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FAIR USE Act
The "Freedom and Innovation Revitalizing United States Entrepreneurship Act of 2007" was a proposed United States copyright law that would have amended Title 17 of the U.S. Code, including portions of the Digital Millennium Copyright Act to "promote innovation, to encourage the introduction of new technology, to enhance library preservation efforts, and to protect the fair use rights of consumers, and for other purposes." The bill would prevent courts from holding companies financially liable for copyright infringement stemming from the use of their hardware or software, and proposes six permanent circumvention exemptions to the DMCA.
What Work Does Copyright Protect? Literature
Music
Motion pictures and other audiovisual productions
Sound recordings
Pantomimes and choreography
Pictorial, graphic, and sculptures
Architectural designs. Fair Uses of Copyrighted Material Under the Copyright Act, the fair use of copyrighted material without permission is allowed when used for the following purposes:

Criticism;
Comment;
News reporting;
Teaching, includes making copies for use in the classroom;
Scholarship and research;
Parody.

The Fair Use Four-Factor Test
Courts consider four factors when evaluating whether an unauthorized use of copyrighted material is fair. The following factors are guidelines under the Copyright Act:

The purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes: Courts consider whether the use is transformative. For instance, was the purpose of the new use transformative, did a new expression change the original work, or did the use create new information or lead to new ideas? The more transformative a new work, the more likely a court will consider it fair use.
The nature of the copyrighted work: Courts look at whether the copyrighted work is creative or factual and whether it is published or unpublished. Creative works, such as fiction, creative nonfiction, pictures, and graphic works, typically receive more protection. Factual works, such as history accounts and scientific works, receive less protection because of the benefit to society from the exchange of ideas . Authors have a right to decide when to publish their work, so the use of unpublished works without permission is less acceptable than using published works.
The amount and substantiality of the portion used in relation to the copyrighted work as a whole: Courts consider how much material was copied and was the copied material a central part of the original work. When a large portion of the entire copyrighted material is used or it includes the use of a central point, it is less likely that a court will consider it fair use. For, parody, however, it is acceptable to borrow a large portion and to use the central part of the original work.
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