3) Are Lone Wolf's understandings of TM law accurate? The answers to all three could be useful for Lone Wolf and other companies in the same position in future (not to mention Morrus and other forum hosts/operators reading!)
Yes, this answer would be useful, but impossible to obtain unless counsel decided to post in this forum. I don't see any, however, so all we have are "internet people." These people (myself included obviously) are incapable of providing fact on this, regardless of how well informed. Not only that, but these people should NOT provide advice on courses of action except to go hire legal counsel. I say this because fact (i.e. law) is always left in the hands of the court to decide.
So, yes I know a little bit about trademark (and patent) law, enough to make me dangerous so to speak. I have experience in the U.S. court system with it, enough to make me believe my statements that S'mon gave bad advice (from a U.S. perspective). I neither can, nor will, provide example court cases. On one hand, I can't divulge the ones I am/was involved in and on another hand, I don't follow case law nor do I care to research it. If I had to guess, however, I would say about 50% of the trademark case law out there probably pertains to and supports my previous point.
Regarding Morrus, though, and this forum, that entirely depends on where this forum is hosted. I'm guessing in the UK which
I think would make all U.S.-based trademark law comments irrelevant. U.S. trademark law doesn't apply to websites hosted outside the U.S., does it? See, now
this area is where I think S'mon's expertise lies, though as a non-attorney he still shouldn't provide legal advice.