The free ISP Splash Net has had to suspend new applications only a day after its launch.
In a statement on Friday, company spokesman Trevor Isted said the company had inadvertently breached an international trademark copyright with its name.
"As an internet company we take intellectual property rights seriously and will suspend advertising and applications until the matter has been resolved," said Isted.
Splash Net was contacted on Thursday night via mail by the operators of splashnet.co.nz, which provides Internet solutions under the name SplashNet. The company, Stay In Front (Asia Pacific), stated it has a pending trademark application for the word "Splash Net"
The new ISP says all users who had signed up for the free service will still be able to dial in and surf the internet as well as access their Web mail.
"There should be no disruptions to the service for those customers we already have online and we apologise for any inconvenience this may cause potential customers" said Isted.