Precious Moments Case.

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"The only thing necessary for the triumph of evil is for good men to do nothing"
Edmund Burke

Precious Moments vs La Infantil
1997, (D.P.R.) 971 F.Supp. 66

Here is the Precious Moments court decision in the First Federal District Court about the use of licensed fabrics!
We have the case in PDF format but it's from WestLaw and therefore we do not feel we can post it on the internet.
The First Circuit Court specifically rejected the copyright claim where La Infantil was being accused with unauthorized use of copyrighted fabric, saying that "bedding items manufactured with lawfully acquired, authentic fabric with copyrighted design were not infringing derivative works."
The Court also said "The copyright owner's right to distribute the work is limited by the "First Sale" doctrine, which permits the owner of a legally acquired lawfully made copy of a work to sell that particular copy without the consent of the copyright holder".
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Copyright Act 17 U.S.C. 5 | Digital Millenium Copyright Act 17 U.S.C. 12 | Lanham Act 15 U.S.C. 22