"Hope" in Dispute - Copyright vs. Fair Use
Street artist Shepard Fairey who created the famous Hope image of Barack Obama sued The Associated Press, claiming his use of an AP photo in creating the poster did not violate copyright law, because he has dramatically changed the nature of the image and therefore, is protected under the so-called "Fair Use" provisions.
The AP said it is owed credit and compensation for the artist's rendition of the original photo taken by Mannie Garcia who was on assignment for the AP at the National Press Club. (Read the whole story).
Maybe reading Elizabeth T. Russell’s Art Law Conversations : a surprisingly readable guide for visual artists (2005) might help clear up the muddle? But I doubt it.
BTW...signed originals of both the Hope poster and the Garcia photo have been acquired by the National Portrait Gallery, Washington D.C.