There are no laws regarding use of or portraying of the American flag. If you google flag etiquette you will find several sites including usflag.org posting the guidelines for appropriately displaying the flag. When making a flag quilt remember that the flag should never touch the ground/floor, and that the flag should never have anything placed on top of it (pillows), also, the flag should never be used as decoration or worn as clothing. I recommend staying away from any pattern resembling a flag; just go with RWB colors. I did find one site that said flag etiquette was covered by "law" but they could not cite the law, only quote the guidelines. All the guidelines use the word "should", never "shall", "will", or "must". All I ask is Please be Courteous.