When a court looks at the binding precedent of Suntrust v. Houghton Mifflin in which fair use and parody specifically was upheld for novels, will they care about a settlement in which the plaintiff received not one penny? I don’t think that’s how precedents work...
No, settlements are not precedent, only court rulings are. The point is that merits of this case were never ruled upon by a court. The appeals court ruling in Suntrust was about the injunction that had been granted, not the merits. So, yes, the next time someone sues over this in the Eleventh Circuit, there won’t be a preliminary injunction granted, and whatever work is being disputed will able to be published until the case is resolved by a jury (or settlement). But that doesn’t bind how the jury will rule. And it certainly doesn’t bind other circuits—in fact, a court in a different circuit could even issue an injunction, in which case there would probably be a Supreme Court case about the injunction issue.
EDIT: To put it succinctly: the precedent is “the book can be published until the case is decided”, not “writing a new novel using someone else’s characters constitutes fair use”. (And it is only binding in the Eleventh Circuit.)
When a court looks at the binding precedent of Suntrust v. Houghton Mifflin in which fair use and parody specifically was upheld for novels, will they care about a settlement in which the plaintiff received not one penny? I don’t think that’s how precedents work...
No, settlements are not precedent, only court rulings are. The point is that merits of this case were never ruled upon by a court. The appeals court ruling in Suntrust was about the injunction that had been granted, not the merits. So, yes, the next time someone sues over this in the Eleventh Circuit, there won’t be a preliminary injunction granted, and whatever work is being disputed will able to be published until the case is resolved by a jury (or settlement). But that doesn’t bind how the jury will rule. And it certainly doesn’t bind other circuits—in fact, a court in a different circuit could even issue an injunction, in which case there would probably be a Supreme Court case about the injunction issue.
EDIT: To put it succinctly: the precedent is “the book can be published until the case is decided”, not “writing a new novel using someone else’s characters constitutes fair use”. (And it is only binding in the Eleventh Circuit.)