Wouldn't sale of FQ's have to be monitored by the LQS? Whose obligation is the notification on restricted usage?
And who benefits? Does a designer can earn a premium by restricting designs to a single manufacturer who in turn ensures that the fabric won't be seen in Walmart quilts or in craft fairs or on Etsy or eBay?
And what is the threshold for 'commercial'? Walmart likely commissions for purchase or purchases untold numbers of the same quilts from large-scale manufacturers who can get favorable licensing agreements from fabric manufacturers, or even the rights to reproduce the pattern in their own textile operation.
This is an interesting thread.