The status of parody and related derivative works within the UK copyright framework lacks clarity and has been recommended for further policy study in two recent independent reviews: the Gowers Review of Intellectual Property in 2006 and the more recent Hargreaves Review of Intellectual Property and Growth published in 2011. This recent review highlights the dual importance of parodic works both as a form of cultural expression and as a potential source of innovation and growth. A key recommendation of Hargreaves is for the UK to introduce a new fair dealing copyright exception for parody. However, a shortage of empirical data renders policy intervention in this area difficult. The issue is complicated by the inherently creative nature of parody, ambiguity about its definition and the multiplicity of economic and legal approaches that may be applied. In December 2011, following an open call to tender, the UK Intellectual Property Office (IPO) commissioned research from the Media School and the Centre for Intellectual Property Policy and Management (CIPPM) at Bournemouth University to undertake research into the potential effects for rightsholders, creators and audiences of introducing a copyright exception for Parody in the UK. This document reports the key findings of the empirical study carried out by Dr. Kris Erickson and research assistants at Bournemouth University. The primary purpose of this research is to assess the potential for economic damage to rightsholders should an exception for parody be introduced. First, it provides an overview of the online video market, the field site, and the methodology used. A sample of 8299 user-generated music video parodies was identified relating to the top-100 charting music singles in the UK for the year 2011. The main body of the report discusses the empirical findings that emerge from the stud