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'Rack space' is a generic term for allocated server space in a data farm. However, the company has taken exception to rivals using the term without the space between words, even though there are hundreds of instances of the term being used as a single, generic word on search engines.

In a letter seen by PC Pro that was sent to a company that wishes to remain anonymous, Rackspace threatens legal action if the rival doesn't

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sign an agreement to stop using the term within 10 days.

"It has come to our attention that you are using 'Rackspace' as a keyword in advertising your services with Google Adwords," the letter reads.

"Your use of RACKSPACE in this way amounts to identical use of our trade mark in the course of business, and in relation to identical services as those for which our trade mark is registered.

"Accordingly, we require that you immediately cease and desist from using our trade mark as a keyword or otherwise."

A representative for the company who received the warning said they believed the letter had been sent to several companies in the hosting industry, including household names.

A Rackspace spokesman told PC Pro the company "wasn't trying to be heavy handed." "Rackspace is a registered trade mark which we own, and they have certain legal protections," he said. "The reason we have a registered trade mark is to protect the name. We've spent a lot of time and money building the brand up."