Can You Legally Sell This? COPYRIGHT Mistakes Etsy Sellers Make
If you open Etsy and type in "Disney crochet patterns" or "Marvel mug," hundreds or even thousands of listings will show up.
Naturally, you might think, "Well... if all these people are selling it, it must be legal, right?"
But not exactly.
One of the fastest ways Etsy sellers lose listings, get hit with takedowns, or even lose entire shops isn't pricing mistakes or SEO. It's intellectual property mistakes. We'll be discussing some of the biggest copyright and trademark mistakes that Etsy sellers and handmade businesses commonly make.
Before we get into this, a disclaimer:
Hi, I'm Sterling, the artist behind Cactus Lady Creation. I'm not a legal expert. I'm simply an artist and fellow small business owner sharing from my own research and experience. This article is for informational and entertainment purposes and should not be considered legal advice.
Section 1: Everyone Else is Selling It
The first mistake is assuming that just because a lot of shops are selling products that may violate copyright, that automatically means it's okay.
People might think:
"I see 5,000 Disney shirts, so Etsy must have checked them."
But Etsy doesn't work like that.
Etsy is a marketplace, so they don't review every listing before it goes live. Instead, intellectual property enforcement often works like this: a company, creator, or rights holder notices a listing and files a report. Etsy can then remove the listing after receiving that complaint.
So a listing existing on Etsy doesn't automatically mean it's allowed. It may simply mean it hasn't been reported. You could see shops selling copyrighted characters for years, while another shop might receive a takedown notice after a week.This can be confusing because enforcement isn't always immediate or consistent.
Section 2: Copyright vs. Trademark Confusion
Another mistake people make is confusing copyright with trademark.
This is where things start getting confusing because people use the word copyright to mean basically everything. You might hear that a specific shop "got hit with copyright" or ask, "Is this copyrighted?"
But there are different types of intellectual property protection, and two of the biggest issues Etsy sellers and handmade businesses run into are copyright and trademark.
So let's discuss the difference. Copyright protects creative works such as artwork, books, movies, music, photographs, illustrations, characters, and the creative expression itself. Trademark protects things that identify a brand or source, including business names, logos, slogans, brand phrases, and specific identifying elements.
This is where it can become confusing. Let's say a seller creates a shirt that says "Just Do It." Maybe they designed the graphics themselves, used their own fonts, and created everything from scratch. So what's the issue?
The phrase itself is trademarked by Nike. "Just Do It" is a registered slogan protected across multiple categories including athletic apparel, footwear, and sporting goods. This is common with print-on-demand shops as well. People search trendy phrases, memes, song references, movie references, or viral sayings, then create products around them without checking whether those terms are protected.
It's important to search the words or phrases you want to use within the trademark database for your country. Copyright protects creative work, while trademark protects brand identity.
Section 3: Fan Art Doesn't Automatically Mean You Can Sell It
Now let's talk about a really messy area in the copyright conversation: fan art.
You might think as an artist:
"Well, I drew this myself... so what's the problem?"
Let's say you create an illustration of a famous cartoon character. You didn't trace it or copy and paste it from an image online. You sat down and drew the entire character yourself and spent hours on it.
Naturally, you might think:
"Well, I made this myself."
Technically, you did create that specific drawing. But the character itself may still be someone else's intellectual property unless it is in the public domain. For example, if I hand-painted a completely original Mickey Mouse painting, I created the painting itself, but I didn't create Mickey Mouse. The same idea can apply to handmade products such as crochet dolls, shirts, stickers, digital art, tumblers, and print-on-demand designs.
Where things become confusing is that enforcement isn't always consistent. Some companies are extremely protective of their intellectual property, while others tolerate certain fan creations. Others may ignore fan art for years.
So you might look around Etsy and think:
"Well, I see hundreds of shops doing it."
The problem is that you're often seeing what survived, not the listings that were removed last week or the shops that received takedown notices.
Section 4: Fair Use Is Smaller Than People Think
Now let's talk about a phrase that gets used constantly online: fair use.
According to the U.S. Copyright Office, fair use is a legal doctrine that promotes freedom of expression by permitting the unlicensed use of copyright-protected works in certain circumstances.
Section 107 of the Copyright Act provides the framework for determining fair use and identifies certain types of uses such as criticism, commentary, news reporting, teaching, scholarship, and research.
You've probably heard people say something is fair use because:
- They only used a small amount
- They credited the original creator
- They changed part of it
- They made it themselves
There are also myths online like:
"Change it by 30%"
"Change three things and you're safe"
"As long as you credit the creator, you're fine"
The problem is that these aren't actual rules.
Fair use looks at multiple factors, including why the material was used, how much was used, whether the use changes the purpose, and whether the use affects the market for the original work. So, fair use is more complicated and often narrower than many people assume.
Section 5: Public Domain Doesn't Mean Everything Old Is Free
After hearing all of this, you might think:
"Great... I'll just use public domain material."
Public domain can actually be an incredible resource for creators. There are old illustrations, vintage artwork, books, sheet music, and historical materials that people can legally use because copyright protection has expired.
But people often make another mistake.
They assume everything old is automatically in the public domain.
Not necessarily.
Just because something is old doesn't automatically mean it is public domain.
Copyright protection depends on several factors. Generally speaking, for works created after January 1, 1978, copyright protection lasts for the author's life plus an additional 70 years.
For anonymous works, pseudonymous works, or works made for hire, copyright may last 95 years from publication or 120 years from creation, whichever expires first. There can also be situations where one part of something enters the public domain while another part does not. For example, the original 1928 version of Mickey Mouse has entered the public domain, while later versions of the character remain protected. The good news is that you can verify whether materials are in the public domain by checking the source, date, and exactly which version is public domain.
Section 6: How to Protect Yourself Before You Create
After all of this, you might feel nervous about creating anything at all, but that isn't the point.
The goal isn't to make every creative idea feel like a legal landmine. The goal is to help you build something that actually belongs to you.
A lot of people accidentally build businesses around borrowed ideas: trending characters, popular catchphrases, movie references, and viral moments.
But long term, building around your own ideas creates something you actually own.
Before spending hours making products, creating mockups, and building listings, take time to do your research.
1. Search phrases before using them
If you're using a slogan, phrase, or product name, check whether it's trademarked.
2. Read commercial licenses
Read licenses carefully and make sure fonts, graphics, SVG files, or digital assets actually include permission for commercial use.
3. Keep records
Save receipts and licenses so you know exactly where your assets came from.
4. Build recognizable original work
Your own style is one of your biggest advantages. People who stand out long term aren't memorable because they copied trends. They're memorable because people recognize their work. Your ideas and the way you solve people's problems are often what customers return for.
Sources
Etsy. Intellectual Property Policy. Etsy, Inc. Accessed May 20, 2026.
Etsy Intellectual Property Policy
United States Patent and Trademark Office (USPTO). Trademark Basics. Accessed May 20, 2026.
USPTO Trademark Basics
United States Patent and Trademark Office (USPTO). Trademark Search Database (TESS). Accessed May 20, 2026.
USPTO Trademark Search Database
United States Copyright Office. Frequently Asked Questions (FAQs). Accessed May 20, 2026.
U.S. Copyright Office FAQ
United States Copyright Office. Fair Use Index. Accessed May 20, 2026.
U.S. Copyright Office Fair Use Index
United States Copyright Office. Duration of Copyright. Accessed May 20, 2026.
U.S. Copyright Office Duration of Copyright
United States Copyright Office. Copyright Law of the United States, Section 107: Limitations on Exclusive Rights: Fair Use. Accessed May 20, 2026.
Section 107 Fair Use