The copyright problem is probably because he's selling unauthorized copies of Coach's photos and graphics and not the original media. Selling actual catalogs is ok but scanned photos is more of a gray area. Think of it as selling a legally-bought music cd or movie dvd on Ebay versus a home-made copy of the same media. The first is ok, the second definitely isn't.
Thanks for the explanation. By doing it this way, he is able to retain the originals and sell unlimited copies.