John is the owner of John's Electronics, which, as its name implies, is a retail electronics store. John decides to place an advertisement in the local Newspaper (Nancy). John speaks with the head of Nancy's advertising department and outlines her overall vision of what the ad should look like. John also gives Nancy a blank piece of letterhead stationery showing a drawing of the John's Electronics storefront and a few standard items for sale there. These drawings were all made by John. John told Nancy that he wanted the drawing of the store and the other items shown on the letterhead to be incorporated into the ad. Nancy's advertising department then produced the ad, incorporating the drawings made by John and adding others drawn by Nancy's art staff. Nancy also added some phrases about the quality of the equipment sold by the store and the high level of service in composing all of these elements into the final advertisement. Once the ad was completed, Nancy showed John a printout and John approved. John gave a check to Nancy, which contained a legend on the back, where the endorsement was to be made, stating "In full payment for the advertisement prepared by Newspaper as a work made for hire and as a joint work with Edie and for the transfer of alt other rights." This check was duly endorsed by Nancy and deposited in Nancy's bank account. The ad then appeared in Nancy's newspaper.
John later runs the same ad in some competing newspapers. Nancy brings an action against John for copyright infringement. John argues that he cannot infringe because he is the author at least a joint author of the advertisement and in any event is the owner of the copyright on also argues that, if he is neither an author nor a joint author, his running the ad is a fair use. Assuming the above facts are proved, how would you as judge decide the case? (Do not consider claims Nancy may have against the competing newspapers.