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Accounts Studio
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Hi
I would absolutely say that any badges that feature well known designs, or anyone else’s designs, would have very strict copyright and she would definately be in breach of that if she does not have permission from them for her products. Any large organisation, and many smaller ones, would have registered their products for trademark, copyright etc. I very much doubt they would bother prosecuting her unless she had a big organisation and was making a lot of money from it but if their attention was brought to what she was doing then they would certainly send her legal letters. She would probably be able to buy similar badges from the original suppliers as a licensing product. I heard of someone just recently who was selling an accessory for a well known product and she was closed down after being sent legal letters complaining about the fact she was using their name in advertising.
Tell your niece not to worry too much – so long as she takes those products off the market and does her own designs from now on (just not using copyrighted images or characters). Hope that helps.