This is an interesting and sticky argument. The only unlicensed custom I own is a Sean Dabbs Pfeiffer Catwoman head sculpt, bashed on to a Supermad costume, TB League body etc.
Why did I buy the unlicensed sculpt? I wanted the character on my shelf and didn't see a licensed copy being produced at HT scale or quality. Even today, after spending all that custom money, I'd buy a Hot Toys release in a heartbeat. Hell, I'd buy 2, so it's not like this even impacts my consumption of a licensed product. Not in this case anyway.
Michelle Pfeiffer didn't authorize her likeness, the studio/company that owns the rights to Batman Returns didn't authorize the sculpt.
Does it fall under some esoteric 'fair use' or 'public domain' thing? Not sure it does. This isn't 'satire' or 'parody' nor is it fan art for strictly personal use.
Famous actors are the subjects of fan art all the time. You could try to argue that Dabbs is making fan art, yet he sold them for profit which negates that. Practically speaking, this has no discernible effect on the multi-millionaire actor or the rights holders of Batman Returns. But it falls outside the bounds of what's legal, both selling for profit and maybe my purchasing it as well.
It also brings up the ethical question of how much control a celebrity should be granted over their likeness. Does the public own your face just because you're a highly paid actor? No they do not. In practical terms it may be beneath the actor's notice, but technically it's still wrong. Arguably worse if they've never granted rights to their likeness for use in toys, which isn't the case in my example but still ... who owns your likeness?
Now what if a faceless company knocked off his Catwoman sculpt and offered the mass-produced figure for sale?
If it's an inferior copy, I'd argue that it's not cannibalizing his sales because hardcore fans want the best, not an inferior knock-off, and will pay for the privilege.
The kind of fan who will buy the inferior product either will not spend the money, or cannot afford, the real thing, which is scarce anyway because Dabbs does not seem concerned with producing or selling his sculpts in any significant quantity.
His work has still been stolen, but if the reproduction is inferior in every way, does it matter to him?
As an artist who has produced original work (mostly fine jewellery, a little sculpture) and sold it, it would certainly irk me but I wouldn't lose sleep over it if the product was clearly inferior.
But what if I *had no legal right* to produce and profit from a piece of work and had *that* stolen?
It's theft of my hard work, but not a violation of my legal contractual rights. I had no right to profit from it in the first place.
As Wor-Gar says, it's still stealing therefore it's still wrong. But that doesn't make the first thief "right".
I read an article years ago about industrial design, specifically high-end furniture. A designer toured a factory in China producing knock-offs of his work. He didn't have a problem with it, since it drove aspirational tendencies and attention for his own work, and was never going to cannibalize sales of the real thing since that customer base wouldn't lower themselves to buy an inferior copy. In the end it increased the cachet of his work.
Still, theft is theft.
If you go murder a murderer (like Dexter) you have still broken the law and are now a murder-y murderer.
How someone *feels* about a thing is a separate set of issues. In strictly legal terms, it seems to be a case where EVERYONE involved has in fact, broken the law.
I think?
I'm no expert.