This is an interesting subject, but I think there is a lot of over-reaction going on here. We sell some licensed fabrics, and I'm sure some of the people who buy them are going to make articles to sell at craft fairs, holiday boutiques, etc.
There are statements on the fabric to the effect of "not for commercial use -- licensed fabrics."
My take on this, after researching it, is that I as a reseller can not knowingly sell this to someone who is operating a commercial enterprise involved in making these things. HOWEVER -- we don't sell into the wholesale market, we sell into the retail market. What a retail customer does with these fabrics is their business, as far as I'm concerned.
If anyone was buying these fabrics to manufacture goods on a large-scale basis, they'd be buying wholesale, from the same sources I buy them from. I think the warnings are actually placed there as a restraint against wholesalers and distributors selling goods into factories, and I think that's a legitimate purpose.
I've never heard of anyone being sued over selling a few items made with licensed fabric, at a craft fair or other such venue. Sure, a company with deep pockets like Disney might go after small vendors, but even they are way more concerned with counterfeit knockoffs of their licensed finished products coming out of China, etc...
I don't think you have anything to worry about if you're just making and selling a few items, as long as you stay away from Disney and a few other biggies like the NFL and other professional and college sports team stuff.
And as a matter of fact, the most that could happen is that, if someone wanted to push small vendors, they'd be seeking a cease and desist order on you, not having you arrested. Violating a copyright is a civil matter, not a criminal matter. Only when you are involved in product piracy, like counterfeiting an identical licensed product, does it become a criminal matter.