Thank you all for your help. This is why I love this board and have learned so much.
The pen that I used was a pigma micron 08 and the canvas material was 100% cotton. I honestly think that this is my fault because I put it on quite heavily since the material was not completely flat. It has all those crevices that you see in a canvas bag handle. I think this is why it smeared as it was not completely dry and the material was not prewashed. I have tried using the Synthrapol and hairspray too which have helped but not completely. The label is not so much an issue as I can replace it, but the part I worry about is the surrounding fabric that it bled on to. I think I may just plan to cut my losses and remove it and replace it with a larger label to cover the affected fabric.
You all are great! Thanks!