Quote: Not all IP is the same. What you say applies to copyright and patents (though afaik "fair use" only applies to the former), but it's less clear about trademarks. Trademarks don't prevent you from using the words at all, just that you cannot use them to market a product in a similar market. I'm not sure whether distributing a game for free would count or not.
That was exactly the point of my post: the exchange of money/goods/services in relation to one's use of an IP has absolutely no bearing on whether it's legal or not. All it does is potentially reduce the offender's liability and at best would get you off with a slap-on-the-hand.
And in regard to trademarks, it varies based on whether there would be potential confusion and whether it's a TM (trademark), (R) (registered trademark) or SM (service mark). AFAIK, registered trademarks (R) are pretty much completely protected. I.e., Kodak is a made-up word, it's (R), and I can't use it to label my new fancy hat that I call the "Kodak Hat" as there would be potential for confusion in the eyes of the customer.
Quote: In theory you can include trademarks in your game if you don't profit from the distribution... ...incorporation into a game is fair use as long as it is a not-for-profit fan game.
No, no, no, no, no... see the statement above.