Wasn't there also a license dispute of some sort which led to the merchandising rights becoming too complicated? I seem to recall reading that, but I can't source it right now.
That we do not have an action figure of the villain is ridiculous.
There were no action figures sold during the release of ST II either.
I'm sure there'll be a "Sherlock" articulated action figure eventually and I can headswap him.
But there is
already a blackshirted Kre-o figure of Harrison. He's called the "Federation Special Ops" figure.