BellaBoo

As long as you aren't mass marketing the items it's fine to use the fabric to make items. You can't reproduce the logo or design of the fabric but to use the purchased fabric is fine.

MissJMac

Licensee's way of protecting their fabrics from "wacky folks".
Don't think the residents of Sesame Street would be crazy about seeing Thongs, Jock Straps, or other suggestive articles of clothing with Big Bird plastered in inappropriate places.
For personal use means you can make them for yourself, but you can't "sully" their good name with your tacky taste LOL