The website design firm, based in the south Indian state of Kerala, has a site called dreamworkzweb.com, similar to Mr Spielberg's well-known production company DreamWorks.

Mr Spielberg's lawyers have asked the firm to give up its domain name in 15 days or face legal action.

They allege that the firm is trying to promote its business interests by using the trademark of DreamWorks illegally.

'Taking the mickey'

The Kerala company is allegedly standing firm. The group of engineering and software professionals are reportedly taken aback by the demands.

It says that the Hollywood director and his company were the last thing on their minds when they launched the site three months ago.

According to Robin Bynoe of city law firm Charles Russell, large US corporations are going too far in their determination to protect their brands.

"They are taking the mickey, hijacking our high streets, airwaves and now the internet. My sympathy is with the Indian company," he said.

The weight of the law may well be with Mr Spielberg.

The resolution of the dispute will depend on the breadth of the trademark he has registered for DreamWorks and the extent to which Indian legislation covers domain name disputes said Mr Bynoe.

A search on the registry of domain names shows that dreamworkzweb.com was registered on 12 June this year by a US domain name broker.