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Can a person violate copyright by taking notes? For example if I am reading a book and want to copy a full paragraph, word for word, into my notes and don't cite it, is that copyright violation? What if the notes are online (Google Drive) and I want to add a picture, and I copy and paste a picture of McDonald's or a famous piece of artwork into it. Technically, would that be breaking copyright?

My understanding is that fair use has nothing to do here as fair use applies to something (sort of) new.

DannyD
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Well, actually, fair use is maximally relevant. Copyright means, put simply, DO NOT COPY. Citing or not is irrelevant (plagiarism is a whole other non-legal kettle of fish). Technically, what you describe is violation of copyright. However, under section 107 of Title 17 (the copyright law), you could attempt to defend yourself against an infringement suit on the basis that your action was "fair use". See this LSE q&a for the essentials of fair use.

user6726
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