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A little late to the post. The short answer is ‘it depends’.
Trade marks and copyright are two different areas of IP law. Spotlight selling ‘Frozen’ fabric would (and, speaking very generally for information purposes here – not advice) let you make a set of sheets for personal use at home, but not necessarily let you make multiple sets of sheets to sell to other people.
A print on a fabric is unlikely to be a trade mark concern, but likely a copyright concern. The Australian Copyright Council (https://www.copyright.org.au/ACC/Home/ACC/Home.aspx?hkey=24823bbe-5416-41b0-b9b1-0f5f6672fc31) has a lot of fact sheets available about copyright.
Ultimately, if the logo on the fabric is artistic then whether it’s registered as a trade mark or not the issue is more likely to be that someone owns copyright in the logo as an artistic work, which may prevent others being able to use that artistic work on their own products or for commercial purposes etc. Each case is different in terms of what you can/cannot do but typically if you intend to use another person’s logo or art work for commercial purposes permission is normally required.
