Fair Use in Art
Artist may invoke Fair Use to incorporate copyrighted material into new artworks in any medium, subject to certain limitations:
Artists should avoid uses of existing copyrighted materials that do not generate new artist meaning, being aware that a change of medium, without more, may not meet this standard.
The use of a preexisting work, whether in part or in whole, should be justified by the artistic objective, and artists who deliberately repurpose copyrighted works should be prepared to explain their rationales for their use and the extent of their uses.
Artists should avoid suggesting that incorporated elements are their original work, unless that suggestion is integral to the meaning of the new work.
When copying another's work, an artist should cite the source =, whether in the new work or elsewhere (statement, labeling or embedding), unless there is an aesthetic basis for not doing so.
Did the use “transform” the copyrighted material by using it for a purpose significantly different from that of the original, or did it do no more than provide consumers with a “substitute” for the original?
Flowers: Patricia Caulfield and Andy Warhol

After a decade at Modern Photography, Patricia Caulfield became its executive editor in 1964. In the June issue that year, Caulfield's photo of an arrangement of blossoms in Barbados appeared with an article.
Andy Warhol called the magazine, wanting to buy the image, but he felt the price was too high. According to the lawsuit Ms. Caulfield filed in November 1966, he clipped the picture from the magazine, cropped it, and produced silk screen paintings for what became his “Flowers” series, first shown at the Leo Castelli Gallery in Manhattan in November 1964.

The “Flowers” series became one of Andy Warhol's most renowned and commercially successful works of art. Warhol appropriated, cropped, flattened, and distorted the image, rendering it boldly graphic. By reproducing the same image in large quantities, he obtained a decorative effect, similar to wallpaper, transmitting the aura of 1960s consumerism and advertising.
As part of a settlement that Ms. Caulfield and Warhol eventually reached, he created two new “Flowers” paintings for her (the Castelli gallery would sell them for $6,000). He agreed to pay her a 25 percent share of the royalties derived from a portfolio of “Flowers” prints.
Other stolen, appropriated, and fair uses cases by Andy Warhol: Life magazine photographer, Henri Dauman's photo of Jackie Kennedy. Photographer Lynn Goldsmith’s photo of Prince. Photographer Gene Korman's photo of Marilyn Monroe.
References:
College Art Association, and Peter Jaszi. Code of Best Practices in Fair Use for the Visual Arts, College Art Association (2015). https://www.collegeart.org/programs/caa-fair-use/best-practices