I received a notification from a lawyer representing Wizards of the Coast Friday. Here are some highlights

Re: Infringement of Wizards of the Coast, Inc.'s MAGIC THE GATHERING® Copyrights and Trademarks

We are counsel for Wizards of the Coast, Inc. (“Wizards”), the owner of the copyrights and trademarks for the MAGIC: THE GATHERING® trading card game. We recently became aware that Mr. Dupuis is making, displaying, distributing and selling “ELD Proxies,” http://www.themanadrain.com/index.php?topic=36536.0, which are nothing more than derivative copies of genuine MAGIC: THE GATHERING® trading cards.
Mr. Dupuis’ unauthorized copying of the MAGIC: THE GATHERING® trading cards constitutes copyright infringement in violation of 17 U.S.C. § 501. His unauthorized use of the MAGIC: THE GATHERING® Mana and Tap symbols and other MAGIC: THE GATHERING® trademarks, including the overall look and feel of the trading cards, violates the federal trademark laws, including 15 U.S.C. §§ 1114(1) and 1125(a), by creating a likelihood of confusion with respect to Wizards’ authorization or sponsorship of or association with Mr. Dupuis’ cards and tournament. This unauthorized use is also likely to dilute the distinctive qualities of Wizards’ MAGIC: THE GATHERING® marks in violation of 15 U.S.C. § 1125(c) and the anti-dilution laws of numerous states.
On behalf of Wizards, we therefore demand that Mr. Dupuis immediately cease and desist from any further manufacture, display, distribution or sale of these “ELD Proxies,” destroy any existing ELD Proxies, remove them from themanadrain.com website and from wherever else they may appear, and assure us that Mr. Dupuis and themanadrain.com will make no future unauthorized use of Wizards’ intellectual property.
I have since spoken with their lawyer, and we're working to determine exactly what Wizard's policy is in regards to proxy use and altering cards. It is of note that the lawyer said the only reason they even heard about these proxies was due to someone contacting them about it. I'd be interested if the person who contacted them wanted to express their motivation. It is my hope, with the understanding of the time that goes into them as well as the extremely limited quantity, that Wizards will allow me to continue making proxies to give away to the community. I'll keep the community posted as I get more info.