Here's the story in the Guardian newspaper to save a little bias; http://www.theguardian.com/society/2015/may/19/northern-ireland-ashers-baking-company-guilty-discrimination-gay-marriage-cake

and here in the local paper; http://www.belfasttelegraph.co.uk/news/northern-ireland/ashers-bakery-lose-gay-cake-case-we-will-not-be-closing-down-we-have-not-done-anything-wrong-says-boss-31233797.html 

Basically this bakery was recently found guilty of discrimination as they turned down a request for a cake with an image of Sesame Street puppets Bert and Ernie below a motto supporting gay marriage 

But why was the copyright issue of using Bert and Ernie never mentionned or even used as the reason for not taking the order? ...I wonder whether, had they not disagreed with the motto, they would have printed it out without a second thought? I just find it so strange that it never came up....

I agree. I should think the Sesame Street holders of copyright and trademark would find this highly objectionable/illegal on a couple of grounds!

no easy answers but i think they will lose on appeal --

in other news --here's their copyright terms & conditions -- and i think they are off on this too -- the copyright thing just sounds like "the devil made me do it" type of defense that also will not hold in court in the u.s. anyhow --

"5. Copyright

You must not send us any images or any other material, or any content within such images, which contain any threatening, defamatory, blasphemous or pornographic material, or show any kind of child abuse, or are racially offensive or abusive of any religion, or likely to incite hatred against any person or group, or are otherwise criminal or offensive in the minds of reasonable people, or are obscene or menacing or harassing in any way, or breach any applicable law.
You must only send us images for which you own copyright (or which you are authorised to send to us by the copyright owner) and you warrant that none of the images contain anything which would infringe any copyright, trade mark, design right or other intellectual property right of any third party. We will not check the content of any images provided by you. However, if we believe any image does not comply with these terms we reserve the right to refuse to use it, without any obligation or liability to you. We will fully co-operate with any law enforcement authorities or court order requesting or directing us to disclose the identity or locate anyone sending any material in breach of this these terms.
Images sent to us remain under the existing copyright. By sending us an image you are granting us a licence to modify, print, or otherwise use the image in accordance with the details of your order. By placing an order and accepting these terms you are accepting any and all liability for any consequences of Ashers Baking Co Ltd using the images you supply.
For companies, organisations and cake decorators providing corporate logos or trademarked images: It is the customer's responsibility to ensure that any material supplied in any medium is not protected by any copyright law, or that any necessary permission for Ashers Baking Co to reproduce such images has been obtained.
We may photograph products that we provide to you, including those decorated with a logo or other artwork supplied by you. We may display these photographs on our website or other advertising media, unless specifically requested by you not to do so."

By placing an order and accepting these terms you are accepting any and all liability for any consequences of Ashers Baking Co Ltd using the images you supply.

this is 'the devil made me do it" part

in fact while i think this will not protect them from copyright infringement -- it is written in sucha way as to seem to cover them for doing the client's cake as ordered  -- 'the client accepts any consequences and liability' -- can't have it both ways --

very confusing