A US restaurant chain is threatening to sue Wollongong band Ruby Tuesdays for using their name.

The four-piece band recently received a cease and desist letter from the lawyers of the US restaurant giant Ruby Tuesday, stating that they were taking legal action against the group and threatening a $2 million lawsuit.

"We provide you with this notice of infringement and demand that you promptly remove the Ruby Tuesday mark on your website, apparel, and social media and cease all use of RUBY TUESDAY," stated the letter from Mintz Levin lawyers based in San Diego, California.

"It constitutes wilful trademark infringement and cybersquatting.

"It is a blatant attempt to play off of Ruby Tuesday's registered and famous Ruby Tuesday trademark in order to promote an affiliation associated with that famous mark."

The band said that, like the food company, they took their name from the Rolling Stones song, although the local band's music is quite different to the group that inspired it.

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The legal letter represented a bumpy beginning for the new rock/punk band after only forming in late 2017.

"The company want the turnover and the destruction of all of our merchandise and money made from our merchandise and albums," guitarist Shaun Snider said.

"They want our domain name, us to change our name and pay their legal and other costs."

What was particularly baffling to the men was that far from being alone, the band was actually one of many bearing a variation on the name Ruby Tuesday.

"There's a whole other bunch of Ruby Tuesday bands out there, there's Ruby Tuesday beer, there's Ruby Tuesday belly dancing, jewellery," Mr Snider said.

The band won't give up the name

"We were scared at first, it's quite a threatening letter, like a science-fiction read," lead singer Paul Keys said.

"They are suing us for $2 million, which we have no chance of paying — but if we were to lose, it would be their legal fees also."

"It does seem funny because it's so far-fetched; it's so intangible."

The company claimed that using the name is a trademark infringement and that consumers might be confused between the two brands.

The band said that turning up to a live gig is very different to ordering a burger in a restaurant.

"This is a passion project so it's funny that we've been singled out," Mr Snider said.

The US company is worth almost a billion dollars.

The restaurants have been around since 1972 operating 540 outlets across America.

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Meanwhile the Wollongong band of friends have so far spent $13,000 making their dream become a reality — and are yet to make a profit.

"In our opinion there is no case here, we won't be changing our name," Paul Keys said.

"This has been a dream of mine personally since I was a child, I started singing five years ago and it was one of those things I thought I would always regret not doing in my life," Paul Keys said.

The four piece rock punk band formed in late 2017 after meeting through the Wollongong music scene. ( Supplied: Ruby Tuesdays )

Experts say copyright lawsuits are on the rise with online sales

Copyright expert Michael Handler, of the University of New South Wales Law faculty, said that copyright and trademark cases were increasing because of the grey area of marketing on the internet.

He said that Australian traders needs to be aware that trading online does open themselves to challenges under foreign laws and to always check if a trademark is registered elsewhere.

"This doesn't strike me as a very strong case," Professor Handler said.

"The difference between a band on the one hand and a restaurant on the other is pretty stark.

"It's hard to see how a consumer of the restaurant chain would be confused if they come across the band name.

"There's also the fact that both the band and the restaurant have taken their name from a Rolling Stones track."

Professor Handler said it can be daunting for small businesses to protect their legal rights.

"There's a big cost involved," he said.

"Often the tactic that is used by big owners of brands is to send a threatening letter in the hope that the other side will just fold, rebrand or just change it's name."

Professor Handler said if it were to go to court, there was a risk the band could lose, but that it would be hard to enforce.

"It gets quite difficult when a US company sues an Australian company, if the US company are successful in the US, they would then need to try to enforce that judgement in Australia to get any money — so there are very difficult logistical steps to take."

They hope the matter can be resolved peacefully with the US company and have sought legal advice.

"How about you buy our album and play it in your restaurants?" Paul Keys said.

"Please don't sue us and maybe we can work together."

The US Ruby Tuesday restaurant chain and the company's lawyers have been contacted for comment.