Derivative work is the way people advance, gaining credibility and respect. People familiar with the base work can evaluate derivative work in context ("this is way better"). In contrast, it's much harder to evaluate a wholly original work.
The most famous community that does this is academia, especially science, with one author confirming or disproving another's work. Or extending. All these are technically derivative works.
Excessive copyright protection against derivative work prevents progress. It also has a sinister aspect: a barrier to entry into the field. The copyright holder of the previous work can withhold derivative work licensing to those it does not want to succeed.
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