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Question about fair use

Zacmonkey

Smash Rookie
Joined
Oct 26, 2015
Messages
2
Location
The blast zones
NNID
ZacharyH-J
Literally couldn't find any other forum or help on this subject so i'm putting this up for debate here because its somewhat related.
So a while back I found a tool on some random japanese website that converts midi files to chiptunes. The problem arises when I used a chiptune version of melee's main theme in a youtube video and it gets claimed. I found throguh the notice link that the claimant is selling the track in an album on google play.

So the questions here is, since the midi was up for download and public use:

Am I allowed to use it in a video
Are they allowed to sell an album made fully of free midis sent through a converter
Is there some dumb whoever uses it first owns it and gets to claim on it.(Or what are the rules concerning this)

And If It's fine for me to use I'd like to know how to file the dispute for this particular subject because it's quite novel.
 
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