Jacob Fruitfield Foods has sent solicitors' letters to a number of retailers who have sourced products outside the Irish market.
A competitor of Jacob's owns the trade mark to sell and distribute biscuits, such as Fig Rolls and Cream Crackers, under the same name in Britain.
Retailers argue the competitor's biscuits, made by McVitie's, are cheaper.
The Independent retailers lobby group RGDATA has written to the Minister for Enterprise Trade and Employment Tánaiste Mary Coughlan on the issue.
In its letter RGDATA's Director General Tara Buckley says it ‘is incomprehensible that retailers who are anxious to source and supply cheaper branded imported goods are restricted by this type of threat from doing so.’
The lobby group argues the Irish retailers should be able to sell the products under legislation that allows the free movement of goods.
Michael Carey Executive Chairman of Jacob Fruitfield Foods told RTÉ News the British products are ‘passing off’ as his company's products if imported into the Irish market.
He said the Irish company would take legal action to defend its position.
Last year Jacob's successfully took legal action against a Donegal retailer on a similar issue.
A Donegal court ordered the removal of Jacobs' Fig Rolls and Cream Crackers from a store in Ballybofey.
In recent weeks a solicitor’s letter from William Fry told RGDATA ‘our client is simply protecting its investment by enforcing its intellectual property rights’.
Retailers point out there is a considerable price difference between the produce they can buy from Jacob Fruitfield and the biscuits they can buy from other wholesalers.