It has been my understanding also that the first sale doctrine holds true here. There are always people/firms/manufacturers that will try to push the law.
I find the case of Emily Cier interesting as the publisher of the book is taking on her battle, but the manufacturer who sent the fabric for her to use with the understanding there would be a book, has decided to "not get involved". Really, how is that? She would not have had that fabric without that manufacturer giving it to her. It seems to me that the battle should be between the designer and the manufacturer who released the designer's fabric for use. What Ms. Cier did was nothing more than use fabric as it is intended-- to make something out of it.
I also find it sad that a civil court would waste time and energy to try yet another case of the nature, when they are
fully booked on other things. But then, attorneys have bills to pay too, I guess.