Source - I'm a Milne.
I don't know who owns Milne's copyrights, but given how profitable they are, I am sure they are jealously guarded.
This legal situation is appalling; it makes a mockery of justice and humanity.
sounds more like "Fair Use", unless you imply the painting was made for the purposes of commercial advantage or private financial gain. As in: they painted it right before selling and used the image to advertise the house to young couples.
It also highlights the ridiculously broad law at the Federal level that essentially allow US Attorneys to function like medieval inquisitors than prosecutors of a democratic state. Copyright happened to be the pretense.
(Weirdly, the UK has a special law granting permanent copyright in Peter Pan, with the royalties going to Great Ormond Street children's hospital. https://www.gosh.org/about-us/peter-pan/copyright/ )
May be actually getting in jail is difficult but a threat of jail in a criminal copyright infringement persecution can be devastating as the tragedy of Aaron Swartz [0] so vividly illustrates [1].