Clive Sutton's legal challenge over Cobra brand dismissed by High Court

author: FutureCar Staff    

AC Cars has emerged victorious in a branding dispute after a counter claim by luxury car dealership Clive Sutton was dismissed by a High Court judge. The dispute centered around AC Cars' rights to its UK-registered AC Cobra trade mark, with Clive Sutton challenging the British marque's claim. AC Cars argued that Clive Sutton should not have advertised imported imitation models as 1965 Cobras. In response, Clive Sutton claimed that AC Cars' trade mark of the AC Cobra name was invalid due to Ford's prior rights and non-use by AC Cars.

The cars in question were recently manufactured in South Africa, with the bodies exported to the United States for engine fitting and then registered as kit cars there. While this is legal in the US, 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 countered AC Cars' claims by highlighting that AC Cars did not win its own legal challenge. In May 2022, Acedes Holdings and AC Cars launched trade mark infringement and passing off proceedings against Clive Sutton for its use of the Shelby Cobra brand. AC Cars sought an injunction to prevent Clive Sutton from using the Shelby Cobra sign, but Clive Sutton successfully defended the claim, with Acedes withdrawing it shortly before trial in June. Clive Sutton clarified that it will continue to use the Shelby Cobra brand under license from Ford and Carroll Shelby Licensing, while AC Cars retains the UK trade mark for the AC Cobra name.

Clive Sutton is now the only authorized importer of continuation and replica Shelby Cobra cars under license from Ford and Carroll Shelby Licensing. The dealer also noted that in separate proceedings, the registered designs for the shape of the Cobra sports car were found to be invalidly registered and revoked by Acedes Holdings' group company.

Clive Sutton confirmed that it had sought to have the AC Cobra trade mark removed from the trade marks register due to non-use, but this request was rejected by Judge Richard Hacon in the final ruling. Clive Sutton stated that following the withdrawal of Acedes Holdings' claim, a counterclaim was warranted. AC Cars, established in 1901 and claiming to be Britain's oldest active vehicle manufacturer, unveiled the AC Cobra GT Roadster in April. Clive Sutton argued that Acedes Holdings failed to establish itself as the successor in title to AC Cars from the 1960s.

FutureCar Staff