Have been thinking about the whole copyrighted images thing and was wondering if you used the Licenced Cricut Cartridges in the cricut cake to make images to put on a cake then you effectively had the permission of the people that own the rights to that character. eg Toy story/disney princess/fairies/hello kitty

Just a thought as a way around using these character images without fear of being sued!

You are right and wrong. You are getting permission to use the cartridges for your PERSONAL use but NOT as a business use. For example, you could make a Toy Story cake for your child but as soon as you make that same cake for a customer you are in violation of the terms you agreed to by buying the cartridge.