This one is going to be incredibly short because, really, it's cut and dry.
One argument I've heard in defense of Fairey is that even if the Associated Press one, the original photographer wouldn't be compensated. The problem with that argument, though, is that it's still the property of the Associated Press.
Mannie Garcia is the freelance photographer who took the photo under a work-for-hire provision. That means the work created by the freelancer was bought by the Associated Press and they own it, not the original creator. While Mannie thinks it's "pretty cool", which I won't lie, it is, there's still the fact that the Associated Press has a point.
So in this I think is a lesson to any and all freelancer's out there: Realize that when you do work for a client, sometimes your waving your rights as a creator by doing it as a "Work-for-Hire". Doing something as a "work-for-hire" is always risky since you never know what sort of life the piece of art will take on later on.
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