Not just the written instructions, but the designs themselves are copyright protected, which means you cannot copy the disks (or whatever medium they were delivered on). However the designer's added restrictions are not enforceable. You can sell or give the original patterns to another person, as long as you don't make and keep copies, so the "original purchaser" part goes out the window. You can sell the items you make, as long as you're not in a mass marketing situation. I would not, however, choose to purchase any more patterns from this designer, since she has chosen to make up her own rules and expects you to follow them.