To answer the question someone asked, "Who'd buy a recast?" Anyone who is new to the prop replica scene would. When I went to MegaCon 2009, I came across Arsenal Models' booth. I was impressed and almost came close to buying something from them, and even included them in my "Day at MegaCon" video. It was until after I signed up here at the RPF and began to get more interested in propmaking did I realize the truth about Arsenal Models. Everyone here knows the truth about Arsenal Models and have more experience on constructing props. If I hadn't found out about the RPF, I probably would have bought from Arsenal Models and not known the truth about them. Not to mention, most newbies don't know anything about how to make props from scratch, and would end up buying a recast because they don't know how to make a replica from scratch. Basically, newbies who don't know any better would be a shorter response. And trust me, there are a lot of people who are fans of TV shows and movies who would buy a recast and not think twice about it.
But when it comes to replica props in general, we're already violating copyright laws. Unlike most recasters who are like Arsenal Models and those who sell on eBay, we make replicas out of love of a film/tv show/comic book/book/video game/etc, not for the profit. The profit portion is where things get screwed up. Yes, I understand when you some of you sell a kit or a cast, you're trying to make up for the cost of the materials you used to make it, but if that's the case, then why sell multiple pulls at $150+ dollars when you only spent about $50 worth (or less) on the items to make the positives and negatives for the mold, sculpt, etc, then it makes no sense when you produce a certain number of pulls that covers the costs and then some. But even with that, you are still using something created by someone else.
Does that make recasting right? No. Basically you took the time to construct something by yourself and made a cast. Unlike a recent incident, which I'm sure you guys know what I mean, if you make the mold yourself and you make the cast, then it makes recasting wrong. You spent your time and money to make the mold and casts. When it comes to the recent incident that was discussed with a Ghostbusters proton pack, it's a little bit more difficult to say where the line of right and wrong gets drawn.
In my opinion, if the people who made the original items at those companys are here and they're not okay with it, it's no different than a recaster who buys a kit from a user here (someone who scratch built the item and created the original mold, etc) and makes a recast of it. If you take the time to ask those artists if they're okay with it (even if they do or do not have the rights to the item in question), the worse they can say is no or "though we don't recommend it, we can't say you can't." Asking those artists is an actual sign of respect. If one of them expresses their concern that its not okay to copy their work, then don't do it.
Seriously, as much as I wish that we can do more of the Lovecraft share-all like Lovecraft had wanted with his story mythos, sometimes it takes one bad apple to spoil the whole bunch for the community who does something out of the love of it. I'm only for recast if it is meant to preserve history (i.e. making a copy of a piece to be stored somewhere as a record of it, or making kits of something to help keep the items used to create a prop, which may now be more rare or non-existent in these days. As much as many want authentic Graflex light sabers, the original Graflex flash-bulb tube could very well be rare and on the verge of extinction) or to provide a piece or two to someone else's scratch build (I've got an Airsoft FN-57, and though I have considered scratch building the launcher for it, I have checked to see if there was already a pre-existing kit just for the launcher itself). Do I agree with what Arsenal Model does? No, because they copied a cast made by someone else, who took the time to make their mold and cast from scratch. Do I agree with something like the incident with the Ghostbuster's proton pack? I'm still on the fence on that one, but that particular incident did bring up an interesting question.
In relation to the question about: Does recasting an out of business company right or wrong? It really depends on the artist, if the item is still being produced (such as by the company or another company) and how long ago it was produced. As we see, one user here has already expressed that he doesn't like the idea of someone reproducing his work that he did when he was under contract with the company. So, I say we respect his wishes and any such recast would be wrong.
Using this as an example (NOTE: I am not sure if this is actually true, but I felt this is an example to help cover my point on this one), let's say Zack Finfrock of Wayside Productions asked Skruffy if it was okay to make a mold of Skruffy's Pipboy so that he could make a flexible and easier to wear copy of the Pipboy for his Nuka Break webseries (which Zack has done). If Skruffy said yes, then Zack proceeded with making the flexible Pipboy with the promise to only making the one(s) needed just for the production and no intention reproduce and selling to other people. That I can agree with as Zack asks Skruffy permission to copy his work and promised not to make others to sell (and though Skruffy doesn't own the rights to make the Pipboy kits, if Zack asked to use his kit for the basis of the flexible Pipboy for the production, then Skruffy does have the right to say if its okay for Zack to copy his cast, which Skruffy had made the original scratch build, the mold and the cast).
But, lets say I'm doing a recast of an arm for a Skeletor action figure from the 1980s Masters of the Universe line for my old Skeletor figure (which is missing an arm), then I feel its okay because I'm trying to restore a historical item and I'm doing one piece for myself. Granted, Hasbro has recently produce the MotU line again, the newer figures parts aren't compatible with the older figures bodies because they've done entirely new sculpts. But if I contacted Hasbro to ask permission to do a small run of that part from the old figure for others looking to replace parts of their figures that are missing and they said, "Don't", then I probably wouldn't.
Of course, this is just my opinion and interpretation with the information I have to work with. I could very well be wrong in my opinion and interpretation.