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This section contains the nature of the case and procedural background.

P is the world-famous designer and manufacturer of racing automobiles and upscale sports cars. P's Daytona Spyders currently sell for one to two million dollars. P has produced approximately 5000 Testarossas. The entire anticipated production is sold out for the next several years and the waiting period to purchase a Testarossa is approximately five years. A new Testarossa sells for approximately $230,000. D manufactures fiberglass kits that replicate the exterior features of Ferrari's Daytona Spyder and Testarossa automobiles. The copies are called the Miami Spyder and the Miami Coupe. The kit is a one-piece body shell molded from reinforced fiberglass that fits onto the undercarriage of another automobile. P sued D. The district court found, and it is not disputed, that the replicas are virtually identical in appearance to the original. P alleged trademark infringement, in violation of section 43(a) of the Lanham Act, and obtained a preliminary injunction. It was later amended to permit D to recommence production of the two models. D filed a voluntary petition for bankruptcy. The bankruptcy court lifted its automatic stay and permitted P to continue to prosecute this action. P got the verdict and a permanent injunction. D appealed.

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