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So I've seen memes featuring Alex Jones, Scooby Doo, and other famous people/characters on this website. I've also seen ads on this website. How is KYM making money on ads without fear of people like Alex Jones, the makers of Scooby Doo/other content suing for making money off of their content? Is there a broad loophole in the law? Can these people/characters be monetized until someone complains?

The worst that could happen is a C&D, and there is a good thread about that.

Now, I'm not an expert but since KYM only documents memes and internet trends about copyrighted material and not making any kind of merchandise with it I think KYM is safe OP.

They can post the content alongside ads. It is only a problem if they try to sell the content. Also, if they break any copyright, the copyright owners will message the admins and the content will be taken down (or the owners will sue).

So the owners can only sue if the content isn't taken down? Meaning in order to sue, they first have to contact the site owner and request it is taken down? If it's taken down then they can't sue?

Thanks for the answers btw. I've always wondered about this.

Tom Preston throwing a fit is one that I will never forget.

Intention to make a profit isn't the only big factor for determining what is protected as fair use. It's also how much content is being used, what it's being used for, and whether or not it is replacing the original work in the eyes of the public. From what I've seen, KYM only uses small clips and images, they use them for study or parody, and do not pose a risk to the success of the source material. For example, an image of Steven Universe characters rearranged in a Loss pattern is in no way comparable to a full episode of Steven Universe and doesn't harm the source material in the marketplace.

That is correct.

KYM has a DMCA page where copyright owners can report violations and request takedowns, so they're likely covered by the safe harbor provisions of the DMCA.

So the owners can only sue if the content isn’t taken down?

Correct.