You are allowed to
- Recolor the sprites with a new color palate (Ex, apllying a gameboy pallate)
- Take parts of sprites and move them/attach them to others
- Split apart sprites
- Use Solid color backgrounds
- Use the assets as textures in a 3d game
You are not allowed to
- Make your own sprites (Obviously)
- Change colors to change a sprite dramatically (Ex- adding a mustache to a sprite)