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Per the sticked note, I am trying to be as civil as possible.
So because someone is being a jerk (presumably to you), you want to get them thrown into jail for completely contrived reasons:
1. ♥♥♥♥ you and take your petty nonsense back to Berkely.
2. Using game artwork for a non-profit profile picture that does not claim to represent Toby is not illegal in any conceivable way.
How about when the imagery is used in the context of harassment or abuse? Doesn't this go against fair use too?
No one has ever sued over steam profile pictures...so this is pretty much the closest parallel.
https://en.wikipedia.org/wiki/Kelly_v._Arriba_Soft_Corp.
As for how I would defend this instance under the four points of fair use:
1. The usage of a sprite as a profile picture is non-profit. He is not displaying an image that Toby charges money for, so he is not depriving Toby of sales. He is not profiting off the display of the picture either. It would be a different matter if, say, he was using it as the logo for his company or claiming to be a representative of Toby.
2. Undertale is a published work, and using a profile picture taken from its original game context is significantly transformative. Moreover you didn't entirely clarify if the profile picture is ripped straight from Undertale or just fan art based on Undertale. If the latter then he's pretty much completely in the clear because ideas are not inherently protected by copyright.
3. Using a fraction of a game screenshot is not copying the entirety of Undertale. Maybe you could argue the entirety of the sprite is being used, that's a stretch.
4. You would have a hard time demonstrating that some random guy being a jerk to a few people on a forum has had any significant impact on Undertale's overall market value, especially in comparison to how thousands of other people use the profile picture innoccuously and actually benefit Undertale by bringing more positive attention to it. That burden would actually fall to Toby himself, who has neither the desire nor the means to quantify and demonstrate it. Bigger companies have tried to demonstrate this over infinitely bigger things than some random forum user and still failed to do so.
You would have to rebuke 2 of these 4 points to even have somewhat of a case.
I am not inquiring about a user who uses Toby's content in an innocuous manner, something that Toby himself even endorses, because as you say positive uses help promote his brand. I am talking about a user who is posting abusive content on YouTube, with this content being at the "heading" of the posts.
It is possible he might be violating YouTube TOS as in his uploads he sounds like a young child. YouTube cannot legally have members under 13 due to COPPA.
I would once again like to request that Toby (who I have already sent a Friend request to prior to posting) remove this thread, and allow me to privately share the URLs in question.
Really if you're wanting the person off of Youtube, you're better off trying to talk to Google, or whoever is in charge of Youtube, for the underage claim. Though, I expect nothing to come of it.
Toby's account fwugradiation is in fact still active on the Steam service; it was logged in in the past week according to his account page.
As for the legal question, I just chummed for sharks at Avvo (completely generic question).