Austin Powers is not fair use?

Austin Powers is not fair use? Goldmember, the new Austin Powers movie, is a send-up of Goldfinger, and it's in trouble. MGM claims that Goldmember infringes its copyrights on the James Bond franchise, and while AOL/Time-Warner/Netscape/Mrs. Field's Cookies/Joe's Bar and Grill negotiate a settlement with MGM, they've pulled trailers, links, posters and other mentions of the upcoming flick from both the Web and meatspace. Correct me if I'm wrong, but copyright law includes a specific exemption for parodical uses of copyrighted works, provided that the parody is directed at the copyrighted work (IOW, you can use a Madonna tune to make fun of Madonna, but not of the medical profession, which is why Weird Al needed to pay a licensing fee for "Like a Surgeon"). Why aren't Time-Warner's lawyers telling MGM to get stuffed?

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