In the case of Luther R. Campbell AKA Luke Skyywalker, et al. v. Acuff-Rose Music, Inc., 1993, the U.S Supreme Court ruled in favor of rap group 2 Live Crew's right to parody Roy Orbison's song "Oh Pretty Woman" without permission from Acuff-Rose Music (the copyright holder). The court held that a commercial parody can qualify as fair use under Section 107 of the Copyright Act of 1976 and rejected Acuff-Rose’s argument that any commercial use is presumptively unfair exploitation of copyrighted work. This decision overturned an earlier ruling by a lower court which had found in favor of Acuff-Rose on grounds that financial gain was presumed to outweigh considerations for fair use exceptions to copyright law.

In the dissenting opinion for Luther R. Campbell AKA Luke Skyywalker, et al. v. Acuff-Rose Music, Inc., Justice Kennedy argued that 2 Live Crew's commercial parody of Roy Orbison's song "Oh, Pretty Woman" was not a fair use under copyright law because it took more from the original work than necessary to make its parodic comment and had potential to harm the market for Orbison’s original song and derivative works. He emphasized that while parody can be transformative and thus qualify as fair use, this does not mean all parodies automatically fall within this exception; each case should be evaluated individually considering factors such as how much of the original work is used and whether it could affect its market value negatively.