Copyright Violation Court Case

In this particular case I believe that Shepard Ferry did not violate Copyright Law. The manipulation that he did to the image would allow it to be put under "Fair Use". He used the previous image to create something new; he added text, a symbol, and changed the way we perceived  the image by adding the patriotic colors throughout the entire piece. A viewer would read this new image in a completely different manner than the original one because Shepard Ferry brought meaning to his new creation and it was used all over the United States to Promote Obama's campaign. The original meant none of that sort whatsoever, and I would say technically the new image was used for news reporting when talking about Obama's campaign, which would also put it into Fair Use. Overall, these facts cause me to believe Ferry was in the right and broke no laws pertaining to his action.