NPR News is reporting that Shepard Fairey, the prominent street artist and graphic designer behind the OBEY and HOPE posters, has settled with the Associated Press. The AP had sued Fairey, alleging that he had used without permission a photograph whose copyright was controlled by AP. As I described here in 2009, Fairey’s defense of fair use was potentially impeded by his admission of suppressing evidence in the case, and his original legal team recused themselves from the case. The settlement was probably the best option for Fairey, as even the judge in the case urged him to settle with AP. However, the whole saga remains disappointing for those copyright observers who might have hoped for a vigorous defense (or expansion) of fair use rights.