As I pointed out in another reply
"It's actually not identical [or produced by a Photoshop Filter]. Pixel art takes a lot of time & skill to create a sharp, decent looking image with a limited amount of space & a limited palette. For example take a look at the tie. It took someone the time to recreate that particular pattern, which is different from the original yet looks sharp & punchy."
He has a good case for fair use but the line is so fine that he has a reason to be worried about the courts ability to make a sane ruling.