Copyright – Fair Usage

The following passage is law in the United States of American but there are similar clauses in most countries:
* 107. Limitations on exclusive rights: Fair Use
Notwithstanding the provisions of sections 106 and 106A, the fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright. In determining whether the use made of a work in any particular case is a fair use the factors to be considered shall included: he purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes; the nature of the copyrighted work; the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and the effect of the use upon the potential market for or value of the copyrighted work. The fact that a work is unpublished shall not itself bar a finding of fair use if such finding is made upon consideration of all the above factors. 17 U.S.C. � 107 (1988 ed. and Supp. IV).

17 USC 107: In determining whether the use made of a work in any particular case is a fair use the factors to be considered shall include:
(1) the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work. The fact that a work is unpublished shall not itself bar a finding of fair use if such finding is made upon consideration of all the above factors.
Example answer from a fake picture creator:
(1) The exposing work is done for the benefit of the public. It’s a digital caricature of the celebrity for fun and fantasy or criticism and commentary. (2) The images are heavly digital retouched and altered. The images are reduced in size to limit the potential for others to copy the images from me and redistribute them. (3) The images used are minor samples or parts from massive collections and in no way damage the full collections. (4) My use of these images would in no way reduce the value or marketability of the images. In fact, my use of the images may increase the value of the originals.

Fake images are freely created and posted on public newsgroups by people around the world. These images are digital caricatures done for fun and fantasy. The creator wants to spread and see other people redistributing his work.
As for ownership rights, you can’t copyright a fake unless you’ve drawn the whole thing yourself or you’ve obtained permission to use the base photographs. Without this, you have no control as to how your fake is used once released. The copyright for any material created by Celebrityfakes.co is reserved and any duplication or use of such diagrams, sounds or texts in other electronic or printed publications is not permitted.