Cobra brand dispute resolved

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, supported by 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 However, the registered designs for the Cobra's shape have been revoked, and Acedes has withdrawn its claim for trademark infringement.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. Clive Sutton countered by 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 manufactured in South Africa, with the bodies exported to the United States for engine fitting before being registered there as kit cars. While this is legal in the US, UK rules require cars to be registered in the year of manufacture.

Clive Sutton highlights that AC Cars did not achieve victory in 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. However, Clive Sutton successfully defended the claim, with Acedes withdrawing it shortly before trial in June. Clive Sutton emphasizes that it will continue to use the Shelby Cobra brand under license from Ford and Carroll Shelby Licensing.

In separate proceedings, the registered designs for the shape of the Cobra sports car were found 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 was also raised in the proceedings, with Clive Sutton stating that Acedes Holdings failed to establish itself as the successor in title to the car manufacturer from the 1960s.

FutureCar Staff