>Although the production/distribution companies own the film rights, >does not the individual who actually 'grabs' the image and then >transfers it into some kind of presentational format >equally 'producing' the image - i.e. what the prod-dist companies >own is the moving picture image, while we are producing a specific >still.

No, video grabs and frame enlargements are explicitly protected, see Title 17, Section 106(5) "including the individual images of a motion picture".  Even if this wasn't true they would almost certainly constitute a derivative use and still be protected.  Actual production stills would be covered by a different copyright, usually owned by the studio since the original photographer is most likely doing work-for-hire.  However, classroom use may be exempted, see section 110.

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