What are the copyright laws for fabric? and Can I sell what I make?

This has been a hot, and much argued question for as long as I've been sewing and selling on Ebay. About 10 years now.

I've heard it explained many ways by many different people and actually wonder if there is a definitive answer. I mean, if I purchase Disney fabric to make my custom decorated hand towels, where is the "property rights law" broken?

Doesn't Disney make the fabric to be purchased and sewn? and If there are inherent copyrights woven into the fabric, where are the copyright police when I'm sewing?

I certainly understand that I can't create an exact replica of a Disney product and sell it. Nor, could I make the exact fabric and sell it by the yard. I'm doing neither of those.

So I'm back to my original quandry. What is copyright infringement for fabric?

Searching the web, I find this information from...

The Amy Butler website says:
“You can make items for sale on a small scale, for example, from your home for a craft bazzar. If you are purchasing the fabrics at retail cost, you can use them to make a few items. You can not ‘produce’ items to sell in mass on a website or in a store, or for ‘wholesale’ – manufacturing items to sell to retail shops, catalogs, or websites.”

And more information from: "True Up" All fabric All the time

Till I learn something more explicit, I think this matter is settled for me.

What do you think?
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