@PrimFun: "... right of first sale gives the user the right to do with it as they please. Even sell items made from it." Not 100% true - which judicial circuit you are in will determine the definition of whether or not the item being sold is an infringing derivative work. And that does not give the maker the authority to use any trademarks to market their item, and often specific attributions and disclaimers are required.
Sadly, judicial rulings and decisions on the issues of copyright and trademark infringement are all over the place.
If the fabric has restrictions on the selvedge, a maker cannot just ignore it, claim it is unenforceable and continue to benefit from using the fabric. It is a fairly standard contract law principle that if you accept the benefit of a transaction knowing it comes with restrictions, you are bound by the restrictions even if you never actually say that you agree to these restrictions.
While any maker should be able to use a licensed fabric to make any product they wish, as long as they follow the rules, a maker needs to be fully prepared to fight takedowns that are improper.
Plus copyright and trademark violations each have their own set of rules and supporting law.
