to be honest, i don't think that the fact it was made only for fun and distributed for free is really an excuse to use someone else's IP. Maybe we might think that because the Smurfs are hugely popular and made a lot of money for a big company that we can kick them in the shins, i know my own character has had a cameo in a couple of other games, that's one thing, but if someone else actually made a Mr Beanbag game or cartoon or TV series without asking me i would be very upset, whatever their reasons were for it. They're not entitled. And we have seen so much of this sort of thing lately, i was just wondering when the first letter from lawyers was going to appear.
But really, these lawyers - they haven't "sued" yet as far as i can tell, there isn't any legal action (because then you'd get a letter from a court) just a cease and desist including a demand for money... i don't think they are following the proper procedure for such things and i don't think it is reasonable for them to demand such a large sum first, before allowing a reply to the accusations. Two wrongs don't make a right, really.