Let me elaborate further for a better understanding and to clarify my standpoint:

Hey y'all, I want to clearly state my stance on using copyrighted characters for any future projects. I feel uncomfortable using copyrighted characters for a few reasons, and I'd like to explain why. First and foremost, I'm concerned about potential DMCA takedowns. It's disheartening to see people put hard work into creating something entertaining, only to have it taken down due to copyright issues. While some fan games featuring company characters have gained popularity, others have faced takedowns despite being created for free and in good faith. It's also troubling to see individuals being forced to sign contracts prohibiting the use or discussion of company characters. This has been observed in various settings such as YouTube and daycares. The power that companies have to enforce these restrictions is concerning and makes me fearful that something I've created could be shut down at any moment.

Is there an alternative in this case?

I think it's important to remember that as time passes, more character creations become part of the public domain. For example, Steamboat Willie entered the public domain this year. Since its company can't do anything about that, it makes me feel more comfortable using those characters. However, I've also been considering the idea of redesigning characters that were based on copyrighted characters. I believe it's a good idea from both a creative standpoint and for profit. Will I be doing this? Most likely, yes. I've seen YouTubers and developers do this and it inspires me to do the same!

What should we do about the elephant in the room?

Easy, Scott Cawthon has always been peaceful and generous when it comes to allowing other people to create fan games from the start. He even created a program called The Fazbear Fanverse! Seeing this not only makes me feel more comfortable and confident in making projects based on his work, but it also makes me hopeful that I could be part of such a program. Am I being delusional? Maybe, but it never hurts to put in your best effort as long as you believe in it.

-YoSoyMalakai