Transformative uses represent a novel mode of creative expression, increasingly prevalent in digital environments. Technological advancements have broadened both the need for and the scope of transforming protected works. This shift has intensified tensions between copyright holders and users, particularly when derivative works generate revenue without equitable benefit sharing. Moreover, the legal requirement of prior authorization often introduces significant transaction costs. When such derivative creations directly compete with the original work, unresolved market inefficiencies arise.

While several legal mechanisms have been proposed to reconcile the interests of rightsholders and users, comprehensive research and tailored policy proposals for Latin America remain scarce. This project aims to fill that gap by examining the legal, economic, and normative implications of transformative uses, especially in connection with user-generated content, and possible mechanisms for compensating these kinds of uses of protected works.

Through a regional workshop, the project explored the conceptual boundaries and typologies of transformative uses, drawing distinctions between the legal doctrine of transformative use and the broader concept of transformation of protected works. The discussions also addressed the legal nature of authors’ economic rights, their impact on creative markets, and the effectiveness of current regulatory frameworks in responding to these emerging challenges in Latin America.