Where is the line?
That's the million dollar question in my mind.
If these modding groups had simply changed a few minor things in regards to the design of the cars, and called them Z1 mods, would this still be happening? How much would they need to change in order for them to circumvent any copyright?
I think that the only real way to tell the line is if it is decided in court. Using the F1 trademark or any of the other team trademarks, or sponsors trademarks is a definite no no. The paint schemes on all the cars is copyright as is apparently the design of the car. I think that rF2 and GSCE probably give you a good idea of what you can get away with. rF2 uses the term Formula Masters and GSCE uses things like Formula Extreme and Formula Retro. Team names and colour schemes are similar to the real life teams.
Also, wouldn't it make more sense if Ferrari or Lotus or Marussia were the ones making a stink? Does F1 actually "own" the copyright of a car that was made by any of those companies?
As I understand it, F1 has agreements with the teams on how that stuff works. Without knowing the details it's speculation. People were saying that Ferrari had a special deal that allowed them to license their car as they saw fit but Marussia has licensed their car to rF2 and Lotus I think to xbox so I don't know.
To me it's somewhat similar to something we've discussed before... made up track names. If SMS doesn't get the Nurburgring license, can they still put the track in the game if they call it Eifelwald?
Where is the line?
Ferrari Challenge didn't have licenses for a couple of tracks including Montreal. They instead published the game with the name Redwood Park. I would have thought that since the design of cars is copyrightable, that the design of a track would be as well. Maybe it's just too easy to make the track different enough by leaving out non essential stuff. For example, the FC Montreal doesn't have the casino. I don't know.
Also remember, what is legal and what companies allow can be different things. Companies may let things slide if they think that it gives them an advantage. They can also attack legal things if that gives them an advantage.