My understanding - and it is not an expert opinion - is that you are permitted to make and sell anything with this fabric. However you need to make it clear when selling that your item is not licensed or made by the copyright holder of the fabric. (For instance, if it were Mickey Mouse fabric, you would need to make it clear that it's not an official Disney item.) The other thing to be aware of is that even if you are "in the right" you can still be sued for copyright infringement. You should win, but it would be an expensive experience.