No, that's totally incorrect, we do not consider every observation a "transformative use" as applied to the human mind. If you memorize a copyrighted play and write another play it is NOT inherently a copyright violation of everything which has come before. We just don't do that.
The new play is judged as to its originality.
People who have seen a play (everybody) are allowed to write new plays which aren't beholden to the copyright of the first play they've ever watched.
The new play is judged as to its originality.
People who have seen a play (everybody) are allowed to write new plays which aren't beholden to the copyright of the first play they've ever watched.