I don't know enough about the process to be of much credible help, but here are my two cents on the topic.
Most of the copies I've seen are somehow altered, usually smaller or bigger than the licensed figure (the original Schleich dog or whatever). They are usually a different color scheme too (though I've seen obvious impersonators, the Schleich Aussie adult for instance). I'd imagine that legal or illegal possession depends on each case (i.e. AAA has produced figures for multiple brands, as have Maia and Borges etc.)
I don't buy them as a general rule, ones on ebay are tempting (there are so many bootleg wolves that actually appear better painted than the original model) but since they charge so much obviously someone profits off them... where as I've seen many Papo, Safari, and Schleich knockoffs at the dollar store and have only ever bought one, not a knock off, but a comically ugly arctic wolf no one would bootleg. So I don't feel that is such a big deal but I suppose dollars add up. Generally speaking, its better to buy the model from the original maker to support business with them and the artist who sculpted it, rather than someone selling a bootleg copy of it...
Hopefully someone has more info and advice for us.
(Poor quality photo, its older) I actually have grown to love this awful figure. I still have it.
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-"I loathe people who keep dogs. They are cowards who haven’t got the guts to bite people themselves."-August Strindberg (However, anyone who knows me knows I love dogs
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-“We can try to kill all that is native, string it up by its hind legs for all to see, but spirit howls and wildness endures.”-Anonymous