Whenever i make a remake, i use copywrited meterial due to the fact that i cant use 3D Modeling Programmes successfuly, im terrable at Graphics and i cant make in game music, as an example take my newest project, im using a Ripped Hud from WipeOut Fusion, Models from WipeOut Pure/Pulse (PSP Versions), Music from origional WipeOut and WipeOut 2097, and Track Textures taken from WipeOut XL, Why, I Programme as a Hobbie, I dont do Graphic, Music or Modeling, I Programme, This is why I rarly post anythink about games i've made unless im stuck because everytime i do post people tend to complaine on here about CopyWrite to me.
I think this is how it is with lots of people who programme as a hobbie i mean you can have an excellently programmed game, but unless you top that with excellent Graphics/Models/Music/Sound Effects, ect then the visual appeal will automatically drop.
Strange how I, a fan of the WipeOut Series wanting to make a "Remake" for non profit, without any intension of removing business from the CopyWrite Holder is still considered to be the one doing the illegal act, As someone posted on these forums recently to me, The fact that my "remake" has "WipeOut" in the the name instantly makes it illegal as the name as general theme of the game are both copywrited.
The way people have always explained this to me is if your game is based on another copywrited game, then its proberley illegal so although you can make the game, you would not be permitted to post it anywhere, although the likleyhood of a company chasing you for this is remote.
This always confuses me as there always seems to be "Retro Compo's" on this forum somewhere, so technically every entry to those compo's unknowingly broke copywrite law.
As for your question about the image copywrited by Nintendo, what you should legally do is Contact Nintendo yourself stating your intension to use a copywritted image, why, and any justtification as to why they should let you, Failing that make your own textures, (Not a choice for me).
Sorry for the rant, but this is a subject which annoise me.
Everyone Be Cool, You, Be Cool.