To help understand this better, I listened to the following podcast, Just Wanna Quilt, in which the hostess --Elizabeth Townsend Gard (a law professor and a quilter)--interviews a copyright lawyer, Cynthia Burstein Waldmen. Gard asks Walmen many of same questions we as quilters have on the subject.
https://www.justwannaquilt.com/podcast Look for Episode 207, I believe it is. (It's the most recent as of today's date.)