Again, in a work of fiction it's very hard to pursue this.
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[...] but the chances are low enough that length really isn't what he'd have to worry about.
I agree, but the problem is still in the difference between being able to, and doing it.
Unless justice directly claim that the lawsuit is not receivable, there's company which will not care if they have to spend $US 50.000, even knowing that they'll loose. As long as it will result by people fearing to use their brands' name in their games, for them it's money well used. And most of the time they don't even have to spend this much, because the guy at the other side will back off after the first e-mail and/or his ban from Patreon, youtube, or whatever.
It doesn't mean that authors should avoid using brand's name in their game, just that there's some companies which must be avoided.
Semantics, it's exactly how you say, and this section of fair use would be referred to as the law regarding parody.
I know that it's semantics, but we are talking about Law here, and semantics is a big part of it. If you receive a copyright infringement notice and respond that your work fall under the parody law, you'll have less chance to reach to an accord, that if you say that it's a parody and so is Fair Use.
In the first case, you'll be seen like someone who don't really know what he talk about, and so can probably easily be fooled. In the second one, you'll show some knowledge, and the guy from the juridic service will be more cautious. The impression you make is your best insurance in case like this.
If you use their established world, even as an homage, they can, and will, argue that your project counts as a derivative of their work. I can't simply write and sell a story based in the Star Wars, or Harry Potter universes.
Machinima don't use Skyrim world, they use Skyrim. It can't be compared to anything else except other games, because it do not respond to the same concept. They aren't writing a story based on Skyrim, they are in Skyrim writing a story based on the universe they are in.
What would have been illegal here, is if they used Skyrim, but a modded Skyrim that absolutely not correspond to the effective game. Then it would have been illegal use of the game engine. It also would have been illegal if they had used another game, modded it to looks like Skyrim, then tell a Skyrim story by using it.
But using Skyrim to tell a story based on Skyrim, there's absolutely nothing illegal in this. Like there's nothing illegal in writing a story based on the Star Wars or Harry Potter universes. Same, there's nothing illegal in the fact to make this story public, as long as it's harmless for the brand name.
The only thing illegal is to earn money by doing so ; yet, the rights owner can choose to not take action against you, seeing the money you earn as a just compensation for your works and the homage you give to the universe. And that's, apparently, the case for Machinima.
Parody is not clearly defined,[...]
I'm not familiar enough about the US Law, but I think that
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can be trusted on this subject :
"The key factor for a parody to qualify as fair use is whether the parody is transformative -- it adds something new, with a further purpose or different character altering the copied work with new expression, meaning, or message."
It's, of course, subject to variation, because the alteration is itself subject to interpretation ; by example, just changing the color of skin will not be enough alteration to fall under parody. Still it seem to be clearly defined ; opened to interpretation, but not opened to any interpretations.
If you wrote a serious porn comic, but based that comic in Skyrim, and either drew it yourself, or rendered your own models to serve as the characters, you'd be in parody territory.
Yes, and there's few tumblr that do so. Still they can only be shutdown by justice if Bethesda, then justice, think that it's harmful for the image of their game.
If you modify their game to add sex to it and then take screenshots in game to make up their game's content, they'd be in murky territory.
No. With the same limitation that above regarding the image, you're just using the game. That's what you didn't understood in the rest of my comment. A company can't sue you for the use you make with their product. Even when the ToS claim that you must use it as a good family's father, they can't in fact really enforce this.
If Bethesda sue you for this, it will be because they see it as harmful for the image of the game. They have almost no chance to win if they sue you because you didn't used the game like they thought is should be used.
It's the same if you use a screwdriver to kill someone, the manufacturer can't sue you because their product aren't supposed to be a weapon. Or if you use a bottle of Coca to make your girl climax (clean it before, please), Coca can't sue you because it's not designed to be a sex toy.
I don't know what you mean by "Its not bethesda that can sue you in this case..." They should be the only one who can.
See above. The manufacturer/seller of a product can't sue you for the use you made of it, but the victim or the state can do it, depending of what you did.
If you make a bomb by using fertilizer, Mosanto can't sue you (well, they'll still try I'm sure), but the government can because you intend to use it as a terrorist weapon. You'll not be sued because you misused the product, but because of what you did with it.