Glancing through the responses makes for interesting reading. But then BOLS is good at that.

One idea not presented (or I missed) is a parallel with the intellectual property issues associated with filk songs. For those who may not be familiar with the term, I recommend the wikipedia article as a starting point.

Using filks as an analogy, 3d can be a direct 'cover' of an existing song, say the model presented at the start of the thread or a tribute band, a new expression (new melody/new render) of an existing unit/model (this would be the traditional scratchbuild),a parody (wierd Al, I'm not sure this applys here); or a completely new set of lyrics/new model not otherwise represented in the GW product set (the CH example). All of these, exist in the IP universe created by GW.

GW wants only their models, or those by their licensees (if any?) to be sold for use in their game rules. OK, that's their business. But, then we get back to the original question: Scratchbuilds, or Not? Using the filk analogy, and please remember analogies are never exact, the answer is Both, depending on the creator.

My profit factor, anyway.