I read this article today:
I think it’s ridiculous that Andy Baio got sued by the photographer for making a pixelated art version of the Miles Davis album. I think if you’re not making a profit on it, it should be fine to do “remixes” or “covers”. If you do want to make a profit, you gotta reach a settlement with the original artist. Simple as that. They gotta get paid too. It was just a pixelated form of the album cover, if anything that’s enough work put into something to make it not copying.