The correct answer is C. They are based on preexisting media
Explanation:
We can discard the statements A and E because characters can't have licensed characters.
For example:
Mickey Mouse doesn't have licensed characters, in this case, the animation "Steamboat Willie" is a preexisting media with licensed characters.
We can discard the statements B and D because human quality can't have licensed characters and the legends and folklore are public.
I hope this answer can help you.
We need the picture to answer your question :/
Explanation: