Unless you are going into mass production or you are trying to sell them on campus and undercut the campus store, I do not think anyone will say anything. Joanns has paid the fees for the licensed fabric. You purchased the fabric and can make whatever you want out of it. Where a problem could arise is if you promoted them labeled them as official Ohio State merchandise. And, even if that happened (you have a huge sign saying 'OFFICIAL OHIO STATE MERCHANDISE FOR SALE') and it was reported, they simply confiscate the merchandise and order you to stop making them.