This is really a minefield, but copyright applies to the expression of ideas in a particular form. When a copyright lapses, as it certainly has on the newspaper article, then a new copyright may be generated if work goes into creating a new form of the work (ie, another "edition"). Hence many classic works, such as the Wizard of Oz, can now be taken and republished. The republished work is under copyright, but you can still use the original edition to make your own copy and sell it. The legal verdict would hinge on whether the xerox was a proper edition on which the new creator could claim copyright, but it seems like it would be a weak case.
As I understand it, utilitarian items such as clothing can't be copyrighted, for the reasons above and to keep people from claiming that they own all skirts, for example, and everyone needs to pay them every time they wear a skirt. Of course patterns *can* be copyrighted, and you can't reproduce and sell a pattern claiming that it's your own. I think not selling garments from the pattern is a stretch of copyright, myself; the seamstress puts quite a bit of work into the finished product, chooses fabrics, etc; I would not think that this is what copyright is designed to protect. Indeed, it seems to me you can knock off a pattern that you see and sell things from it (disclaimer: I am NOT a lawyer) -- see my point about a skirt, above (or the point about the drawstring bag. I mean, who can own a rectangle? Sure, you can draw a rectangle and colour it and put type on it and own the creation, which no one can copy (an artist's work would be an excellent example of this), but not a pattern. It seems to me that pattern-related things fall under patent law, and again you can't patent clothing (most of it -- I do not refer to scuba suits etc).
Again, not a lawyer....