INTEL has flexed its legal muscle to keep a tight rein on one of its trademarks.

In a case demonstrating how closely firms keep hold of all trademarks and copyrights they own, Intel lawyers were instructed to send a letter to FotoInside, an online photo processing firm based in Cambridge.

The name clashed with Intel Inside, the trademark used by Intel which illustrates the fact that it makes microprocessors used inside computers.

Intel has its European sales and marketing headquarters in Swin-don.

A letter sent by Intel's lawyers Howrey Simon Arnold and White to FotoInside said: "The inside format was coined by our client in 1991 when it began using the Intel Inside mark."

The letter demanded a name change and the picture company acceded to it, changing its name to Fotoinsight. However, the managing director Klaas Brumann said: "Our photo processing company has never had any intention or wish to be associated with Intel.

"It had never passed our mind that anybody seeing the Foto-Inside logo, advertising or website would associate it with the American chip maker."

The firm, which was registered in September 2003, provides photo processing and gift items such as digital photographs, posters, mugs, puzzles and shirts and operates in 21 European countries

The online photo service is expanding across Continental Europe, where the term "inside" is not part of the local language.

Mr Brumann said: "It has been difficult to assess the potential legal implications of Intel's claim across the 21 jurisdictions we are targeting.

"We found that for example French courts seem to grant a higher level of protection on the use of common English words than on French words.

"Therefore we preferred to change our name to FotoInsight Limited with immediate effect."

While the European Office For Harmonization In The Internal Market centralises the registration process for trademarks and designs it is local institutions in individual member countries that provide protection.

The differences in law and interpretation can have major implications for any British business trying to establish its name in other EU member countries.

Intel spokeswoman Jill Franklin said: "Intel sent a letter to FotoInside regarding Intel's trademark rights and settled the matter with the company.

"The Intel Inside brand is an extremely valued brand in the world.

"Over the years we have invested billions of dollars to create that value.

"Like any other asset we have an obligation to our shareholders to protect that asset.

"Unlike other intellectual property, trademark law requires a company like Intel to take proactive steps to protect its trademark or run the risk of losing its rights in the trademark."