Legal Question in Intellectual Property in Washington

Re: Copyrighted photo inspires art - Can I claim Copyright to the new work?

Probably. Although you were inspired by the original work, the question is how much of the original work was actually 'copied'. Copyright holders own derviative uses of their work, but when only a small portion (outline) is used, the 'borrowing' may become a fair use of that work as a basis for a new work. If the original work is recognizable (discernable) from a viewing of your new work, then there may be a problem. The uniqueness of the original work, if famous for example, or generally recognizable will give that work broader rights than just an average photograph. This is not an easily answered question. Courts are grappling with this issue. When a work of art is digitized and manipulated, at what point does it pass from being a "derivative" work, and become a 'new' work of art? There is no clear answer here.

Re: Copyrighted photo inspires art - Can I claim Copyright to the new work?

You can claim copyright on your highly modified art which was created by tracing a photograph and then altering the image.

In all probability, nothing adverse will happen to you if you reproduce and sell your artwork, however there is the remote chance that the owner of the copyright on the photograph will make a claim against you.

However, this is only speculation since it is only based on your biased statements. You need to have the matter reviewed by an experienced copyright lawyer to be safe rather than sorry. Spend a few dollars now to save your peace of mind and to save many dollars later. The fact that you ask the copyright question should tell you that you need professional advice.