I was wondering how this website, Sanshee, and others were able to make merchandise based off of the characters and trademarks of other Companies, specifically those of Nintendo. Does the Sanshee team have a deal with Nintendo? Does Nintendo receive part of the profits? Do they simply allow it to go under the radar or did Nintendo give the go ahead, after being informed? Basically, how does this all work?

Short answer: we, like most other companies, speak with companies about licensing in order to produce merchandise for their games.

Truthfully it varies from company to company.