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> Copyright, at least in the US, cares about the effect of the use on the market for that specific work.

Not quite. The historical implementation of copyright has mostly protected individual pieces of work. Not only does IP law broadly protect much more than individual pieces of work, but the philosophical basis of IP law in general is to protect incentives. Now that the technological landscape has shifted, the case law will almost certainly shift as well because it’s clearly undesirable to live in a world where no one is willing to dedicate themselves to becoming an excellent artist/writer/musician/etc.

IP law is a natural extension of property rights, which in turn is predicated on a utilitarian need to protect certain incentives.




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