[cwyers]

Derivative works of course being protected by fair use.

And if Genius is hosting the page that's annotated, that's one thing. If they're simply proxying it on demand and adding annotations, then I don't see how it violates copyright unless every proxy server violates copyright.

[sp332]

Derivative works are what are banned by copyright. They are the things that are not covered by fair use. Transformative works that really change a work aren't covered by copyright because they don't really count as a copy anymore. Fair use is this other thing https://en.wikipedia.org/wiki/Fair_use#U.S._fair_use_factors