BurnTees said:
Personally, i'm fine removing it if they own the rights. however, i'll be upset if Karmaloop and Urban Outfitters is allowed to continue selling them while I can't.
Karmaloop and Urban Outfitters probably have lawyers that will fight or challenge those lawsuits (or they may be in the process of removing them from their stores)
Since you aren't selling the t-shirts yourself (using the third party cafepress fulfillment), you are kind of bound by the rules of CafePress.
CafePress (or any fulfillment) has to be a bit more strict than the actual laws because they don't have the funds to fight every lawsuit that might come from having millions of instantly created products. They can't be seen as profiting from intellectual property infringement.
If you wanted to print the merchandise on your own, you could probably still sell them for a while, but like dicktees, you'll probably get your own cease and desist that you would need to respond to and the lawsuits would go to you instead of the fulfillment company.