[pcrh]

Why was the royalty payable only on unused stamps? Surely if a royalty was due, it should be on all stamps that used the image?

[jhall1468]

Seems the court accepted the fair use argument for the stamps that were sold and used, but the "pure profit" stamps that weren't didn't pass the muster.

[mkl]

The stamps that were used were used as payment for mail transport and delivery. There was presumably no profit there (it's not a company trying to make money), so no net benefit to the USPS from the use of the photo.

[pcrh]

I doubt an argument based on lack of profit would hold in other cases of intellectual property infringement by a major corporation.