This evening I received this in my inbox!!
Dear Ms. Russell,
Thank you for the higher resolution images, they were much clearer than what I saw earlier and it does not look like counterfeit fabric. I really sincerely appreciate you taking the effort to do this because this was the only point I was not certain of. While you may not believe it, counterfeit fabric from factories selling counterfeit apparel and other fabric goods are a problem and we try our best to take appropriate action when we see it. The fake material I see usually follows the patterns of popular styles at the time it was made, and after some time it becomes an older style than what is currently sold in stores. The fabric that you use from Spring Industries is about 4-5 years old and is different from what they have been selling recently. I doubt you will believe me, but I in good faith based my decision on reporting your auction because the image did not look like high quality licensed fabric that I have seen recently.
Ms. Russell, we have no interest in disrupting your business and I apologize that I did not receive many of your emails due to the spam filter. I assumed you were dealing with Etsy to file a proper counter notice since that was your concern in the last mail I received from you that you sent to Sarah at Etsy. If you are using licensed fabric, I suggest you use a clearer image and describe the item as licensed. Regardless, I wish this was handled with better communication which would have resolved this much faster and with less stress on your end.
I will write to Etsy to retract the claim immediately.