BoingBoing points to this YouTube video involving Brian De Palma and references to the inadequacy of fair use.
Fair Use at the NY Film Festival
October 11, 2007
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Law Bytes
Episode 231: Sara Bannerman on How Canadian Political Parties Maximize Voter Data Collection and Minimize Privacy Safeguards
byMichael Geist

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And Canada is worse
It was frustrating to watch US documentary makers talking about this knowing that Canadian law is even worse in this area. And rather than having treaties aimed at protecting authors rights by maximizing Fair Use, we have treaties aimed at taking away from creators the basic right to control the technology necesary to create, edit and distribute most creativity.
And much of this anti-creator agenda coming out of the US government.
Sounds like not so much a fair use issue (or at least, not just a fair use issue) but also a right of publicity/privacy issue. Definitely a shame.