesisprotectedby
thefairuseexceptiontocopyrightinfringement.

BACKGROUND
InOctoberof2003,DKpublishedGratefulDead:TheIllustratedTrip("IllustratedTrip"),incollaborationwithGrateful
DeadProductions,intendedasaculturalhistoryoftheGratefulDead.Theresulting480pagecoffeetablebooktellsthe
storyoftheGratefulDeadalongatimelinerunningcontinuouslythroughthebook,chronologicallycombiningover2000
imagesrepresentingdatesintheGratefulDead'shistorywithexplanatorytext.Atypicalpageofthebookfeaturesa
collageofimages,text,andgraphicartdesignedtosimultaneouslycapturetheeyeandinformthereader.PlaintiffBGA
claimstoownthecopyrighttosevenimagesdisplayedinIllustratedTrip,whichDKreproducedwithoutBGA's
permission.
Initially,DKsoughtpermissionfromBGAtoreproducetheimages.InMayof2003,theCEOofGratefulDead
ProductionssentalettertoBGAseekingpermissionforDKtopublishtheimages.BGArespondedbyoffering
permissioninexchangeforGratefulDeadProductions'grantofpermissiontoBGAtomakeCDsandDVDsoutof
concertfootageinBGA'sarchives.Next,DKdirectlycontactedBGAseekingtonegotiatealicenseagreement,butthe
partiesdisagreedastoanappropriatelicensefee.Nevertheless,DKproceededwithpublicationofIllustratedTrip
withoutenteringalicensefeeagreementwithBGA.Specifically,DKreproducedsevenartisticimagesoriginallydepicted
onGratefulDeadeventpostersandtickets.[1]BGA'ssevenimagesaredisplayedinsignificantlyreducedformandare
accompaniedbycaptionsdescribingtheconcertstheyrepresent.
WhenDKrefusedtomeetBGA'spostpublicationlicensefeedemands,BGAfiledsuitforcopyrightinfringement.BGA
soughttoenjoinfurtherpublicationofIllustratedTrip,thedestructionofallunsoldbooks,andactualandstatutory
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damages.Thepartiescrossmovedforsummaryjudgment,withtheprimaryissuebeforethedistrictcourtbeingwhether
DK'suseofBGA'simagesconstitutedfairuseundertheCopyrightActof1976,17U.S.C.101etseq.("CopyrightAct").
Afterapplyingthestatutoryfairusebalancingtest,thedistrictcourtdeterminedthatDK'sreproductionoftheimageswas
fairuseandgrantedDK'smotionforsummaryjudgment.

DISCUSSION
608

Section106oftheCopyrightActgrantscopyrightholdersabundleofexclusive*608rights,includingtherightto
"reproducethecopyrightedworkincopies,"andtheright"topreparederivativeworksbaseduponthecopyrightedwork."
17U.S.C.106.Forpurposesofthemotion,thedistrictcourtassumedplaintiffpossessedtheserightsinthecontested
imagesandthereisnodisputethatcopyingtheimageswasnotauthorizedbyplaintiff.Theissuebeforeusonappeal,
asitwasinthedistrictcourt,iswhetherDK'sunauthorizeduseofBGA'scopyrightedimagesisfairuse.
Thefairusedoctrineisastatutoryexceptiontocopyrightinfringement.Section107oftheCopyrightActpermitsthe
unauthorizeduseorreproductionofcopyrightedworkifitis"forpurposessuchascriticism,comment,newsreporting,
teaching...,scholarship,orresearch."17U.S.C.107.Whethersuch"fairuse"existsinvolvesacasebycase
determinationusingfournonexclusive,statutorilyprovidedfactorsinlightofthepurposesofcopyright.Harper&Row,
Publishers,Inc.v.NationEnters.,471U.S.539,549,105S.Ct.2218,85L.Ed.2d588(1985).Thefactorsare:(1)"the
purposeandcharacteroftheuse"(2)"thenatureofthecopyrightedwork"(3)"theamountandsubstantialityofthe
portionusedinrelationtothecopyrightedworkasawhole"and(4)"theeffectoftheuseuponthepotentialmarketforor
valueofthecopyrightedwork."17U.S.C.107."Theultimatetestoffairuse...iswhetherthecopyrightlaw'sgoalof
promotingtheProgressofScienceandusefulArtswouldbebetterservedbyallowingtheusethanbypreventingit."
CastleRockEntm't,Inc.v.CarolPubl'gGroup,150F.3d132,141(2dCir.1998)(internalcitationsandquotationmarks
omitted).
Inthiscase,thedistrictcourtconcludedthatthebalanceoffairusefactorsweighsinfavorofDK.Althoughtheissueof
fairuseisamixedquestionoflawandfact,thecourtmayresolveissuesoffairuseatthesummaryjudgmentstage
wheretherearenogenuineissuesofmaterialfactastosuchissues.Wrightv.WarnerBooks,Inc.,953F.2d731,735(2d
Cir.1991).Astherearenogenuineissuesofmaterialfacthere,wereviewthedistrictcourt'slegalconclusionsdenovo.
NewEraPubl'nsInt'l,ApSv.CarolPubl'gGroup,904F.2d152,155(2dCir.1990).Weagreewiththedistrictcourtthat
DK'suseofthecopyrightedimagesisprotectedasfairuse.
I.PurposeandCharacterofUse
Wefirstaddress"thepurposeandcharacteroftheuse,includingwhethersuchuseisofacommercialnatureorisfor
nonprofiteducationalpurposes."17U.S.C.107(1).[2]Mostimportanttothecourt'sanalysisofthefirstfactoristhe
"transformative"natureofthework.SeePierreN.Leval,TowardaFairUseStandard,103Harv.L.Rev.1105,1111
(1990).Thequestionis"whetherthenewworkmerelysupersede[s]theobjectsoftheoriginalcreation,orinsteadadds
somethingnew,withafurtherpurposeordifferentcharacter,alteringthefirstwithnewexpression,meaning,or
message."Campbellv.AcuffRoseMusic,Inc.,510U.S.569,579,114S.Ct.1164,127L.Ed.2d500(1994)(internal
citationsandquotationmarksomitted)(alterationinoriginal).
Here,thedistrictcourtdeterminedthatIllustratedTripisabiographicalwork,andtheoriginalimagesarenot,and

609

thereforeaccordedastrongpresumptioninfavor*609ofDK'suse.Inparticular,thedistrictcourtconcludedthatDK's
useofimagesplacedinchronologicalorderonatimelineistransformativelydifferentfromthemereexpressiveuseof
imagesonconcertpostersortickets.Becausetheworksaredisplayedtocommemoratehistoricevents,arrangedina
creativefashion,anddisplayedinsignificantlyreducedform,thedistrictcourtheldthatthefirstfairusefactorweighs
heavilyinfavorofDK.
Appellantchallengesthedistrictcourt'sstrongpresumptioninfavoroffairusebasedonthebiographicalnatureof
IllustratedTrip.AppellantarguesthatbasedonthispurportederrorthedistrictcourtfailedtoexamineDK'sjustification
foritsuseofeachoftheimages.Moreover,Appellantarguesthatasamatteroflawmerelyplacingposterimagesalong

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atimelineisnotatransformativeuse.Appellantassertsthateachreproducedimageshouldhavebeenaccompaniedby
commentorcriticismrelatedtotheartisticnatureoftheimage.
WedisagreewithAppellant'slimitedinterpretationoftransformativeuseandweagreewiththedistrictcourtthatDK's
actualuseofeachimageistransformativelydifferentfromtheoriginalexpressivepurpose.Preliminarily,werecognize,
asthedistrictcourtdid,thatIllustratedTripisabiographicalworkdocumentingthe30yearhistoryoftheGratefulDead.
Whiletherearenocategoriesofpresumptivelyfairuse,seeCampbellv.AcuffRoseMusic,Inc.,510U.S.at584,114
S.Ct.1164,courtshavefrequentlyaffordedfairuseprotectiontotheuseofcopyrightedmaterialinbiographies,
recognizingsuchworksasformsofhistoricscholarship,criticism,andcommentthatrequireincorporationoforiginal
sourcematerialforoptimumtreatmentoftheirsubjects.See17U.S.C.107(statingthatfairuseofacopyrightedwork
"forpurposessuchascriticism,comment...[or]scholarship...isnotaninfringementofcopyright")Am.Geophysical
Unionv.Texaco,Inc.,60F.3d913,932(2dCir.1994)(Jacobs,J.,dissenting)(notingthat"[m]uchofourfairusecaselaw
hasbeengeneratedbytheuseofquotationinbiographies,apracticethatfitscomfortablywithinthe[]statutory
categoriesofusesillustrativeofusesthatcanbefair")(internalquotationmarksomitted)(alterationinoriginal)Salinger
v.RandomHouse,Inc.,811F.2d90,96(2dCir.1987)(holdingthatquotationofSalinger'slettersinabiographycouldbe
consideredcriticism,scholarship,andresearch,whichareamongtheillustrativestatutorycategoriesoffairuse
enumeratedin17U.S.C.107).Nolessarecognitionofbiographicalvalueiswarrantedinthiscasesimplybecause
thesubjectmadeamarkinpopcultureratherthansomeotherareaofhumanendeavor.SeeTwinPeaksProds.,Inc.v.
Publ'nsInt'l,Ltd.,996F.2d1366,1374(2dCir.1993)(notingthataworkthatcommentsabout"popculture"isnot
removedfromthescopeofSection107simplybecauseitisnoterudite).
Intheinstantcase,DK'spurposeinusingthecopyrightedimagesatissueinitsbiographyoftheGratefulDeadisplainly
differentfromtheoriginalpurposeforwhichtheywerecreated.Originally,eachofBGA'simagesfulfilledthedual
purposesofartisticexpressionandpromotion.Theposterswereapparentlywidelydistributedtogeneratepublicinterest
intheGratefulDeadandtoconveyinformationtoalargenumberpeopleabouttheband'sforthcomingconcerts.In
contrast,DKusedeachofBGA'simagesashistoricalartifactstodocumentandrepresenttheactualoccurrenceof
GratefulDeadconcerteventsfeaturedonIllustratedTrip'stimeline.
610

Insomeinstances,itisreadilyapparentthatDK'simagedisplayenhancesthe*610reader'sunderstandingofthe
biographicaltext.[3]Inotherinstances,thelinkbetweenimageandtextislessobviousnevertheless,theimagesstill
serveashistoricalartifactsgraphicallyrepresentingthefactofsignificantGratefulDeadconcerteventsselectedbythe
IllustratedTrip'sauthorforinclusioninthebook'stimeline.[4]WeconcludethatbothtypesofusesfulfillDK's
transformativepurposeofenhancingthebiographicalinformationinIllustratedTrip,apurposeseparateanddistinct
fromtheoriginalartisticandpromotionalpurposeforwhichtheimageswerecreated.SeeElvisPresleyEnters.,Inc.v.
PassportVideo,349F.3d622,62829(9thCir.2003)(findingtheuseoftelevisionclipstobetransformativewhere"the
clipsplayforonlyafewsecondsandareusedforreferencepurposeswhileanarratortalksoverthemorinterviewees
explaintheircontextinElvis'career,"butnottobetransformativewheretheclips"playwithoutmuchinterruption,[and
t]hepurposeofshowingtheseclipslikelygoesbeyondmerelymakingareferenceforabiography,butinsteadserves
thesameintrinsicentertainmentvaluethatisprotectedbyPlaintiffs'copyrights")seealsoHofheinzv.A&ETelevision
Networks,Inc.,146F.Supp.2d442,44647(S.D.N.Y.2001)(rulingthatunauthorizedinclusionofcopyrightedfilmclipsin
actor'sbiographicalfilmwasprotectedfairusebecausethebiography"wasnotshowntorecreatethecreative

611

expressionreposinginplaintiff's[copyrighted]film,[but]forthetransformativepurpose*611ofenablingtheviewerto
understandtheactor'smodestbeginningsinthefilmbusiness").Insum,becauseDK'suseofthedisputedimagesis
transformativebothwhenaccompaniedbyreferencingcommentaryandwhenstandingalone,weagreewiththedistrict
courtthatDKwasnotrequiredtodiscusstheartisticmeritsoftheimagestosatisfythisfirstfactoroffairuseanalysis.
ThisconclusionisstrengthenedbythemannerinwhichDKdisplayedtheimages.First,DKsignificantlyreducedthe
sizeofthereproductions.SeeKellyv.ArribaSoftCorp.,336F.3d811,81820(9thCir.2003)(findingonlinesearch
engine'suseofthumbnailsizedimagestobehighlytransformative).Whilethesmallsizeissufficienttopermitreadersto
recognizethehistoricalsignificanceoftheposters,itisinadequatetooffermorethanaglimpseoftheirexpressivevalue.
Inshort,DKusedtheminimalimagesizenecessarytoaccomplishitstransformativepurpose.

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Second,DKminimizedtheexpressivevalueofthereproducedimagesbycombiningthemwithaprominenttimeline,
textualmaterial,andoriginalgraphicalartwork,tocreateacollageoftextandimagesoneachpageofthebook.To
furtherthiscollageeffect,theimagesaredisplayedatanglesandtheoriginalgraphicalartworkisdesignedtoblendwith
theimagesandtext.Overall,DK'slayoutensuresthattheimagesatissueareemployedonlytoenrichthepresentation
oftheculturalhistoryoftheGratefulDead,nottoexploitcopyrightedartworkforcommercialgain.SeeHofheinz,146
F.Supp.at446.
Third,BGA'simagesconstituteaninconsequentialportionofIllustratedTrip.Theextenttowhichunlicensedmaterialis
usedinthechallengedworkcanbeafactorindeterminingwhetherabiographer'suseoforiginalmaterialshasbeen
sufficientlytransformativetoconstitutefairuse.SeeCraftv.Kobler,667F.Supp.120,129(S.D.N.Y.1987)(Leval,J.)
(findingbiographyofStravinskytobeunfairinpartbecausethetakingswerenumerousandwerethe"liveliestandmost
entertainingpartofthebiography").Althoughourcircuithascounseledagainstconsideringthepercentagetheallegedly
infringingworkcomprisesofthecopyrightedworkinconductingthirdfactorfairuseanalysis,seeNXIVMCorp.v.Ross
Inst.,364F.3d471,480(2dCir.2004),severalcourtshavedoneso,see,e.g.,Harper,471U.S.at56566,105S.Ct.
2218(findingthefactthatquotesfromPresidentFord'sunpublishedmemoirsplayedacentralroleintheallegedly
infringingmagazinearticle,constituting13%ofthatarticle,weighedagainstafindingoffairuse)Salinger,811F.2dat
9899(findingthefactthatlettersarequotedorparaphrasedonapproximately40%ofthebook's192pagesweighs
againstfairuse).Wefindthisinquirymorerelevantinthecontextoffirstfactorfairuseanalysis.
Intheinstantcase,thebookis480pageslong,whiletheBGAimagesappearononlysevenpages.Althoughthe
originalpostersrangeinsizefrom13"x19"tomorethan19"x27,"thelargestreproductionofaBGAimagein
IllustratedTripislessthan3"x4,"lessthan1/20thesizeoftheoriginal.AndnoBGAimagetakesupmorethanone
eighthofapageinabookorisgivenmoreprominencethananyotherimageonthepage.Intotal,theimagesaccount
forlessthanonefifthofonepercentofthebook.Thisstandsinstarkcontrasttothewholesaletakingsincasessuchas
thosedescribedabove,andweareawareofnocasewheresuchaninsignificanttakingwasfoundtobeanunfairuseof
originalmaterials.
612

Finally,astothisfirstfactor,webrieflyaddressthecommercialnatureofIllustratedTrip.SeeHarper,471U.S.at*612
562,105S.Ct.2218(statingthatthefactthatthepurposeofanewuseiscommercialweighsagainstfindingfairuse).
EventhoughIllustratedTripisacommercialventure,werecognizethat"nearlyalloftheillustrativeuseslistedinthe
preambleparagraphof107...aregenerallyconductedforprofit...."Campbell,510U.S.at584,114S.Ct.1164
(internalquotationmarksomitted).Moreover,"[t]hecruxoftheprofit/nonprofitdistinctionisnotwhetherthesolemotiveof
theuseismonetarygainbutwhethertheuserstandstoprofitfromexploitationofthecopyrightedmaterialwithoutpaying
thecustomaryprice."Harper,471U.S.at562,105S.Ct.2218.Here,IllustratedTripdoesnotexploittheuseofBGA's
imagesassuchforcommercialgain.Significantly,DKhasnotusedanyofBGA'simagesinitscommercialadvertisingor
inanyotherwaytopromotethesaleofthebook.IllustratedTripmerelyusespicturesandtexttodescribethelifeofthe
GratefulDead.Bydesign,theuseofBGA'simagesisincidentaltothecommercialbiographicalvalueofthebook.
Accordingly,weconcludethatthefirstfairusefactorweighsinfavorofDKbecauseDK'suseofBGA'simagesis
transformativelydifferentfromtheimages'originalexpressivepurposeandDKdoesnotseektoexploittheimages'
expressivevalueforcommercialgain.
II.NatureoftheCopyrightedWork
Thesecondfactorinafairusedeterminationis"thenatureofthecopyrightedwork."17U.S.C.107(2).Toresolvethis
inquirythecourtconsiders"theprotectionofthereasonableexpectationsofonewhoengagesinthekindsof
creation/authorshipthatthecopyrightseekstoencourage."Leval,supra,at1122."[C]reativeexpressionforpublic
disseminationfallswithinthecoreofthecopyright'sprotectivepurposes."Campbell,510U.S.at586,114S.Ct.1164.
ThedistrictcourtdeterminedthatthesecondfactorweighsagainstDKbecausetheimagesarecreativeartworks,which
aretraditionallythecoreofintendedcopyrightprotection.Nevertheless,thecourtlimitedtheweightitplacedonthis
factorbecausethepostershavebeenpublishedextensively.Appellantagreesthatthedistrictcourtproperlyweighed
thesecondfactoragainstDK,althoughitquestionsthelesserprotectiongiventopublishedworks.Appelleescounter

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thatbecausetheimagesaremixedfactualandcreativeworksandhavebeenlongandextensivelypublished,the
secondfactortiltstowardfairuse.
Weagreewiththedistrictcourtthatthecreativenatureofartisticimagestypicallyweighsinfavorofthecopyrightholder.
Werecognize,however,thatthesecondfactormaybeoflimitedusefulnesswherethecreativeworkofartisbeingused
foratransformativepurpose.SeeCampbell,510U.S.at586,114S.Ct.1164(statingthatthesecondfactorisnot"likely
tohelpmuchinseparatingthefairusesheepfromtheinfringinggoats"incasesinvolvingtransformativecopyingof
"publiclyknown,expressiveworks").ThisisnotacasesuchasRinggoldv.BlackEntm'tTelevision,Inc.,126F.3d70(2d
Cir.1997),inwhichweheldthatthecreativeworkwasbeingusedforthesamedecorativepurposeastheoriginal.Here,
weconcludethatDKisusingBGA'simagesforthetransformativepurposeofenhancingthebiographicalinformation
providedinIllustratedTrip.Accordingly,weholdthateventhoughBGA'simagesarecreativeworks,whichareacore
concernofcopyrightprotection,thesecondfactorhaslimitedweightinouranalysisbecausethepurposeofDK'suse
613

wastoemphasizethe*613images'historicalratherthancreativevalue.
III.AmountandSubstantialityofthePortionUsed
Thethirdfairusefactorasksthecourttoexamine"theamountandsubstantialityoftheportionusedinrelationtothe
copyrightedworkasawhole."17U.S.C.107(3).Wereviewthisfactorwithreferencetothecopyrightedwork,notthe
infringingwork.NewEra,904F.2dat159.Thecourtmustexaminethequantitativeandqualitativeaspectsoftheportion
ofthecopyrightedmaterialtaken.Campbell,510U.S.at586,114S.Ct.1164.
Thedistrictcourtdeterminedthateventhoughtheimagesarereproducedintheirentirety,thethirdfairusefactorweighs
infavorofDKbecausetheimagesaredisplayedinreducedsizeandscatteredamongmanyotherimagesandtexts.In
faultingthisconclusion,Appellantcontendsthattheamountusedissubstantialbecausetheimagesarecopiedintheir
entirety.Neitherourcourtnoranyofoursistercircuitshaseverruledthatthecopyingofanentireworkfavorsfairuse.At
thesametime,however,courtshaveconcludedthatsuchcopyingdoesnotnecessarilyweighagainstfairusebecause
copyingtheentiretyofaworkissometimesnecessarytomakeafairuseoftheimage.SeeKelly,336F.3dat821
(concludingthatimagesusedforasearchenginedatabasearenecessarilycopiedintheirentiretyforthepurposeof
recognition)Nunezv.CaribbeanInt'lNewsCorp.,235F.3d18,24(1stCir.2000)(concludingthattocopyanylessthan
theentireimagewouldhavemadethepictureuselesstothestory).Adoptingthisreasoning,weconcludethatthethird
factorinquirymusttakeintoaccountthatthe"theextentofpermissiblecopyingvarieswiththepurposeandcharacterof
theuse."Campbell,510U.S.at58687,114S.Ct.1164.
Here,DKusedBGA'simagesbecausethepostersandticketswerehistoricalartifactsthatcoulddocumentGrateful
Deadconcerteventsandprovideavisualcontextfortheaccompanyingtext.Toaccomplishthisuse,DKdisplayed
reducedversionsoftheoriginalimagesandintermingledthesevisualswithtextandoriginalgraphicart.Asa
consequence,eventhoughthecopyrightedimagesarecopiedintheirentirety,thevisualimpactoftheirartistic
expressionissignificantlylimitedbecauseoftheirreducedsize.SeeKelly,336F.3dat821(concludingthatthumbnails
arenotasubstituteforfullsizeimages).WeconcludethatsuchusebyDKistailoredtofurtheritstransformativepurpose
becauseDK'sreducedsizereproductionsofBGA'simagesintheirentiretydisplayedtheminimalimagesizeandquality
necessarytoensurethereader'srecognitionoftheimagesashistoricalartifactsofGratefulDeadconcertevents.
Accordingly,thethirdfairusefactordoesnotweighagainstfairuse.
IV.EffectoftheUseupontheMarketfororValueoftheOriginal
Thefourthfactoris"theeffectoftheuseuponthepotentialmarketfororvalueofthecopyrightedwork."17U.S.C.
107(4).Thecourtlookstonotonlythemarketharmcausedbytheparticularinfringement,butalsotowhether,ifthe
challengedusebecomeswidespread,itwilladverselyaffectthepotentialmarketforthecopyrightedwork.Harper,471
U.S.at568,105S.Ct.2218.Thisanalysisrequiresabalancingof"thebenefitthepublicwillderiveiftheuseispermitted
andthepersonalgainthecopyrightownerwillreceiveiftheuseisdenied."MCA,Inc.v.Wilson,677F.2d180,183(2d
Cir.1981).

614

*614Intheinstantcase,thepartiesagreethatDK'suseoftheimagesdidnotimpactBGA'sprimarymarketforthesaleof

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theposterimages.Instead,welooktowhetherDK'sunauthorizeduseusurpsBGA'spotentialtodevelopaderivative
market.AppellantarguesthatDKinterferedwiththemarketforlicensingitsimagesforuseinbooks.Appellantcontends
thatthereisanestablishedmarketforlicensingitsimagesanditsufferedboththelossofroyaltyrevenuedirectlyfrom
DKandtheopportunitytoobtainroyaltiesfromothers.
"Itisindisputablethat,asageneralmatter,acopyrightholderisentitledtodemandaroyaltyforlicensingotherstouse
itscopyrightedwork,andthattheimpactonpotentiallicensingrevenuesisapropersubjectforconsiderationin
assessingthefourthfactor."Texaco,60F.3dat929(citationsomitted).Wehavenoted,however,that"wereacourt
automaticallytoconcludeineverycasethatpotentiallicensingrevenueswereimpermissiblyimpairedsimplybecause
thesecondaryuserdidnotpayafeefortherighttoengageintheuse,thefourthfairusefactorwouldalwaysfavorthe
copyrightholder."Id.at930n.17(emphasisadded)seePrincetonUniv.Pressv.Mich.DocumentServs.,99F.3d1381,
1387(6thCir.1996)(statingthatacopyrightholdermusthavearighttocopyrightrevenuesbeforefindingthatafailureto
payalicensefeeequalsmarketharm)Leval,supra,at1124(statingthat"[b]ydefinitioneveryfairuseinvolvessome
lossofroyaltyrevenuebecausethesecondaryuserhasnotpaidroyalties")4MelvilleB.Nimmer&DavidNimmer,
NimmeronCopyright13.05[A][4](2005)(statingthat"itisagivenineveryfairusecasethatplaintiffsuffersalossofa
potentialmarketifthatpotentialisdefinedasthetheoreticalmarketforlicensingtheveryuseatbar").Accordingly,wedo
notfindaharmtoBGA'slicensemarketmerelybecauseDKdidnotpayafeeforBGA'scopyrightedimages.
Instead,welookattheimpactonpotentiallicensingrevenuesfor"traditional,reasonable,orlikelytobedeveloped
markets."Texaco,60F.3dat930.Inordertoestablishatraditionallicensemarket,Appellantpointstothefeespaidto
othercopyrightownersforthereproductionoftheirimagesinIllustratedTrip.Moreover,Appellantassertsthatit
establishedamarketforlicensingitsimages,andinthiscaseexpressedawillingnesstolicenseimagestoDK.Neither
oftheseargumentsshowsimpairmenttoatraditional,asopposedtoatransformativemarket.[5]SeeLeval,supra,at
1125(explainingthat"[t]hefourthfactordisfavorsafindingoffairuseonlywhenthemarketisimpairedbecausethe...
materialservestheconsumerasasubstitute,or,...supersedestheuseoftheoriginal")(internalquotationmarks
omitted).
Here,unlikeinTexaco,weholdthatDK'suseofBGA'simagesistransformativelydifferentfromtheiroriginalexpressive
615

purpose.[6]Inacasesuchasthis,a*615copyrightholdercannotpreventothersfromenteringfairusemarketsmerely
"bydevelopingorlicensingamarketforparody,newsreporting,educationalorothertransformativeusesofitsown
creativework."CastleRock,150F.3dat146n.11."[C]opyrightownersmaynotpreemptexploitationoftransformative
markets...."Id.Moreover,apublisher'swillingnesstopaylicensefeesforreproductionofimagesdoesnotestablish
thatthepublishermaynot,inthealternative,makefairuseofthoseimages.Campbell,510U.S.at585n.18,114S.Ct.
1164(statingthat"beingdeniedpermissiontouse[orpaylicensefeesfor]aworkdoesnotweighagainstafindingoffair
use").SinceDK'suseofBGA'simagesfallswithinatransformativemarket,BGAdoesnotsuffermarketharmduetothe
lossoflicensefees.
V.BalanceofFactors
Onbalance,weconclude,asthedistrictcourtdid,thatthefairusefactorsweighinfavorofDK'suse.Forthefirstfactor,
weconcludethatDK'suseofconcertpostersandticketsashistoricalartifactsofGratefulDeadperformancesis
transformativelydifferentfromtheoriginalexpressivepurposeofBGA'scopyrightedimages.Whilethesecondfactor
favorsBGAbecauseofthecreativenatureoftheimages,itsweightislimitedbecauseDKdidnotexploittheexpressive
valueoftheimages.AlthoughBGA'simagesarecopiedintheirentirety,thethirdfactordoesnotweighagainstfairuse
becausethereducedsizeoftheimagesisconsistentwiththeauthor'stransformativepurpose.Finally,weconcludethat
DK'susedoesnotharmthemarketforBGA'ssaleofitscopyrightedartwork,andwedonotfindmarketharmbasedon
BGA'shypotheticallossoflicenserevenuefromDK'stransformativemarket.

CONCLUSION
Fortheforegoingreasons,weconcludethatDK'suseofBGA'scopyrightedimagesinitsbookIllustratedTripisfairuse.
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Accordingly,weAFFIRM.
[*]TheHonorableJaneA.Restani,ChiefJudgeoftheUnitedStatesCourtofInternationalTrade,sittingbydesignation.
[1]Thedisputedimagesappearasfollows:(1)onpage76,aconcertposterfortheGratefulDead,JeffersonAirplane,andBigBrother
andtheHoldingCompanyplayingattheHollywoodBowl(2)onpage103,aconcertposterfortheGratefulDead,JeffersonAirplane,
andSonsofChamplinplayingattheWinterlandArena(3)onpage130,apictureofthefrontandbackofaconcertticketforashowat
theFillmoreTheatre,reusedforaGratefulDeadconcertattheWinterlandArena(4)onpage254,aconcertposterforGratefulDead
showsattheWarfieldTheatre(5)onpage361,aconcertposterforaGratefulDeadshowattheOaklandColiseum(6)onpage397,a
concertposterforaGratefulDeadshowonNewYear'sEveand(7)onpage421,afakeinhouseposterforaNewYear'sEve1993
concert.
[2]Obviously,theusehereisofageneralcommercialnatureratherthananonprofitnature,buttheinquiryisbothabroaderoneanda
narroweronethanmayappearatfirstglanceaswillbeexplained.
[3]Forexample,BGAclaimscopyrightinfringementofaconcertposterimage,reproducedonpage254ofIllustratedTrip,depictingtwo
skeletonsflankingtheWarfieldTheatre.Thereaderisexpectedtoviewthisimagetogetherwiththetextonpages254and255underthe
caption,"TheWarfield/RadioCityShows,"andwithanoncontestedimageonpage255,depictingtwoskeletonsflankingtheRadioCity
MusicHall.Inthisinstance,thetextspecificallycommentsontheposterimage,explaining:
TheDead'sreal15thanniversarycelebrationin1980spannedtwomonths,twocoasts,andeventuallytwoalbums....Thebicoastal
settingsfortheshowswereverydifferentSanFrancisco'sWarfieldTheatrewasanintimatehouseof2,400seats,whileNewYorkCity's
RadioCityMusicHallwas,well,RadioCitybuttheDead'sperformancesinbothproducedsomeofthemosttreasuredmomentsofthe
band'searly'80speriod....The[Dead's]otherwisebrilliantRadioCityrunwasmarredbyabizarredisputebetweenthebandand
RadioCity'smanagement.Thelatterobjectedtopromotionalpostersshowingtheinevitableskeletonsflankingthevenerablevenue.
EvidentlynotwellversedinGratefulDeadiconography,theRadioCityexecsinterpretedthepostersasacodedmessagethattheband
thoughtthatRadioCity'sdayswerenumbered,andtheyslappedthebandwithamilliondollarlawsuit.Themisunderstandingwasquickly
clearedup.
Theauthorusesimagestoenhancethereader'sunderstandingofthestatementthatRadioCityMusicHallexecutiveswereunfamiliar
withGratefulDeadiconographybydisplayingnearlyidenticalconcertpromotionpostersfortheWarfieldTheatreandtheRadioCity
MusicHall.
[4]Forexample,BGAclaimscopyrightinfringementofaconcertposterimage,reproducedonpage103ofIllustratedTrip,promotinga
concertattheWinterlandArena.ThereaderisexpectedtoviewthisimagetogetherwithanentryonthetimelineforOctober24,25,and
26,accompanyingtextdescribingtheshows,andaquotationfromBillGrahamtotheaudienceonSaturday,October25.Thetext
describestheshowasfollows:
HotTuna,JeffersonAirplane,andSonsofChamplinplayallthreenights.OnSaturdayStephenStillsmayhaveplayedon"TurnonYour
Lovelight."Sundaymarksthelast"Doin'thatRag."
Whiletheconcertposterimagedoesnotnecessarilyenhancethereader'sunderstandingofthetext,itservesasarecognizable
representationoftheconcert.Italsodocumentsconcertinformationandprovidesnotablehistoricdetails,suchasthefactthat,atthis
relativelyearlystageofitscareer,theGratefulDeadreceivedsecondbillingtoJeffersonAirplane.
[5]Tothecontrary,hadthebookbeencommerciallysuccessfulwhichitwasnotitmighthavegarneredinterestintheoriginalimages
infullsizebecausethereducedimageshavesuchminimalexpressiveimpact.Anafficionadomightseekmorethana"peek."
[6]Texacomayalsobedistinguishedbecauseinthatcasewefoundthatscientificresearchers'copyingofscientificjournalarticlescaused
thosejournalstoloselicenserevenues,becausetheresearcherswerelookingtotheirowncopiesofthearticlesratherthandownloading
themfromonlinedatabasessuchasLexis,whichpaidthejournalsalicensefee.See60F.3dat92932.Inotherwords,Texacoinvolved
directevidencethattheallegedlyinfringingusewouldcausetheownertoloselicenserevenuesderivedfromasubstantiallysimilaruse.
Here,incontrast,BGA'sdirectevidenceofitslicenserevenuesinvolvesausethatismarkedlydifferentfromtheusebyDK.Thelicenses
BGAsoldtootherpublisherswereforsubstantiallylesstransformativeusesofitsposters:fullpage,prominentlydisplayedreproductions
ofBGA'simages,withlittlediscussionoftheimagesortheirhistoricalcontext,muchlessanycompilationofotherrelatedworksintoa
coherentwhole.Indeed,oneoftheimagesBGApointstowasusedasthecoverofabook.DK'suseofBGA'simagesismarkedlymore
originalthantheotherusesthatBGAhaslicensedandBGAthushasnotshowndirectevidenceofsignificantlostlicenserevenuefromthe
usesatissuehere.

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SavetreesreadcourtopinionsonlineonGoogleScholar.

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