I have a question, some bakeries / decorators use the 'toy' and some use gumpaste / fondant to make licensed characters on cakes. From my understanding, it is illegal to make a licensed character for a cake, even if you are licensed. But , what is the real answer. Because i don't want to get in trouble by making a mickey mouse and be sued by disney or a cars theme, etc. I see some doing it, but i am a little worried. Whats the info on this. I have seen a very big bakery actually say , it is illegal, and they will not make it they only use the toy. thanks in advance

You can not make licensed characters for a cake you are going to sell. It's better to either place figurines that you have purchased or have the client do it and add it to the cake after.

It's a copyright issue. If you make your child a Mickey Mouse cake for their birthday, that's legal, but you can't sell the same cake for a profit. If the client wants to check into getting a copy right release ( in writing) so that you can do the cake, then you can do it. Some characters will charge a nominal fee to use their image/likeness, others are much more stringent about it.