I am making a visual novel that borrows all it's assets...

[SuperbowserX]

Thanks for the advice. If I *really* wanted to distribute to the masses (I don't plan to since this is just being made for fun and for me to look back on in the future), I'll follow that advice. Alternatively I'll find a character face icon maker.

Anyway, I just wanted to ask: are companies allowed to skip a C&D letter and go straight to suing you? Or do they have to give you a C&D before they can do anything worse?

[trooper6]

Anyway, I just wanted to ask: are companies allowed to skip a C&D letter and go straight to suing you? Or do they have to give you a C&D before they can do anything worse?

They can certainly go straight to suing you if they want to. Of give you a C&D while they are preparing to sue you.

[Imperf3kt]

Forgot to mention this earlier, but generally speaking, you'll get a C&D most of the time, unless you're a prime target - that is, they know if they sue you, you can actually pay them. For example, another company or a well known and well-paid professional.

If you're a nobody from the internet, it's too costly to randomly sue without even knowing if you can pay your dues.
Of course, if they do issue a C&D, and you don't comply, you are still likely to find a summons to a court hearing turn up in your mailbox eventually.

Don't take that to mean every company operates like that, but most that I've heard of, do.

[Mammon]

If you're a nobody from the internet, it's too costly to randomly sue without even knowing if you can pay your dues.
Of course, if they do issue a C&D, and you don't comply, you are still likely to find a summons to a court hearing turn up in your mailbox eventually.

Jup, just like anything else business related, copyright enfringement isn't a charity. Assuming the company even sees your work, them actually sueing you is unlikely considering what you said in the OP about being non-profit. Them contacting their lawyers and drawing up an official document to take this to court is probably already more expensive than what you're worth. We aren't even talking about the actual lawsuit yet, just the basics to start it. The actual court session or settlement discussions, even when disregarding any international issues, will probably cost them more than what you make in a year.
So considering that there's still a fair chance of them losing the case or you resolving it by declaring bankrupsy (thus cancelling any debts you have including their claim), any proper bussiness man wouldn't actually sue. Even if they're viciously procecuting any and all fanfics and such, they'll send a letter to withdraw it or contact the media you're using to spread your work which doesn't cost them a lot. Even if they do intend to take this to court, they'll send a C&D first to strengthen their case.

I'm not saying that this is reason to ignore copyright, and those less expensive actions of theirs are still serious, but you shouldn't be scared to do anything that might be copyright territory because people will be throwing massive monetary claims at you.

[SuperbowserX]

Really? You're saying I shouldn't be scared to share around my game privately, just understand the risks and be cautious?

[Mammon]

Really? You're saying I shouldn't be scared to share around my game privately, just understand the risks and be cautious?

No I'm not, for legal reasons . However, take a look at all the fanfics out there that don't get sued. If you're not going commercial or reaching a large audience, there shouldn't be a big risk. And actual monetary implications will be very rare unless you are an actual professional/well-established developer as stated before.
However, an original game would always be better and safer than a copyright enfringing one.