I highly doubt they have legal obligations to worry about to the colour and word 'red' and moreso the letter "v". Used in a sentence as such, "Red V for eternity" compared to if it was "Red V" on its own should suffice to have used without any problems. Anyhows, it would cost the club 5000 fold on what the scarfs cost to get the ball rolling to follow up any legalities to fight the so called injustice (according to some) should we dare use any of the figuritive terms of our club, eg saints, st george, red v, dragons, etc). Plus why would they want to railroad the proactive measures taken by their core diehard supporters of whom the majority are paid season ticket holders, and who also almost religiously buy a jersey and perhaps a scarf and/or other bits of Dragons paraphenalia each and every season?? Personally, i'd say they'd embrace it rather then kick up a stink. If managed properly with the right people inside the club, even just a courtesy tap on the shoulder saying, hey guys.. we are doing this and we are doing that to further strengthen and build our supporter base which in turn will benefit the team and the club with future higher ticketed member sales, etc..
I highly doubt there'd be anything to worry about whatsoever. More effort needs to be put into making it work and gaining a postitive out of the hard work thus far put in rather then procrastinating about things that may or may not happen. Put simply, you just dont know till you have a go.