My Two Cents
I spoke with someone in law school (looking to get into entertainment law) and asked what they think of this. What I got was it is OK to seel a "replica" from collector to collector with no rights to the character being tranfered, as long as the buyer is aware that it is not an original and that the buyer understands they do not own a copyright to the item. "Collector to collector" seems to be the key here. So it is OK, legally, but maybe a bit unethical to be doing it here on Muppet Central (or anywhere else).
I could do a painting to look like a Picasso, and sell it as a copy, as long as I state it is not the original, and not made by Picasso. But why would you want it. I feel the same about making other peoples characters as puppets.
Stick to your own stuff puppet builders! It's a craft to be proud of and originality is always rewarded!
I'm not saying anything about who sold these in a good or bad way. I'm just sayin'!
Shouldn't this thread be in the Sale and Trade section anyway?