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This information is taken directly from the court opinion. It is not taken out of context nor is it altered.
From Lee v. Deck the Walls, Inc., 925 F.Supp. 576 (N.D.Ill.1996):

In support of its argument, Annie Lee contends that the tiles fall within the definition of derivative work in that they are either art reproductions or, at the very least, are the result of recasting, transforming or adapting the original work. Annie Lee cites to the Mirage Editions and Munoz cases as persuasive authority. ART responds that, while the two cases do in fact support Annie Lee's argument, the courts involved were in error and reached a result contrary to established case law and the Copyright Act. ART argues that there is no difference between the mounting process and the framing process. Rather than a "derivative work," ART argues that the process is a mere method of using and displaying the purchased copies of Annie Lee's art work. Thus, this case turns on whether each ceramic tile is (1) a "work" derived from Annie Lee's work or (2) a mere medium of display. The Munoz court rejected ART's argument that the ceramic tile is a method of display. In so holding, the district court made the following distinction between framing and mounting a work onto ceramic tile:

Placing a print or painting in a frame and covering it with glass does not recast or transform the work of art. It is commonly understood that this amounts to only a method of display. Moreover, it is a relatively simple matter to remove the print or painting and display it differently if the owner chooses to do so. Neither of these things is true of the art work affixed to a ceramic tile. Moreover, tiles lend themselves to other uses such as trivets (individually) or wall coverings (collectively).
Munoz, 829 F.Supp. at 314. In a footnote, the Munoz court again noted the "significant distinctions between framing and permanently affixing to a substance which lends itself to uses other than merely hanging on a wall." Id. at 314 n. 4. The court went on to reject the applicability of the First Sale Doctrine, and found the ceramic tiles to be copyright infringements.

Respectfully, this court disagrees with the Munoz court; the court finds the proffered distinctions between framed art and "tiled art" unconvincing and without support. [page 580] Both framing and tiling utilize the same works purchased from the copyright holder and do not involve "copying" as defined by the Copyright Act. Both processes involve trimming the original image to fit it to the appropriate size of the tile or frame respectively, securing the image to the tile or mat with some type adhesive or clip, and covering the art with a clear covering, epoxy resin and glass respectively.

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