The basic answer is that if you're going to work with any kind of existing IP that belongs to someone with deep pockets, or render Emma Watson with bigger tits in a thinly veiled Hogwarts environment, or keep trying to release games starring someone who is very obviously Angelina Jolie, the fact that you might technically be operating within a given country's laws is irrelevant if the entities you're exploiting have so much money that they can ruin you in a legal fight. They probably won't escalate to that point unless they have to, because that costs them money as well, but they can. So if you're going to do it anyway, understand that you might not get to finish, you might not be able to make any money, and they might make your life really miserable for a very long while.
I wish Leaf on Fire had continued, but in general I wouldn't attempt it or anything like it. The lack of assured monetary reward and the danger of legal threats doesn't surpass the risk. On the other hand, the Emma Watson with bigger tits thing seems to be doing well, so what do I know? Maybe Emma secretly enjoys the game and called off her lawyers.