I think it's interesting that he keeps harping on the fact that CBS and Paramount are shutting him down because Axanar is too good/too professional/too high quality.
Benefit of the doubt let's say that's true. Seriously, let's just play devil's advocate and give in to that statement: let's assume that CBS and Paramount truly just don't like that Axanar is so good and of professional quality.
First, that's a perfectly valid and understandable reason to want to shut someone down. He even admits, and is correct when he says that, other fan productions would never be confused for the real thing-- implying that his would.
Right there, acknowledgement of "brand confusion" would support the plaintiff's argument and (I'd think) sway a judge to not only rule in CBS' favor, but come down hard on Axanar: because these acknowledgements suggest this wasn't an honest mistake, but premeditated. They prove he knew what he was doing, and indicate pretty strongly that he'd know they might object.
Because the one of the primary purposes of copyright law is to protect brand confusion and dilution.
Why does he think that will help him in court? Does he really think the judge is going to turn to him and say "well, you're right, and you know what, CBS? That's not fair. Screw established rule of law, i'm going to let this man make his movie because it's going to be awesome!"
He has a problem. He needs the fans on his side to try and do a deal with the studio if he is going to stand a chance of getting it made (he doesn't in my view, but anyway), and he also needs to keep them sweet during this whole affair so that he doesn't have hundreds of fans going after him for refunds at the same time he's facing the litigation. If he just goes to ground and makes the fans and doners feel abandoned then there's a much greater chance of that happening. He's also someone who clearly has a huge ego and is into self promotion - so I suspect that also comes into play.
Frankly, the fact that he is talking about a settlement with the studio speaks volumes about the advice that he has been given by his lawyers. As a litigator myself, I suspect he will have been advised that there may be a defence, but it is not a strong one and there isn't likely to be a high chance of success - therefore this is primarily about damage limitation. Avoiding full litigation, while at the same time trying to achieve some form liciencing or parameter set tolerance with CBS/Paramount.
The studio holds most of, if not all, the cards and really there is no incentive to do a deal, save for keeping some fans happy. So I wouldn't mind betting that if a deal is done, most,, if not all the IP will be stripped out of the project. But this would then create a scenario where Peters is unable to deliver on his crowdfund promise of Star Trek, which in turn will likely see him again facing complaints from donors (and thus another reason to keep as many on side as possible).
I think what Peters isn't being honest with the doners about is that his lawyers would almost certainly have advised him that even settling on the basis that he just shuts down the project and walks away would be more favourable then defending the action and then going on to lose. If they can say to CBS "we'll walk away if you claim no damages or costs". That's much better than being faced with damages, costs and
then having to face disgruntled doners. I hope he has not received such advice and is nonetheless stringing people on, but at the same time I hope that he has gotten such advice as if the litigation looks flimsy then such advice would be in his best interest.
I said right from the off that the litigation would cause him to halt production as soon as he took independent legal advice. It's what any sensible lawyer would advise. Sure enough that's what has now happen. Well, my next prediction is that he has already been advised that the chances of being successful aren't good and that he is already now in full blown firefighting mode, and trying to mitigate the fallout when it comes. Suffice it to say that if we are sitting here a year from now and there's still a Star Trek project called Axanar then the next time I am in court I will strip naked and slap my todger on the judge's bench.