A manufacturer (Simba Toys) started legal action against Seven Towns in 2006. The legal action dragged on for 8 years, and in the end Seven Towns won and Simba Toys had to pay all legal costs for both sides (Exact opposite of what you said would happen). Simba Toys took it higher to the European Court of Justice and the Advocate General gave a non-binding opinion earlier this year that the shape was critical to the function, and the trademark was being used to protect intellectual property that should have been protected by a patent (it originally was, but the patent expired years ago). What's happened now is that the European Court of Justice has actually made a ruling that basically agrees with the opinion given back in May
Worth pointing out, as much as people don't like patents, if the patent hadn't expired, this case would likely have gone completely the other way.