rumor control--has SAAC lost its use of Shelby name?

[computerworks]

...and...SAAC sues Shelby Licensing.

SHELBY AMERICAN AUTOMOBILE CLUB
PRESS RELEASE
JANUARY 31, 2008

When the Shelby American Automobile Club was started, back in 1975, Cobras and Shelby Mustangs were used performance cars and they were depreciating like every other used performance car. As the club gained members and momentum, enthusiasm for these cars grew. They became more desirable and their value increased accordingly. Since 1975, Cobra values have gone from $4,000 to $40,000 to $400,000 and higher. Shelby Mustangs escalated from $2,000 to $20,000 to $200,000.

SAAC took it upon itself to establish a registry—a continually evolving database of information on each and every Cobra and Shelby Mustang. The club’s Registrars recorded each car’s production details, chain of ownership, and individual history where possible. This established each car’s provenance and came to be used to separate the fakes and frauds–which were made possible by the high values of the genuine, legitimate cars. Those who discovered that they owned counterfeit Cobras or bogus Shelbys were not happy. Rather than accept their fate and pursue the individual who sold them the car, they challenged the club and its registrars, forcing them to prove that their cars were as the club had described them. Some cases actually got to court and in each such instance SAAC prevailed because it had, over the years, gathered the facts and separated them from the fictions that had grown up around some cars.

The registry grew to become one of SAAC’s most important functions, overshadowing the social aspect of the club. SAAC had nothing to gain, monetarily, from the value of individual cars, which rose or fell based on the information gathered by its registrars. But it did have something to lose: it’s reputation for honesty and accuracy that had been unblemished over the years. In fact, those with illegitimate cars often referred to SAAC’s Registrars as “the Untouchables” because of their reputation for honesty and integrity.

After 33 years of building a huge database of historical and owner information, the biggest threat to the club came out of the blue. It came from Carroll Shelby, himself. Like everyone else, Shelby watched the values of the cars skyrocket. He even reentered the picture as a manufacturer when the value of the cars increased beyond anyone’s wildest dreams. Seeing several loopholes in the history of some of these cars, and creating others himself, Shelby attempted to profit from them. But he was thwarted by a club whose independence and integrity could not be compromised— even by the originator of the original cars. So he moved to destroy the club through legal means as well as mounting a public relations war using half-truths, innuendo, slander and libel against the club’s directors who had served for 33 uninterrupted years and whose honesty and veracity has never been questioned during that time. He created a club of his own, and along with it, he started a registry of his own. One he could control every aspect of.

In order for Shelby’s new registry to be taken seriously he would have to eliminate SAAC’s registry or take it over. Only then could he control the history and provenance of all Cobras and Shelby Mustangs and personally profit from decisions as to which cars were deemed to be genuine, original or legitimate.

There was never a question of whether or not the club would defend itself from this attempted hostile takeover. When Carroll Shelby, through his licensing company and lawyers, demanded that the club turn over to him the work product of its registrars, SAAC prepared to defend itself and its registry. The club established a Legal Defense Fund and its members quickly realized that Shelby’s plan to enrich himself would be done at their expense. Loosening the definition of legitimate or original cars would greatly diminish the value and desirability of all cars. They stepped up and contributed money to assist the club in its David vs. Goliath battle. The outpouring of support continues to overwhelm us.

This is a fight we never sought, but now that we are engaged, we will see it through to its successful conclusion, using every ounce of toughness, resilience and steadfastness we can muster. We take the history of these cars too seriously and we believe so deeply in what we are doing that we will not walk away from protecting it—and the owners— from someone who has demonstrated that the history, legitimacy and provenance of these cars is secondary to the potential money he could accumulate if there was no independent club to maintain accurate and honest records of these unique cars.

In response to the letter Carroll Shelby Licensing sent to SAAC on November 14, 2007 advising us of the termination of its licensing agreement and including a list of inappropriate demands, SAAC has retained the prestigious Boston law firm of Partridge Snow & Hahn, LLP. They filed a complaint on our behalf (case # 1:08-VC-10131-LTS) on January 28, 2008 in the U.S. District Court in Massachusetts. We took this action preemptively on the advice of several prominent lawyers who were consulted. It was clear to all of them that Shelby would soon be unleashing his lawyers and pointing them in our direction. Rather than stand by and watch as they attempted to savage and tarnish the image and reputation of the club and its directors, we felt this was the most effective action we could take and it was ethically, morally and substantially correct for us to proceed in this manner.


Ken Eber, Rick Kopec, Howard Pardee
National Directors
Shelby American Automobile Club
PO Box 788
Sharon, CT 06069
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