Modding Starter Content?

Are we allowed to mod starter content, like the demo man? Can we take him in blender and or use him as a base for other characters? If I make a custom skin and mesh for the demo man, can I give it away to other people for free to use with unreal?

You are free to use and mod the assets for any Unreal Engine 4 project. I’m not sure if you are allowed to redistribute the files, even for free, but you should be fine making custom textures and distributing those for people to put on it.

My problem is that I used the demo man and rebaked him and changed his UV’s. I can’t just give the material away by it’s self, I have to include the mesh. How can I give this away to other unreal users?