I guess my question is... is the book actually infringing? The reason I ask is because Lion Brand's website leads me to believe they are giving permission to use it if you "run a business where Lion Brand yarn and patterns are used." My interpretation is it makes it a "grey area" because the listing shows and gives credit to Lion Brand.
As for the pictures, I'm not sure whether that is acceptable or not. Maybe if they are displayed in the book, it might be... If you were selling an old magazine or a crafting book you bought, are you allowed to show those inserts? I'm not a lawyer by any stretch of the means, but I guess this situation could be argued if someone was skilled enough.
Personally, I think it's stupid to pay that much when you can go and create your own for $1.50 for each pattern... that's what I would do. People should research more or find forums like this to ask questions. At eBay, the seller only gets paid what the buyer is willing to pay. If the price were pushed up by shilling, then yes, that is definately wrong... I just don't know about selling the created book. I guess it could be debated. Lion Brand probably figures it has been paid the amount they wanted... once the book is yours, I guess you can do what you want to with it... just don't copy it and distribute it because that is a clear-cut violation.
What do you guys think... am I wrong in the way I see it? I'm not saying I would do it... just that I see a loophole in getting around it.