The story of the Marham web site badges was more to do with how they were hosted on the Station Internet page as the guy who did them was the station graphics officer who could produce them (If what I was told was true, they lived on a external server and not an MoD one). They did remain on the Intranet for a while though the move to a common web format across the whole RAF most likely killed the whole thing. I doubt AHB were the prime drivers, more likely to have been MoD IRP at Abbey Wood (There was also the fact that the main RAF Internet site was being managed and produced by an external contractor at the time (Deltaweb) so it most likely breached the contract as they were doing badges and aircraft drawings for the historical squadron pages that were on the main site at the time).
Somebody did copy a lot of them
off the Intranet (however 111 Sqn wasn't one of them) though like the STC / Air Command produced ones, some of them have major errors compared to the originals signed by the monarch or on the Sqn Standard. The other thing (and I have this on authority from a station photo section at my last unit and a member of the public who was driving the production of a memorial plinth at a former station that I was based at) is that the IRP people are very big on using an official copy of the badge as used on the main RAF website for any licensed use. In the case of the memorial they didn't charge the going rate for reproduction fees, but did insist that graphics supplied by them were used (which cost the guy around a tenner).
The RAF website shows the 111 Sqn badge using roman numerals, so that is the correct format.
http://www.raf.mod.uk/organisation/111squadron.cfm