I deliver on the legal status:
My Question:
Also I have a question for you about selling people's faces. If someone uploads a video or livestreams them playing a game or doing something else where it includes their face (like a webcam view) could I say take the photo and sell it? Or would it under their copyright because they uploaded it? Alternately could I take their face and make a painting or something of it?
Response:
Your question is interesting. The simple answer is yes, if they took the video, they have the copyright, and you are infringning if you take the photo and sell it. Even making a painting based on a frame of the video could be copyright infringement, because you created a derivative work. However, you could look at the video and then create a painting based on your interpretation of what you saw -- as long as you add some creative content and aren't just copying, it's okay.
So basically the example in this thread of Yuki on a shirt would (probably) be illegal as that is directly lifted from a video but the T-Shirt is fine.
Please don't make this start a trend of TF2 player shirts, it is creepy.