Yep. Brutal.

ETA: I reckon Fender will fold, because I think the second point is entirely possible. If CBS could have stopped Leo Fender selling S- and T-type body shapes entirely on the basis of what they owned, why did they only secure what amounts to a non-compete agreement?

The big risk for FMIC is in discovery on this point, I reckon. It will do a lot of harm to their reputation if it turns out they have been properly advised they have no claim and they've gone ahead anyway.