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I can somewhat understand the model's position in the example you cited, Tom. She posed and was paid for her posing, so its use without further recompense, if such recompense was promised or implied, could be actionable. Where you're taking photos of people in public places, though, it would be difficult for them to be certain that they were used as the inspiration for a painting if you made sure there was no likeness. But the whole situation seems much more complex and full of pitfalls than I'd thought.
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