The law is only potentially in their favor outside of the US.
I find the inconsistencies of the IP and copyright law to be fascinating and frustrating. Current US copyright ownership is life of the creator plus 75 years. Applying this logic to Leo and his death in 1991, all of his designs at Fender should still be exclusively Fender's until 2066. That said, we know that Gibson, Fender, and many others failed to file complete copy of the designs for instruments and components. It's safe to assume that the sale of Fender transferred ownership to CBS and then FMIC, so I don't know how that affects copyright, patents, and trademarks.
Given the lack of uniform international copyright laws, I'm not sure how well founded the Fender case is in and across Europe. All of this would be before factoring in how it would impact the manufacture of instruments for various European companies (and those in other countries) that outsource manufacturing to Japan, Korea, Indonesia, China, etc.
It's an ugly bit of business, especially the insane notion of recalling instruments and destroying them (the recalls and unsold inventory). I'm not a lawyer, but it seems that the least shitty option would be to request and/or sue for licensing royalties. Let them make and sell the guitars, instead of potentially ending people's livelihood and destroying useable instruments.
I'm a Fender/Fender-style fan, they are the instruments I'm most comfortable playing, but I won't be buying any new gear from them again if they continue pursuing this, or likely at all regardless. While it may be their legal right to pursue these claims, it is also my right to look elsewhere for gear needs/wants.