Campbell v. Acuff-Rose Music, Inc., 510 U.S. 569 (1994) (U.S. Supreme Court)
Campbell v. Acuff-Rose Music is the Supreme Court's seminal modern fair use case, decisively embracing the concept of transformative use and clarifying how courts should apply the four statutory factors in 17 U.S.C.
Does a commercial parody that copies recognizable elements of a copyrighted song qualify as fair use under 17 U.S.C. § 107, and may courts presume market harm from the mere fact of commercial use?
Under 17 U.S.C. § 107, fair use is assessed case by case according to four nonexclusive factors: (1) the purpose and character of the use, including whether it is commercial and whether it is transformative (adding new expression, meaning, or message); (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used relative to the work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work, including markets for traditional, reasonable, or likely derivative uses. No single factor is dispositive, and commerciality alone does not create a presumption of unfairness or market harm. Parody, as a form of criticism/comment that targets the original, may justifiably copy enough of the original to "conjure up" the work, so long as the taking is not excessive in relation to the parodic purpose. Market harm cannot be presumed for transformative parodies and must be proven with evidence of likely substitution in cognizable markets.
A commercial parody may qualify as fair use; commercial nature does not give rise to a presumption of market harm. The Sixth Circuit erred by presuming harm and misweighing the factors. The judgment was reversed and the case remanded for further proceedings under the correct standard.
Campbell is the cornerstone of modern fair use doctrine. It elevates transformative use as the central consideration under factor one, cabins the Sony presumption of market harm, and articulates how parody fits within fair use, including the permissibility of borrowing the "heart" of a work when necessary to conjure it up. The decision guides courts to conduct an evidence-based, factor-by-factor inquiry without categorical rules against commercial uses. For students, Campbell illustrates statutory interpretation, common-law development within the Copyright Act, and the nuanced treatment of speech interests in the fair use framework. Its reasoning has influenced numerous later cases assessing transformation and market harm across media and technologies.