This. Is. Big. Our beloved Mollie Johanson of Wild Olive is now licensing her embroidery designs for commercial use!!! Go to her blog post for details.
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Woot! And her designs are so adorable!!!!!!
This is unnecessary. When you buy a hand embroidery pattern you can legally sell the finished product.
Source: http://www.tabberone.com/Trademarks/CopyrightLaw/EmbroideryDesigns.shtml
Kate, you may want to do some additional research. The article you cited points out that if you buy an object, such as a dish towel or pillowcase, on which an embroidery design has been stamped or screen-printed, you may do what you want with that object, including reselling it before or after you embroider it. You cannot copy the design and embroider it on other objects without violating the designer’s copyright. A license grants you some rights to use a design multiple times. There’s lots of good information on the internet. You may want to do wider searches on design copyright and intellectual property.
Denise