According to Nanjing Automobile, it bought the rights to the MG trademarks and logos when it bought the assets of the firm from administrators.
It told High Court judge Sir William Blackburne that MG Sports and Racing Europe, based in Tenbury Wells, was using the famous octagonal logo and name on its MG X POWER supercar. Nanjing is now seeking an order to stop the company.
Iain Purvis QC, who is representing the company, told the judge that Nanjing “have made great strides” in reviving the MG brand in the UK, with the Longbridge plant manufacturing again and a major new car launch planned for next year.
He added that the British company admitted this was likely to cause confusion but claimed they are entitled to use the mark because they had bought the rights to it from liquidators of the MG Rover Group in 2007.