No one "owns" the legal rights to the logos or names. Check it out for yourself in the US Registry of Patents and Trademarks. All of the trademarks for Fat have expired. They are essentially public domain. Some of them, like BuckShaver or Wicked Lite, never really existed in the first place.
You can sell anything you want with the logos on them, really. Wendyl has remaining stock of old factory decal sheets and sells them to those who need them. It's not a business, she doesn't need to own the naming rights. Obviously, she would like to protect the integrety of the original brand, but considering the company has been defunct for over 5 years, it's tough to fight the branding fight for a company that will never exist again and makes no profits. Then again, I don't think anyone selling decals or shirts is out to retire on their income from the sales, and I also dont think anyone is out to ruin the name of our beloved Fat City Cycles.
I'm surprised the clothing on Cafe Press was taken down. They have just as much legitimate right to sell that stuff as Wendyl, Chris or anyone else at this point. Sometimes, an intimdating and threatening e-mail can make people do things before they know all of the facts. There is someone who sells the Yo logo every once in a while in black on eBay (they are repros, just like mine), and they sell for a ridiculous amount. They are perfectly legitimate to sell, even though the seller never mentions the fact that they aren't originals.
Frankly, it's a sad thing that the trade names have expired. It honestly means that there is no interest from Chris to ever restore the company.
doug