Earlier quoted context omitted.
Why does it have to be verbatim? Seriously, this I don't understand. If I produce a terrible shakycam recording of a film while sitting in a movie theater, it's not a verbatim copy, nor is it even necessarily representative of the original work -- muddied audio, audience sounds, cropped screen, backs of heads -- and yet it would be considered copyright infringement? How many times does one need to compress the JPEG b…
The purpose of copyright is it progress the arts and sciences. Not to guarantee profit. Guaranteeing profit is just the way we encourage people to progress the arts and sciences. That is why so called derivative works are allowed (and even encouraged). If copyrighted material is ingested, modified or enhanced to add value, and then regurgitated that is legal, whereas copying it without adding value is not legal. If d…
Derivative works are not "allowed (and even encouraged)" without a license from the copyright holder. Creating a derivative work is an exclusive right of the copyright holder just like making verbatim copies and requires a license for anyone else, unless an exception to copyright protection (like fair use) applies.