Mooloo Meats owners Graeme and Sheree Hodges have been told to change the name of their business or face legal action.

A small town Waikato butchery has been forced to completely re-brand or face a legal battle against the Waikato Rugby Union over the use of the word Mooloo in their business name.

Proud Morrinsville and Waikato couple Graeme and Sheree Hodges said it was a dream come true when, in 2014, they returned to their hometown to start-up their own butchery business under the name Mooloo Meats.

But that dream was shattered last year when the Waikato Rugby Union (WRU) informed the Hodges that their business name would have to be changed because the reference to Mooloo is a trademark breach.

KATRINA TANIRAU/STUFF Graeme and Sheree Hodges have now started a Facebook competition to find a new name.

"It never crossed our minds when we were coming up with the name," Graeme said.

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"Morrinsville is a proud cow town and we are proud of our Morrinsville roots, the name was in no way in reference to Waikato Rugby, even though I have always been a big supporter."

Waikato Rugby Union chief executive Blair Foote discovered Mooloo Meats while he was driving through Morrinsville in July last year.

"I had never seen it before and thought it was strange that they were using the trademark," Foote said.

He approached the Hodges about a financial sponsorship deal to the tune of $5000 annually in exchange for a licence to use the trademark - But the Hodges weren't in a position to be able to offer the kind of sponsorship the WRU were after.

Instead they offered a counter deal to sponsor junior rugby with sausage sizzles and meat to the value of $300. But the WRU board said that wasn't an option and the Hodges were instead given six months to re-brand.

Foote spoke to WRU's patent attorneys and was advised to issue a letter to the Hodges explaining the trademark breach and to ask them to stop using the name.

In one final attempt to keep their name, the Hodges asked the WRU if the funds they had saved for a re-brand, about $2000, would be enough to keep the name.

The simple answer was no.

Foote said he had fielded a number of concerned calls from residents accusing him of being a bully.

"We (myself and the board) agonised over it, because we understand they are small business owners making a living for their family," he said.

"But at the end of the day they are the Waikato Rugby Union's trademarks and we have to protect them. These trademarks are synonymous with the Waikato Rugby Union."

Since 1954, the Waikato rugby team's mascot has been Mooloo the cow and supporters have been referred to as Mooloo Men. The word Mooloo has been trademarked since 1995 and the red, yellow and black colours have been worn by the provincial rugby team since 1928 and have also been trademarked since 1995.

A Waikato-based company that makes black, red and yellow letterboxes, have purchased a licence from the WRU to use the colours, along with other Waikato sports teams who use red, yellow and black.

Any not-for-profit or community organisations who do not make money from use of the trademarks are the exception, Foote said.

"This is in no way a one-off situation and the Hodges have not been singled out."

Graeme, a qualified butcher who has been in the industry for over 15 years, said they had put a lot of weight on them, but they weren't in a position to keep fighting.

Instead of appealing the decision and being bitter, the Hodges have found a way to get the community involved with their re-brand.

They are running a competition on Facebook and the person who comes up with the new name will receive $100 meat voucher.

To date they have received over 70 suggestions, some from as far away as Brisbane.

"We have built a reputation for ourselves under the name, and that was our main concern at the beginning that our loyal customers wouldn't know who we were," Graeme said.

"But we want to move on and leave this behind us. It was an honest mistake and I just want to cut meat and work to make a living to feed my kids."