We all call the default skin in Minecraft "Steve", but I've always wondered how did he get that name. I know Notch has never officially called him Steve. In fact, whenever Notch refers to Steve he always puts a question mark after his name. I know in the very early stages of Minecraft there was a Mob named Steve, but was removed when the artist who created him left the company. Anyways, How did the current Steve get his name?
The Meaning of Life, the Universe, and Everything.
Look in your closet
Since the creator of the Mob Steve left the company Notch took him out as a mob but might have put him in as the character in Minecraft. Since Notch wasn't using Steve as a mob he has full right to use him.