Page last updated at 11:05 GMT, Friday, 24 April 2009 12:05 UK

Legal row on Krispy Kreme recipe

A doughnut mountain
Krispy Kreme is one of the world's largest doughnut chains

An Australian biscuit company has threatened legal action against US chain Krispy Kreme if does not stop selling its Iced Dough-Vo doughnut.

Arnott believes the product is almost identical to its own Iced Vo-Vo biscuit, and breaches trademarks registered in 1906.

Krispy Kreme has been given until the end of Friday to withdraw its doughnut, but has refused to comply.

The Iced Vo-Vo biscuit is much loved by many generations of Australians.

It is topped with pink fondant, strawberry jam and sprinkled with coconut.

Australian treats

Krispy Kreme's Iced Dough-Vo, part of the chain's limited edition of Australian-themed treats, is filled with raspberry jam and topped with pink icing and coconut.

But the head of the US chain's Australian arm, John McGuigan, remains indignant.

"I think people know the difference between a doughnut and a biscuit," he said.

"We did receive a request from lawyers representing Arnott's that we withdraw these [doughnuts] from the shelves in our stores because we were allegedly in breach of various trademarks.

"We've taken advice, and the advice is that's not the case," he added.

Arnott's is known around the world for its biscuits such as Tim Tams and Tiny Teddies.

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