Today was suppose to be a relaxing day alone, just sewing. Instead, I've been reading legal sites trying to solve this question for us all. Believe me, sifting through legal babel is not easy. However, this statement from a Supreme Justice sums it up. The United States Supreme Court gives crafters the right to sell handmade fabric items according to the "first sale doctrine" upheld in the court ruling of Quality King Distributors, Inc. vs. L'Anzaresearch Int'l, Inc (98 F.3d 1109, reversed). Justice Stevens: "The whole point of the first sale doctrine is that once the copyright owner places a copyrighted item in the stream of commerce by selling it, he has exhausted his exclusive statutory right to control its distribution."
I don't think further research is necessary. Now, I'm headed to the sewing room.