As per another thread recently, fanworks and violation of copyrights and trademarks are NOT allowed.
I know where your confusion comes from but it's not an offical stance anymore...
As per the TOS,
"You hereby affirm, represent, and warrant that you (1) own or have the necessary licenses, rights, consents, and permissions to publish Content you submit and publish through the Service; and (2) all such Content are original works of authorship on your part and have not been copied, in whole or in part, from any other work and do not violate, misappropriate or infringe any copyright, trademark or other proprietary right of any other person or entity."