I think that the problem is with the Queen's "Tudor" crown. If I remember correctly, the England cricket team got into trouble when they started to market replica shirts a few years ago and so the current England badge has a baronettes' crown over the lions and not the original tudor crown.
You are also not allowed to use the format of the RAF/Squadron badge without authority so you cannot produce a non-official badge in the same format. Many years ago I wanted to produce a sweatshirt (USA College style) with an E-3D flying out of the RAF badge instead of the Eagle/(Albertross?) with the logo "PER AWACS AD ASTRA". Strangley enough it was not allowed!
