In our web store, we sell a lot of soft book panels and crib panels to crafters who then make them up to sell at craft fairs.
The copyright issue is a non-issue. Even though these panels are marked for individual consumption, the notices are to keep large-scale manufacturers from buying these fabrics at wholesale and making thousands of them. The individual crafter who buys the fabric at retail and sells the finished item is in no danger of being pursued on any legal issues.