Well, look at Wikimedia.
https://commons.wikimedia.org/wiki/File:This_Is_Fine_(meme)....
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Here is a direct example of a derived work, to the point where the prompt is "n orange-brown anthropomorphic dog sitting in a chair at a table in a room that is engulfed in flames, happy dog sitting on chair at a table viewed from the side, dog with a hat, room is burning with fire all across the room".
That's covered by Fair Use, I suppose they will argue this if they get sued. Interestingly, commons doesn't allow Fair Use, but the according to commons, "this is not a derived work".
https://commons.wikimedia.org/wiki/Commons:Deletion_requests...
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Thank you, interesting! I don't know that much about Fair use: if I understand well, the key is that the use should be "transformative", right? Am I correct in understanding that: - if the original "This is fine" meme was under copyright, the dog picture would be exempted from copyright by Fair use as it's a transformation - here it's not even needed since the original is not under copyright ("this is not a derived work")
It was a batshit insane decision, and a wrong one. Also: Commons doesn't allow for Fair Use images, so actually the decision was made that this wasn't transformative as it wasn't a derivative image.
You tell me if that was a derivative image or not. I argued it was, and the argument was completely ignored.