[brianshumate]

Yes, they most certainly do during review, at least for recognizable branding, etc. The only app I've had rejected was rejected for potential copyright issues.

The rights to the content in the app belonged to the organization I worked for, and the app was being submitted under that organization's iOS Developer account, but the organization still had to prove it had the right to use its own content with a letter from its licensing people to Apple.

[darylteo]

This is interesting... how long ago was this?

If you look at the app posted by OP, you'll find that it is a blatant copyright infringement (its god damned PIKACHU for crying out loud). This was posted in April 2010.

Perhaps you were unlucky, or they have updated their review process.