AFAIK, the courts have so far sided with the purchasers/users of any such fabric. The copyright holder owns the right to the fabric design, and licenses that design to converters who may then produce items (such as yard goods) for sale. The designer, converter, etc. has no legal control over what you do with yard goods that you purchase, except that you may not reproduce those yard goods and offer them for sale yourself. Anything you make out of those yard goods? Yours to do with what you will.