Everyday I see dozens of cakes using Disney characters and I am sure they did not pay for the privilege of using them. However, they are undeniably in violation of copyright laws and libel to charges, if Disney so chooses. I’ve done a few images which were subject to copyright laws, but they were donated Icing Smiles cakes and I made no profit. In the US, you cannot sell the images, but you can make them for family and friends, if you do not make a profit.
Sugar Sugar by SSmiley