This blog has previously examined some of the complex legal issues surrounding graffiti art.  From the public fascination with street artist Banksy to the recent litigation over the destruction of a graffiti art repository at the 5Pointz site in Queens, this genre of art poses unique questions and problems for those who create it, those who own the property where it was created, and those who wish to use images of such works.

Earlier this week, the United States Court of Appeals for the Seventh Circuit addressed the scope of the “fair use doctrine” as a defense to copyright-infringement claims.  In doing so, the court had some harsh words for the Second Circuit’s much-anticipated decision last year in Cariou v. Prince.  The court’s ruling is the latest to analyze the significance of “transformative use” in determining the fair-use defense, and it sets up an interesting divergence among the Circuits on this important topic.