Originally posted by CaptCrouton
I think not being able to make one for yourself is an outlandish law, but I doubt it's ever enforced. I think that law should just be removed from the books.
It's not a specific law - copyright law doesn't make any distinction between "fan" use and "commercial" use. Essentially, if something is copyrighted or trademarked you can't duplicate or reproduce it in any manner for any reason without the consent of the trademark owner, period.
Disney has successfully sued Day Care centers for putting Mickey Mouse murals on their walls. Believe it or not, they don't do it to mean or malicious but because they HAVE to. If you own a copyright or trademark and don't go after someone infringing on it, you can actually loose ownership of the copyright.
For example, say Sesame Workshop turns a blind eye to puppet builder "A" selling high-quality Muppets on ebay like the Count puppet. They figure, it's just one guy doing something their fans want so who cares? About a year later someone else (we'll call him puppet builder "B") starts making tons of Count puppets and selling them through ebay. He's making thousands of dollars so SW sues him.
When it gets to court, puppet builder "B"'s lawyer tells the court about puppet builder "A" and how SW let it slide. If it's OK for one person to do it, why is it not OK for another person? SW loses and now the door is now open for anyone and their puppet-building brother to build and sell Count puppets.
Then someone else decides to start making and selling Count T-shirts. When SW sues them, the T-shirt maker cites the earlier court decision against SW about the Count and SW loses again!
Now with the loss of merchandising revenue, Sesame Workshop has less cash to pay for Sesame Street. This gets repeated often enough and they lose control over merchandising and the revenue they were earning through it. Suddenly they can't produce Sesame Street anymore (the merchandise pays for a big chunk of the show's budget).
Sound farfetched? Things like this have actually happened before. The brand "Nike" was actually a small shoemaker in Europe. After 20 years they sued the Nike corp for infringing on his trademark but lost the case because the court ruled they had failed to defend their trademark.
I'll admit the Count scenario I described is a little unlikely, but it still could happen and that why's companies like the JHC have to go after everybody.