The owners of a Mexican hotel using the name Hotel California on Wednesday said a trademark infringement lawsuit by the Eagles, whose song Hotel California is arguably the band's most famous, should be dismissed.

Hotel California Baja LLC, which runs the Todos Santos hotel in the Mexican state of Baja California Sur, said the band long ago waived its trademark rights, having waited four decades to assert them since releasing the song Hotel California on a 1976 album with the same name.

The owner said it "flatly denies" the Eagles' "baseless contention" that the 11-room hotel seeks to mislead travellers into thinking the property is associated with the band.

The band said the Canadian owners of the 11-room Todos Santos hotel in the Mexican state of Baja California Sur 'actively encourage' guests to believe the hotel is associated with the band. (Hotel California Todos Santos/Facebook)

"Any alleged use of plaintiff's trademarks is not likely to cause confusion, deception or mistake as to association, connection, sponsorship, endorsement, or approval of plaintiff," the owner said in a filing in Los Angeles federal court.

Lawyers for the Eagles were not immediately available for comment.

In their May 1 lawsuit, the Eagles said the defendant encourages guests to believe their hotel is associated with the band, including piping its music through a sound system, to sell T-shirts and other merchandise.

The hotel is located about 1,600 km south of San Diego and 77 km north of Cabo San Lucas.

It was named Hotel California at its 1950 opening, underwent some name changes, and later revived the original name after a Canadian couple, John and Debbie Stewart, bought it in 2001.

U.S. District Judge Gary Klausner scheduled a conference in the case for Aug. 21.

The album Hotel California, won the 1977 Grammy Award for record of the year.