When I'l buying fabric for my craft show...I generally will pay attention to this wording on the selvage...I have put back several very cute fabrics this year....BUT...I think some designers have taken this a bit far.
I purchased some Brown and White dotted fabric last week...and it also says "not for commercial use"...excuse me....these are standard little white circles on a solid brown fabric....no designs...nothing... No, I didn't see the wording before purchase, but wasn't looking for it on a basic material...it wasn't even a named designer.
I have cut this fabric up and used it, and I sold everything that I had with that fabric in it, this weekend...
I'm sorry, but, I call the line at trademarking something like that...and I will NOT honor the "not for Commercial use" on something that is a nomal, everyday pattern.