Factory Five Racing, Inc. Notches Big Win Against Carroll Shelby's Automobile Coupe

WAREHAM, Mass., Feb. 18, 2010 -- Carroll Shelby has failed in his second attempt this decade to halt Factory Five Racing from manufacturing and selling kit cars which resemble vintage 1960's Shelby automobiles. In a ruling issued yesterday by the United States District Court for the District of Massachusetts, the Court dismissed Carroll Shelby's 2009 suit against Factory Five wherein Shelby alleged that Factory Five's Type 65 Coupe infringed on the trade dress (design trademark) of Shelby's Daytona Coupe® automobile. Shelby filed a similar suit against Factory Five in 2000 alleging trade dress violations of "designs that relate to the vintage 1960's automobiles created, designed and made by Carroll Shelby" including but not limited to the COBRA 427 S/C®. After almost two years of litigation, Factory Five and Shelby settled the earlier suit pursuant to which the Court dismissed Shelby's trade dress claims relative to Factory Five's kit Roadster and Type 65 Coupe which are similar to Shelby's COBRA 427 S/C® and Daytona Coupe®, respectively.

Despite Shelby's dismissal of the trade dress claims in the 2000 law suit, in December, 2009, Shelby attempted a second bite of the apple by filing suit against Factory Five, this time on his home turf in the federal court in Los Angeles. However, the change in venue was short-lived. Over Shelby's arduous objection, Factory Five was successful in having the suit transferred to the District of Massachusetts, the site of the earlier litigation. Shortly thereafter, Factory Five filed its Motion to Dismiss based, in part, on the Court's judgment in the prior law suit.

In a twenty-five page decision, U.S. District Judge Patti B. Saris held that Shelby was legally barred from seeking legal redress as to Factory Five's manufacturing and sale of the Coupe design where these claims have already been raised and adjudicated in the earlier suit. The Court's ruling dismisses all existing and future claims by Shelby against Factory Five related to the design of the Daytona Coupe®. The Court also dismissed several other federal and state claims by Shelby against Factory Five unrelated to the Daytona Coupe®. It is unknown at this time whether Shelby plans to appeal.

Factory Five's President, David Smith, was understandably pleased with the Court's decision. Smith stated that it has always been Factory Five's position that Shelby never had exclusive legal ownership to the shape of the Daytona Coupe® or the COBRA 427 S/C® for that matter. "In the 2000 lawsuit, Factory Five had ample evidence to prove that Shelby had no legal rights to the shape of the Daytona Coupe® and COBRA 427 S/C®," said Smith. Smith believes that Shelby and his lawyers were well aware of these facts, back in 2000, and opted to dismiss these trade dress claims with prejudice rather than try the issues on the merits. Smith notes that Pete Brock, not Shelby, designed the Daytona Coupe® and only six were constructed in the 1960's. These cars were used solely for racing and were never sold in commerce. Factory Five began manufacturing its Type 65 Coupe in 1999. Smith believes that Factory Five has manufactured and sold more kit cars based on the Daytona Coupe® then anyone else in the world, including Shelby.

Smith is cautiously optimistic that the Court's ruling will once and for all put an end to Shelby's legal wranglings against Factory Five as well as other kit car companies. Shelby's legal bullying has caused Factory Five to endure years of hardship and expend over $1 million in legal fees to defend against what many in the general public believed to be frivolous in nature. At this juncture, Factory Five is contemplating several options including seeking sanctions against Shelby, a man whose lasting legacy is rapidly changing from racing legend to prolific litigant.

  Factory Five Type 65 Coupe Facts:
  --  Factory Five Racing has built more than 500 Type 65 Coupe chassis kits
      since 1999.
  --  The FFR Type 65 Coupe holds the Class C, Blown Modified World Record
      at the Bonneville Salt Flats at 216.9 MPH.
  --  The FFR Type 65 Coupe was an official pace car for the Ford sponsored
      Champ Car Series in 2005 and 2006.
  --  The FFR Type 65 Coupe was tested by Car & Driver Magazine in November
      2000.
  --  The FFR Type 65 Coupe has completed the grueling 25 Hours of
      Thunderhill.
  --  The FFR Type 65 Coupe has been used by Ford Racing at shows and events
      for years.
  --  The FFR Type 65 Coupe has competed in the Car & Driver One Lap of
      America.
  --  The FFR Type 65 Coupe has earned Editor's Choice Award, Grassroots
      Motorsports Magazine.

For more information regarding this press release, visit www.factoryfive.com.