This has been a hot topic on many boards. The copyright does NOT extend to the actual use of the fabric. There is an occasional issue if you sell on places like Ebay because the designer of the fabric claims copyright infringement when they have no claim for it. Most have solved this problem by including in the description words to the effect "this item is made using licensed fabric. The finished product is NOT an official product of such and such." Look around, there are better descriptions of this if you are going online with your finished product.
Where it gets murky is if you do a product and show a clear image of it online. For instance, you enlarged a photo of Tinkerbell to show that it was made with Tinkerbell Disney fabric. Disney could get your item taken offline because you are using their copyrighted IMAGE. So, just make it an overall photo of your product.
Last edited by IAmCatOwned; 07-18-2012 at 02:52 PM.