Normally, I'd come down on the side of the guy doing the parody. Political parody should be protected free speech.
But this -is- a bit much. Not that I think anyone with half a brain shouldn't figure out it's a joke, but I can understand why CNN would be upset. If you look at the bottom left of the parody, it even includes:
"2004 Cable News Network LP, LLLP.
A Time Warner Company. All Rights Reserved.
Terms under which this service is provided to you.
Read our privacy guidelines. Contact us."
Fraudulently using their copyright notice, even in a parody, is to me a bit over the top as "parody". And the only indicator (other than content) that it's a parody that I could find is the tiny "Misleading edition" on the top right. CNN's got a legitimate complaint here, I think - I'm not saying they should -win-, but I don't think it's out of line that they would consider legal action either. Had they not just cut and pasted the CNN copyright notice where they did, CNN wouldn't have a case in my view, but with it.... well, if I were in their shoes I'd be upset too.
Qwinn
Why not politely ask Mr. Cox to remove the copyright notice before starting down the litigious route?