Clive Sutton settles dispute over Cobra brand

author: FutureCar Staff    

Both AC Cars and London-based luxury car dealer Clive Sutton have reached a resolution in their branding dispute over the marketing of modern-classic Cobra sports cars. Acedes Holdings, the owner of the AC Cars brand, had accused Clive Sutton of trademark infringement and passing off for importing and selling the Shelby Cobra. In response, Clive Sutton, with the support of Carroll Shelby Licensing and Superperformance, defended the claim and counter-claimed that Acedes' designs for the shape of the Cobra sports car were invalidly registered in the UK.

The High Court has now dismissed Clive Sutton's counterclaim regarding the validity of Acedes' trade mark. However, the registered designs for the Cobra's shape have been revoked, and Acedes has withdrawn its claim for trademark infringement. As a result, Clive Sutton is now the only authorized importer of continuation and replica Shelby Cobra cars, which are made under license by Ford and Carroll Shelby Licensing.

AC Cars had argued that Clive Sutton should not have advertised the continuation models as Cobras. In response, Clive Sutton issued a counterclaim, alleging that AC Cars' trade mark for the AC Cobra name was invalid due to Ford's claimed prior rights and non-use by AC Cars.

The imported cars in question were recently manufactured in South Africa and then exported to the United States for engine fitting. They were registered there as kit cars in the year of the car they represented, which is legal in the US. However, UK rules require cars to be registered in the year of manufacture, as different rules apply for historic cars in terms of certification, VAT, and duty.

Clive Sutton highlights that AC Cars was not successful in its own legal challenge against the dealer. AC Cars had launched trade mark infringement and passing off proceedings, seeking an injunction to prevent Clive Sutton from using the Shelby Cobra brand. However, Clive Sutton successfully defended the claim, and Acedes withdrew it shortly before trial. Clive Sutton emphasizes that it will continue to use the Shelby Cobra brand under license from Ford and Carroll Shelby Licensing.

In parallel proceedings, the registered designs for the shape of the Cobra sports car were held to be invalidly registered and revoked. Clive Sutton confirms that it sought to have the AC Cobra trade mark removed from the trade marks register due to non-use, but this request was rejected by the judge Richard Hacon. AC Cars, established in 1901 and claiming to be Britain's oldest active vehicle manufacturer, unveiled the AC Cobra GT Roadster in April. The issue of AC Cars' pedigree also emerged in the proceedings, with Clive Sutton countering that Acedes Holdings failed to establish itself as the successor in title to AC Cars from the 1960s.

FutureCar Staff