I'm an IP attorney and a lifelong guitarist and amateur luthier. I'll be shocked if Fender wins in any jurisdiction. I did not read their complaint, but the only legal argument they somewhat have is that they have the trademark on the stratocaster body shape. The problem is, they have allowed it to be diluted over time such that it is no longer a protectable mark for them. It's like any other well known brand, like tissues being called Kleenex, and so forth. Once it becomes genericizedor adopted by others without contest, you generally lose protection.

My bet is that Fender is doing this in the hopes that other parties will prefer to avoid litigation costs and will simply license the shape from Fender at a much lower cost. That way Fender starts to claw that mark back (basically impossible anyway), and they make a little money in the meantime. It's shitty, but that is my best guess.

Anyway, a strat is a great tool and shape is iconic and comfortable. I have three myself. But Fender's quality control is hot garbage these days. The only way I recommend buying a Fender is if you buy a used Mexican Fender guitar and retool it with new hardware and whatnot; sand down the neck, refinish with tru oil, get some locking tuners, a new bridge, file and polish the frets, put a new tusq but in, etc. They are great for learning how to build guitars. But never buy them new unless you really have some weird reason. I instead point people towards Sire on the cheaper end of the spectrum and Suhr, Collings, etc on the top end.