So, is it actually law that if you lose money to make something that infringes copyright, it's not illegal? Or is Captain Osaka's thinking just that no company will bother going after him for copyright infringement if he's losing money while doing it?
Shouldn't he be able to do it under parody or some shit (idk much about copyright law), similar to The Abridged Series?
The Abridged Series are not sold for money. That said, this comic uses original drawings, but with characters obviously built off of an existing property. I think copyright law is pretty fuzzy about this. Most companies would be very hesitant to press charges. If The Captain has a rockin' lawyer, he might be able to justify selling the comic for profit, but he probably doesn't. As long as he doesn't push their buttons, they won't push his.