Pretty much.
If your working for current units your likely to fall under the scrutiny of MOD inspection and/or the ire of the current manufacturers because your undercutting their own work.
Badge fakers are mostly under the radar or too far away to be of any concern because their dealing with things no longer currently required.
The other side is that crown copyright is 125 years (which is held by the MOD/Crown), while the badges themselves (the work of creating them by the manufacturer) are under design right (a different set of IP laws) which is about 20 years with the design copyright IP being licensed and thus not owned by them.
The legal costs of pursuing IP infringement are usually much higher than the redress you might get back and is often only examined where it could have an impact of current reputation. ie modern marking using the IP to give the appearance of some sort of official sanction
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