For a company to sue someone for copyright infringement, they must reasonably prove that the defendant has either done at least one of these three:
- Noticeably divert potential income from the copyright holder.
- Would convince and detach the consumer from ever consuming the original content in a meaningful way.
- i.e. why would the consumer ever consume the original content, and does the protentional copyright infringement make it pointless to consume the original content. (Not transformative enough.)
- Damage the reputation of the brand, company, or company associates.
If they cannot prove any of the above, then the defendant should be protected by fair use.