There’s an awesome Facebook group of hundreds of librarians talking about the impact of PokemonGo on their libraries and their patrons - especially the kids and teens - and they had some questions about fair use, permissible use, the PokemonGo Terms of Use and nominative use of logos. I thought some of my answers might be of interest to the wider world of educators, museum-folk and Pokemon fans - with a warning that all of this is not legal advice (nothing posted on @fyeahcopyright is), it’s US-law focused and will not apply to any other country, and may change based on changes to their ToU and/or US law.
One of the librarians asked about the Terms of Use on the PokemonGo website. It’s basically silent when it comes to fair use, which isn’t unusual; companies don’t want to explain what they consider fair use at a specific moment in time for a certain area, because the laws are actually different all around the world - most countries don’t have Fair Use, as a matter of fact.
But in the US, we do, and Fair Use is a lawful use of copyright. It’s not a defense to infringement, and since it’s a lawful use, it means that creating follow-on content that includes third-party copyrighted content (ie drawings or printouts of Pokeballs, Pokemon, Pokestops, Gyms, and even Trainers) can be lawful, especially when it’s not done for commercial purposes - and promoting library services and/or activities has never been found by a court in the US to be a commercial purpose. (I’m not sure it’s ever been litigated, but it’s definitely never been ruled commercial.)
Copyright is NOT a monopoly in the US - or, actually, any other “western” country. Therefore, creating follow-on works is not a violation of the bit in the ToU which mentions that PokemonGo content is “protected by United States and international copyrights, trademarks and other intellectual property laws.”
A question was also asked about “fannish purposes” - but Fair Use is so much broader than that. An explanation of a lot of aspects of Fair Use is at here, on @transformativeworks legal committee FAQ; you don’t have to be doing something as a fan for it to be Fair Use. You just have to do something transformative, or add commentary, educational content or discussion to it - or use it in a nominative way (ie to identify what you’re talking about).
You can think about it this way: If something ‘adds value to the original’ and allows for ‘the creation of new information, new aesthetics, new insights and understandings’ then it tilts towards Fair Use, especially if it’s noncommercial, and only a small section of the source work is taken.
If a biz/school/library/museum wants to create buttons or badges - the metal or plastic kind - that might be seen as a derivative work and thus printing things off the Internet to make hundreds of them might not qualify as Fair Use, unless the image found online was modified in a way that would be transformative. However, having a submission process for kids to submit their own fanart of Pokemon characters, or even PokeBalls or the Library as a Gym or PokeStop, and then using that content on badges (or stickers, or buttons, or “Gym Cards”) likely would be Fair Use.
Also, buying stickers, books, etc at dollar stores or party stores and repurposing all of that onto badges, buttons, gym cards, dioramas, IRL Pokestops, whatever - is not fair use but also not a copyright violation because of the First Sale doctrine. That states that if you purchase something you can do anything you want with the physical item you’ve purchased. (That’s why you only purchase a license from a stock photo site, not the rights to the image itself; they can then control how you can legally use it under the contract you enter into with them.)
A question was also asked about putting logos on a Library Website; I’m also going to talk about using that sort of content on a FB page, or using things on Twitter or tumblr or SnapChat, Instagram, etc.
You can do this. You can do this because you’re using the trademark elements in a nominative/descriptive way, which is Fair Use because in the 1980s a court said that a newspaper could have a 976-style number of New Kids on the Block stuff and advertise it that way and because they were using the brand/trademark to identify the band (ie what they were talking about) and it would be impossible to identify the b®and without using the trademark, such descriptive and nominative use was Fair Use. There are some elements of weirdness about not using more than you need to, to identify what you’re talking about, but as your audiences include kids who may not be strong readers yet, the arguments are very strong in your favor to use images, even pulled from the Pokemon website.
However, if a library - or school, museum, store or other business - wants to use fan-created art content, I strongly recommend getting the fan’s permission - or embedding the content if it’s a video on YouTube or Vine - because fans hold copyright in the elements of their work that are original to them, even if it’s based on someone else’s something. Even if they’re three years old. If submissions are happening on-site, it’s a good idea to have the submitter fill out a form - which can be the size of an index card - including their name (at least a first name), the parent’s name if the kid is under 13, and a tickybox for them to, er, tick that says they grant a royalty-free, non-exclusive license to the library to use their submission for all library-related purposes would cover all the rights necessary in an IRL context - and in most online contexts too - but not the contexts that involve sale of the fanart or fanfilms, or use of them for marketing purposes.