Google "Richard Prince copyright". This is not a new issue, not even close.

BTW... She is using a still[0] from a video that CNN owns the copyright to, and section 3 of their tos[1] explicitly forbids doing what she is doing - with the unnecessarily stated exception "as otherwise expressly permitted under copyright law". You really want to take that exception away from her? I can pretty easily argue that her use is transformative, can you? How does this differ from what she is complaining about?

[0] http://www.erynnbrook.com/white-feelings-for-charlottesville... [1] https://www.cnn.com/terms