The lawsuit, filed by UK-based Diageo’s Canadian unit at the Federal Court of Canada, accuses Heaven Hill Distilleries of “diluting” Diageo’s trademark through its Admiral Nelson Spiced Rum.

Diageo, which also owns brands including Smirnoff, Baileys and Guinness, said the packaging on the Admiral Nelson rum was “blatantly confusing” to consumers in its use of an historical character and was an attempt to “mimic” the Captain Morgan brand.

The labels on both products show a man dressed in blue and red sailing clothes carrying a sword.

The Captain Morgan label shows the sailor with his foot on a barrel of rum while the Admiral Nelson design shows him holding a tankard of rum.

In a statement to WIPR, Diageo said Captain Morgan was the leading brand of rum in Canada, and that legal action had been taken to protect its goodwill and defend its trade dress, label and trademark.

Iain Chalmers, vice president of marketing at Diageo Canada, said the company appreciates “healthy competition” but was strongly opposed to competitors “copycatting the label design and character trademark” of established brands.

“We will fight these infringements wherever we can,” Chalmers said.

Heaven Hill was founded by the Shapira family in Bardstown, Kentucky. The company has not responded to requests to comment.

This is the second case in recent weeks involving Diageo, whose products are sold in more than 18 countries worldwide.

Last week, not-for-profit organisation the New York Explorers Club said it was taking action against Diageo over its Explorer Club, a whisky that is part of its Johnnie Walker range.