If you’ve used copyrighted books and turned them into a free write-a-book machine, you are suddenly using the authors own works against them, in a way that a judge might rule is not very fair.
“ Effect of the use upon the potential market for or value of the copyrighted work: Here, courts review whether, and to what extent, the unlicensed use harms the existing or future market for the copyright owner’s original work. In assessing this factor, courts consider whether the use is hurting the current market for the original work (for example, by displacing sales of the original) and/or whether the use could cause substantial harm if it were to become widespread.”