The legal issue is with those selling it for profit. The BBC have done themselves far more damage than good with this cease and desist.
It's not this woman's fault that people are making her patterns up and selling them on ebay. Go after them if you're so worried about the pissy bits of money that you wouldn't even be making because you DON'T SELL KNITTED MONSTERS FOR A LIVING. This is like making someone take down a recipe for Doctor Who cake.
It's grass roots fan promotion, which is the NUMBER ONE promotional tool that keeps this sort of programme afloat.
At least BBC are only idiots. Check out Warner /DC:
A guy at '
Say It Backwards', a comics blog, asked some respected comics artists to donate some original artwork so that he could auction them to raise some money to GIVE TO A CHILDREN'S CANCER CHARITY AFTER THEY HAD HELPED HIS NEPHEW.
Warner DC decided that this was wrong because they needed to PROTECT THEIR INTELLECTUAL PROPERTY (we're talking about SUPERMAN here - that guy who saves the world and does the right thing and is good and that) and have cancelled the auctions. The guy who runs the blog is being cool about it, giving them the benefit of the doubt and saying that a suit in the legal department may have acted heavy-handedly but Jesus Christ you have to think that copyright laws were invented to protect artists from losing income that they wouldn't get without that protection and were mainly put into place to protect artists from corporations. Those rights weren't fought for so that the BBC can tell Doctor Who fans not to put knitting patterns for monsters on the internet or screw over some children's charity for a few hundred dollars.
Jesus... and people wonder why fans lose patience with these companies.