1. The Taggies people are continuing to enforce their patent.
2. The patent enforcement lawyers appear to be going after anyone who has any form of a ribbon loop on a blanket edge, whether it is one ribbon loop or several.
3. No one has taken up the task of challenging the patent.
If Etsy or Ebay receive notice from Taggie's lawyers that the product is a potential infringement, those companies will pull your listing. These companies have little resources to investigate the claims, so legitimate or not the listing will be pulled down. You will not be able to defend yourself. If you list an item in your own store or blog for sale, you will receive a letter directly.
To date, it would appear there is plenty of evidence that the patent can be challenged. Commenters claim they had these style of blankets as children or that they have bought a current home sewing pattern with this style. Patterns and instructions abound on the net as do product listings in various online stores. The Taggies people were the first to obtain a patent and therefore believe they own it despite the evidence that the idea has been around for decades. This only illustrates the problem with the current patent protection system. The system is just complex enough that ordinary people have no idea what patents are being sought and if they should be challenged. The patent bureaucrats and lawyers don't understand the manufacturing processes and how common a folded ribbon loop in a seam is. Who has the time and money to fix the problem? Taggies is expanding into Europe and South America, so despite calls for a boycott the company appears to be growing.
Another aggressive brand enforcement problem has to do with the word onesie. Onesie is a registered trademark brand owned by Gerber. You cannot use that particular word to describe an infant bodysuit or unitard unless it is an actual Gerber branded Onesie. Various acquaintances of mine and online shop owners are receiving threatening letters about their use of this word in their product descriptions. Gerber appears to be ramping up their enforcement of their trademark.
These companies have not technically done anything illegal. They have the right to apply for patent and trademark protection. That protection is only worth as much as they are willing to enforce it. So, IMO, let them
Baby and children's apparel products seem to have more patent and trademark protection than other sewn product categories. There are bibs, hand covers, sensory objects, diapers, and so much more that have patent protection. I haven't quite figured out why.