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Here is the FFR Press Release from PRNewswire.com:

Factory Five Racing Victorious as Shelby Loses Bid to Protect Shape of Cobras

Mark and David Smith of Factory Five Racing, Inc. with their successful replica. (PRNewsFoto)[TK]
BOSTON, MA USA 02/16/2002

BOSTON, Feb. 16 /PRNewswire/ -- The following release was issued today by
Factory Five Racing, Inc.:
The world's largest manufacturer of Cobra replicas, Factory Five Racing
reached an agreement with Ford Motor Company and Carroll Shelby in the two-
year long battle for the name and design of the legendary cars.
(Photo: http://www.newscom.com/cgi-bin/prnh/20020216/HSSA011 )

Factory Five Racing won the shape of the car, Shelby and Ford keep the
In conclusion to the case all sides agreed to a consent judgment that was
entered on Monday Feb 11, 2002. The specifics of the agreement are as
1. Shelby agrees to dismiss (with prejudice) all claims to the shape of
the car. By giving up claims to "Trade-dress". Shelby acknowledges
that the Look, Feel and Spirit of the cars made by Factory Five are
not his. The judgment with prejudice means that Shelby can never
again contest the rights of Factory Five to produce it's current
production car kits which Shelby asserted were replicas of the 1965
Cobra 427 SC and Daytona Coupe automobiles.
2. In return, Factory Five merely agreed to not use the contested marks.

Factory Five Racing principles Mark and David Smith agreed to not use the
Ford Cobra and related Shelby marks for the following reasons ...

First, Factory Five Racing was not using the marks.

Second, the Company felt that the marks Cobra and 427 SC had become so
generic over the years (with the proliferation of thousands of Cobra
replicas) that there was little specific value in using them.

Lastly, the Company felt that despite claims by Ford or Shelby, the words
are a small part of what has become an entire genre of American hot rods.
The versions and styles of Cobra replicas are similar to the phenomenon of
street rods that replicate 32 Ford roadsters.

The facts of the case were never ruled on as the consent judgment was
executed before the beginning of the trial. The agreement was consent by and
among the parties to resolve the case.
Minutes before opening arguments on Monday Feb. 11, Judge Zobel ordered
Ford, Carroll Shelby and Factory Five to mediate the differences in front of
Justice Mazzone of the first circuit.
The only matter ever adjudicated in the entire case was when Shelby lost a
bid to shut down Factory Five last October during a motion for a preliminary
injunction. The motion was dismissed outright and that losing verdict for
Shelby spoke to the lack of legal merit of Shelby case (injunctions are
typically granted when there is a likelihood of success and a party can show
Shelby had originally sought 10 million dollars in damages and wanted the
destruction of the tooling and molds used to build the Factory Five kits.
Shelby said previously, in an interview with Automobile magazine's David E.
Davis that he would also seek $10,000 per vehicle from owners of replicas.
Shelby's claims to registration, rights and ownership of the design of the
Cobra through the U.S. Trademark Office is simply false. Shelby has attempted
recently to register for the rights to the shape of the car, but the
application has not been approved and is being aggressively contested in
court. His agreement with FFR giving up his claims to the shape further
undermines any credible claim he can make to others regarding any supposed
trade dress rights. Most automotive enthusiasts readily admit that the
original Cobras were modified AC chassis.

"With respect to Shelby's claims that the FFR product is inferior to his
own current kit version of the Cobra ... Carroll has the right to believe
whatever he wants about our product but the fact is the overwhelming success
of the FFR kit means the marketplace has made up it's own mind ... "
David Smith
Factory Five Racing

"Despite the tempest in a teapot that Shelby excels at creating, the facts
are quite clear. This was a big win for our company, our customers and
obviously the industry of kit makers. Shelby's claims of victory are hollow
as we continue building what is now rightfully recognized as our own designs,
whether they are inspired by vintage cars or not. If this is indeed a win for
Shelby, I wish him many more similar victories in the future."
David Smith

The best summary of this two-year legal battle comes from Mark Smith who
said, "We used to make replicas ... Now all we make are originals."
Mark Smith
Owner FFR

There is still action pending against Superformance (another maker of
Cobra replicas) on the same issues.
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