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The funny thing is because they created the original designs, the sprites themselves, and the shiny pallets they could literally just take the existing shiny sprites fans have made and just use them for zero work. Nobody would have the money to try to fight the "they stole my fanart" legal battle and because of how little work went into the "fanart" vs how much of the original work was used in it they'd have a hard time defending themselves against TPC/Game Freak/Nintendo's legal team if they were bold enough to try. It'd be a dick move, but it'd be about par for the course given how strictly they protect their IP and it'd actually have some benefit to the games even if it was very small.
