Andre Engelhardt is planning to use the name to launch a range of products including perfume and women's underwear.
But his attempt is being fought by lawyers for the Diana, Princess of Wales Memorial Fund which is determined to control all rights to name and image, and wants to prevent them from being used for private gain.
Bras and knickers
Mr Engelhardt, 35, of Grosskarolinenfeld in Bavaria, plans to unveil his range of products on 1 July, which would have been Princess Diana's 38th birthday.
It will include bras and knickers with his Lady Di label and the slogan "The feeling of being all woman".
![[ image: width=150]](/olmedia/370000/images/_374108_dianalogo150.jpg)
There will also be two perfumes, called A Touch of Romance and Royal Esprit, which will bear the slogan "Royal but intimate".
But a spokeswoman for the memorial fund said its lawyers had lodged objections to Mr Engelhardt's various trademark applications.
The entrepreneur's patent attorney Christoph Kayser said Mr Engelhardt had applied to patent the Lady Di name as soon as Princess Diana died.
Palace objection
He had already secured the German trademark, and expected to have rights throughout the European Union approved in the next few months by the European Trademark Office in Alicante, Spain.
A further application which would cover the USA and Canada was also being processed, he said.
"There are no problems with the the application and there are no problems with prior rights because no one had registered that name before in Europe.
"The only objection has come in Britain but I do not think it will stop us getting the rights approved there as well."
A Buckingham Palace spokeswoman said it objected to Mr Engelhardt's trademark application but would leave any legal challenge to the official fund.
Diana fund foots legal bills
(25 May 99 | UK)
Diana secretary quits fund
(07 Feb 99 | UK)
Diana fund loses trademark battle
(04 Feb 99 | UK)
Landmine groups call for share of Diana cash
(12 Jan 99 | UK)
Diana, Princess of Wales Memorial Fund
BBC News Online: Diana - One Year On
British Monarchy: Diana, Princess of Wales
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