Many of our products are Licensed Character Fabrics. We DO NOT recommended they be used to make items for re-sale.
However, licensed fabric means the design was licensed by the rights owner to be manufactured. The license is between those two parties, not between the manufacturer and the fabric buyer. There is no license on the use of the fabric as long as the user insures that when selling these items it is very clear to any potential purchaser that the product is not an official licensed product but rather made from licensed fabric. We suggest you include a Disclaimer when sewing and advertising anything made in this way.
Bottom line: Don't copy any licensed fabric. You would violate intellectual property rights (including copyright and trademark). If you do use a licensed fabric (i.e. Disney) to make something and sell it, be sure you don't claim it to be a Disney product. It is a handmade product, which you made using licensed Disney fabric.
For more information about copyright, trademark, and intellectual property law, we strongly recommend you consult your attorney.