Australian entrepreneur Dick Smith has won a Federal Court appeal that will allow him to keep selling his Ozemite-branded yeast extract spread.

Last year, Intellectual Property Australia ruled that a South Australian company producing a similarly named product held the trademark, even though it had registered the name two years after Dick Smith Foods.

The Federal Court overturned that decision on Friday, awarding the Ozemite trademark to Dick Smith.

Mr Smith welcomed the decision, saying he was pleased to be able to continue to produce the product, which raises money for charity.

"We've spent over $500,000 on this court case, which is $500,000 less for the charity," he said.

"But now I think, we'll give $1 million away this year.

"Hopefully we'll be able to go on giving more away to important causes."

Mr Smith said he was now keen to take the fight to the US-owned Vegemite brand.

"I've been thinking of getting all Aussies to boycott Vegemite," he said.