Apparently there was a case in 2013 where the fan game My Little Pony: Fighting is Magic got taken down by Hasbro.
This makes me wonder, why did it not fall under fair use in terms of Parody?
[...] a parody is a literary or artistic work that imitates the characteristic style of an author or a work for comic effect or ridicule. It is regarded as a criticism or comment on the original copyrighted work. In simple terms, it has to convey to the audience some type of message about the original work. This “message” fits can be understood to transform the original work (the work that’s being parodied) because that message is adding something new; it takes all or part of the original work and gives it a different purpose or character. [...]
Making a game about characters from this TV show fighting each other, when in the series it's all about loving each other could be seen as criticism or comment on the peacefulness of the original characters. So why doesn't that count as parody?
In a related fashion, I'm thinking about a game where giant dynamaxed Pokemon unleash death and destruction onto the world. If PETA's Pokemon clone is parody, wouldn't an overly brutal version of Pokemon be parody as well? I would be creating my own assets.
What exactly is and isn't parody?