I remember a good friend of mine, who had been a puppeteer and member of the Puppeteers of America for decades, telling me a story about Jim Henson and his views on Muppet knock offs. This was back in the hey day of the Muppets, so I'm thinking late 70s early 80s. At the time, alot of independant companies who performed shows were performing with characters that were basically Muppety or almost literal knock offs of Muppet characters. It seemed to make sense to these people, because the Muppets were huge and they wanted to cash in on that fame by having shows that featured either these popular characters OR characters that looked enough like them.
Then Jim Henson decided to clear the air and wrote a public letter to the P of A journal's letters to the editor section. The letter, and I am paraphrasing here, said that although he was flattered by how much people were enjoying the Muppets, that folks should really be developing their own methods and styles of puppetry. By doing this, it would inspire people to come up with designs and characters of their own and create a much more diverse world of puppetry. In polite terms, he was letting folks know that he didn't appreciate all the knock offs and Muppety looking characters, and that folks needed to stop.
Crossing Disney is a HUGE mistake, not just today but at any time. They are a company that you don't want to mess around with, even if you are just John Doe who's creating an unliscenced product out of his basement. Back when I was younger I used to be very involved in model kits and the "garage kit" scene, where it was very popular for people to create unlicensed versions of famous movie and tv characters. Disney was one company that would shut a company down, even if it was one lonely guy, if they got wind that you were selling something of theirs without their permission.
One sculptor I knew created such a model kit, and had lawyers knocking on his door not long afterwards demanding all the profits he made from his creation, along with the molds, all the unsold copies, and the original master sculpt. He gave them all up, but politely told them that he hadn't made any profit off of them because he hadn't sold enough to recoop the exspenses for making the model kit to begin with. He was very lucky he didn't loose his shirt, or his house, over it.
For those folks that think this is unfair by going after the little guy, think of it this way; Disney is trying to make an example of Vault by taking them to court over this as well as protecting the integrity of their property. It doesn't matter who you are, like ravagefraggle mentioned earlier, we live in a country of laws and when you break them and are caught, you have to suffer the punishment. Legitimizing your actions by saying that Disney is some big faceless company so who is Vault really hurting? or that they are giving "hope" and "answered dreams" to people who want a Muppet knock off of their own is childish and ignorant.
Besides, if Jim Henson were alive today (or if you asked his wife and children), do you really think he would be proud of the fact that a few talented puppet builders were making money off of characters that he and his company created without their blessing? It really cheapens the image of the Muppets, and of Jim Henson, if you think so.