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The main problem however is that large companies like Marvel/DC/Disney don't bother going after small vendors. Probably not worth their time. But if you're a legit schmoe trying to sell your artwork, say putting your own robot design on a night light, you are losing sales to the guy selling R2-D2 night lights. Sure, many customers may only have bought the R2-D2 but there may have been a significant number to have bought yours if Etsy bothered to police this situation a little better. It's not like they are unaware. But they ignore the situation as long as they can get away with it since they'll make more overall sales that way. And Etsy has been called out by their vendors for other dishonest practices but I've already gone way off topic here. In any case, as a vendor you're left with the choice to try to compete with dishonest vendors, risk doing it yourself, or staying out of it altogether...by trying something else, like making a video game ;)

Yes, I think the topic is worth of its own thread.

Like in most cases its a cost/benefit problem. Is it worth to fight it? In a lot of cases no. But that is something most Indie developers will never have. Not everbody can be Vlambeer :D