Both AC Cars and London-based luxury car dealer Clive Sutton are claiming their victories following the end of a bitter branding dispute focused on the marketing of modern-classic Cobra sports cars.

Acedes Holdings, which has the AC Cars brand, famous for the AC Cobra, had alleged trademark infringment and passing off by Clive Sutton, which has been importing and selling the Shelby Cobra.

Clive Sutton, with the support of Carroll Shelby Licensing and Superperformance, defended the claim and counter-claimed that the Acedes-owned designs for the shape of the Cobra sports car had been invalidly registered in the UK.

The case has now ended with the High Court dismissing Clive Sutton's counterclaim over the validity of Acedes' trade mark, although the registered designs for the Cobra's shape have been revoked, while Acedes has withdrawn its claim for trademark infringement.

Clive Sutton is now the only authorised importer of continuation and replica Shelby Cobra cars. These are the only Cobra cars to be made under licence by Ford and Carroll Shelby Licensing.

AC Cars had argued that the dealer should not have advertised the continuation models Clive Sutton had imported in late 2021 and early 2022 as Cobras. Clive Sutton went on to issue a counter claim, alleging that AC Cars’ trade mark of the AC Cobra name had been made invalid due to Ford's claimed prior rights and non-use by AC Cars.

The imported cars at issue were recently manufactured in South Africa with the bodies exported to the United States for engine fitting before being registered there as kit cars in the year of the car that they represented - which is legal in that country.

UK rules however state that cars must be registered in the year of manufacture as different rules apply in terms of certification, VAT and duty for historic cars.

Clive Sutton has hit back, pointing out that in fact AC Cars was not victorious in its own legal challenge which in May 2022 saw Acedes Holdings and its licensee AC Cars launch trade mark infringement and passing off proceedings as a result of the dealer’s use of the Shelby Cobra brand.

As part of the claim, AC Cars sought an injunction preventing Clive Sutton from using the Shelby Cobra sign although Clive Sutton successfully defended the infringement and passing off claim, with Acedes withdrawing it shortly before trial in June.

The dealer points out that AC Cars retains the UK trade mark of AC Cobra name while Clive Sutton will continue to use the Shelby Cobra brand under licence from Ford and Carroll Shelby Licensing which supported the case.

Clive Sutton is now the only authorised importer of continuation and replica Shelby Cobra cars under licence from Ford and Carroll Shelby Licensing. “In parallel proceedings, the registered designs for the shape of the Cobra sports car were held to have been invalidly registered by Acedes Holdings’ group company and revoked,” it added.

The dealer confirms it sought to have the AC Cobra trade mark removed from the trade marks register due to non-use, although this was rejected in the final ruling by the judge Richard Hacon. “Following Acedes Holdings’ withdrawal of its claim for infringement and passing off, a complimentary counterclaim was warranted,” said Clive Sutton.

AC Cars, which claims to be Britain’s oldest active vehicle manufacturer since its establishment in 1901, unveiled the AC Cobra GT Roadster (pictured) in April. Even its pedigree emerged as an issue in the proceedings, according to Clive Sutton. “Acedes Holdings was required to establish that it was the successor in title to AC Cars – the car manufacturer from the 1960s,” it countered. “As a result of the withdrawal of its claim, it did not do so. For the avoidance of doubt, AC Cars (England) was incorporated in 2016.”