I have a question regarding copyright law.
Take this for example: Company A owns the copyrights of Picture A. Some designer came across this picture and proceeded to save the picture into his computer. He then began transforming picture A by adding drawings or words to the picture. Ultimately, he managed to bring about an entirely new expression of his own to Picture A. He then proceeded to upload his transformation of the picture on his personal website, and attempted to sell it for profit.
In this scenario, does his picture constitute a new, original work, or does it constitute a derivative work? And ultimately is there any copyright infringement?