An Australian web entrepreneur says draconian legal threats from Google could force him to pour two years of work and tens of thousands of dollars down the drain.

Cameron Collie, from Brisbane, has spent several years working part-time with a mate on Groggle, a location-based alcohol price comparison website service allowing consumers to search for the cheapest price on liquor products in their area.

A screenshot from the Groggle site, which is currently in private beta.

After obtaining all of the relevant Groggle domain names for each country and registering the business, Collie applied to register Groggle as a trademark. His site was already in the beta test phase and Collie, 36, was planning a formal launch within weeks, as well as an accompanying iPhone app.

The trademark application was accepted by IP Australia but, with just days left for other companies to launch an objection, Google's lawyers sent Collie a cease and desist letter.