Oh, for cryin' out loud! How in the world did they even find out?

if you purchase ' licensed/ copyrighted/ for personal use only' fabrics you can make what ever you want with them...FOR PERSONAL USE...you can not sell, market, share, display the items without obtaining permission from the license holder FIRST. so of course you can make your kids/grandkids pj's- or doll clothes- or what ever- your daughter in law curtains...what ever---you just can not (profit) from the fabrics- or even publically display the items you made.

Of course you can buy the fabric, make the pajamas, and do whatever you want with them. But the original question was about copying an image of a character that someone else owns, not buying fabric with that image on it. Copying isn't allowed.

I believe this is permissable, as long as you purchased the copyrighted fabrics, and did not just make them up from your own appliqued or pieced design. That would be copying the images, which are protected from copying under the copyright. You may buy the fabrics, and make items from it for your own use, or to give as a gift. You can't make up a bunch and resell them at a public venue, though. The copyright holder is the only one who can display the images publicly. I think my understanding is correct, and hope I've explained it clearly. It can get confusing.