Apple is tighening its grip on what names it will allow third party site to use as it targets UK website iPod essentials.

According to iPod Essentials, who are now in the process of changing its name to MP3 Essentials Legal action has been taken against them by Apple Computers citing trademark infringement. The company has requested that the iPod accessories supplier cease trading under its current name and hand over the domain to Apple.

iPod:Essentials has agreed to comply with Apple's requests but is concerned at the impact a costly rebranding will have on its profitability. Since its inception 18 months ago, it has spent half of its company wide marketing budget on promoting the iPod:Essentials brand and domain.

iPod:Essentials currently receives 2,000 unique visitors each day but this is expected to half when they cease trading under the current brand. It is also estimated that it will take a minimum six months in order for business to return to current levels.