Normal
Let me put this in a different way, granted it's not an apples to apples comparison but you can probably see why some people (ie record labels) have issues with this. You create 100 tees/hats with the primary design being "[insert brand name]", you then go and give them away for free. You didn't make a profit, heck you actually took a loss, however is this legal to do? Are you giving [insert brand name] free advertising or are you cutting into their t-shirt/hat sales? Exactly, which means that record labels/artists have to figure out different ways to make money as things will never go back to how they once were.
Let me put this in a different way, granted it's not an apples to apples comparison but you can probably see why some people (ie record labels) have issues with this.
You create 100 tees/hats with the primary design being "[insert brand name]", you then go and give them away for free. You didn't make a profit, heck you actually took a loss, however is this legal to do? Are you giving [insert brand name] free advertising or are you cutting into their t-shirt/hat sales?
Exactly, which means that record labels/artists have to figure out different ways to make money as things will never go back to how they once were.