Are you protected by Parody law for commercial use? (for example South Park makes money off their products even with blatant likeness and other negative advertisement. Another example of what I'm talking about is Broforce, it is clearly using many well known movie/tv characters in their game.
Is it considered fair use under copyright and parody regulations? Can you use something's likeness as long as it is being parodied?
Edit: I also heard that using a real gun's likeness was under copyright.
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Generally, big IP holders know they can shut you down with a threat because fair use or not, going to court could cost you tens of thousands of dollars.
It's easy enough to change the names and designs a bit so it isn't infringing. Xenonauts is a non-infringing game that plays like the original X-Com.
http://en.wikipedia.org/wiki/Fair_use#Fair_use_and_parody
I suppose in the worst case scenario remaking some of the original characters from scratch could be a plausible solution. Thanks for the Xenonauts example, I'll check it out.
Here's something to consider from that letter: " Therefore, you are hereby ordered to remove all your Alien Quake files from your computer storage. You must also remove all references to Alien Quake from any WWW pages or internet sites you keep or maintain. All distribution of Alien Quake is illegal and you should know that the Alien Quake team are under obligation to report the name and URL of any distributor to 20th Century Fox."
that means everything gets shredded, no portfolio pieces and you are basically have to police other people from sharing it because Fox or whoever will hold you personally responsible for some stranger uploading a torrent.
I was thinking that maybe if we just replace the ripped assets we could theoretically be safe but it looks like things are going to be more complicated than that. I'll definitely have to speak to a lawyer about this. Thanks for the information guys.
I still have one like that from around then, about my Al()ens Total Conversion for Total Annihilation...
A little research basically showed it was because they were about to release AvP II and wanted to corner the market.
Even more interestingly, I have an email from H.R. Giger's agent supporting my project and mentioning the legal ownership of the Alien design is a bit murkier than Fox would like everyone to think.