zlacker

If I take a million copywritten images from magazines, cut them with scissors, and make a single collage, I would expect the resulting image to be fair use.

That’s not how it works. Your collage would be fine if it was the only one since you used magazines you bought. Where you’d get into trouble is if you started printing copies of your collage and distributing them. In that case you’d be producing derived works and be on the hook for paying for licenses from the original authors.

>>chongl+(OP)
That’s not how fair use works. It’s not a binary switch where commercial derivatives automatically require licensing. Such a college would be ruled transformative and non competitive.

Me having bought the magazines also has nothing to do with anything. Would apply equally if they were gifted or free or stolen.