I just read something about licensed fabric the other day...let me see if I remember how it goes.

I think the law really is that once you buy the fabric, you can make whatever you want with it in most cases. You can ask the company, though to be on the safe side, unless they have it marked as not allowed, you are okay. I mean, it's kind of ludacris for them to think you're going to buy their fabric and not do ANYTHING with it. Copyright laws only go so far.... But there seems to be a LOT of discrepancy in the law!

I think that you can make things for your personal use but you
can't sell them. I remember making stuff using disney licensed
fabric quite a few years ago now and tried selling them in a
craft store but was told by the owners to remove the items
unless I had express permission from the licensee to sell
them. Another time I was also asked to remove items that had
herseys kisses in them for the same reason.

This is an ongoing discussion and problem in the custom boutique world on Ebay.
Some interesting, and informative, reading at this site.

Here is a link that might be useful: copyrights and trademark info