Earlier, there were some rumors going around about huge anime convention Otakon banning fan art from Artists’ Alley (or as they call it, The Alley). Turns out that, according to the official policy, fan art is fine.
it is generally true that at any time, the rightful owner of any particular property can choose to take action and stop you from using their stuff. That’s not only fair, it’s the law. Otakon is choosing to encourage original art, and yet we remain supportive of fan works, to the extent that we can legally do so.
There’s an entire section entitled “General Guidance for Exhibitors in the Alley” that goes into more detail. Handcrafts are allowed, as are artistic variations on existing characters; buttons and t-shirts featuring character pictures aren’t. Original art is allowed; prints aren’t (unless they’re of your characters). These are sensible guidelines that fit in with the usual understanding of copyright law at conventions.
What I don’t understand is where the rumors came from in the first place.