Quirky rooftop caravan park 'facing ruin' in legal battle with hotel giant

A rooftop caravan park in Melbourne is facing financial ruin as a result of legal action by hotel mega-chain Novotel.

"NOTEL" owner James Fry proudly claims his business is "not a hotel", instead offering guests unique accommodation: six 1970s Airstream Caravans on a car-park roof top in the CBD.

"We are based around having an experience-based accommodation that is different in every way shape and form to a hotel," he told A Current Affair.

But lawyers for French multi-national Novotel say the name "NOTEL" is "deceptively similar" to theirs, insisting there's a "real and tangible danger that the average Australian consumer seeing or hearing the competing marks may be confused or deceived."

In legal documents, seen by A Current Affair, it's also claimed the brands "cover the same or similar services."

Fry strongly rejects this assertion, telling A Current Affair: "Every opportunity to be different, we are different".

NOTEL was created three years ago and has been popular with tourists and locals alike.

The Trademark Office initially gave the name the green light, however, this was challenged by Novotel.

Fry claims he's already had to fork out tens of thousands of dollars in legal fees as a result of the action.

"We're a tiny little six-room caravan park in the CBD, up against a giant juggernaut of a corporation that have endless money to spend on this," he said.

Due to financial pressure, Fry has had to sack his legal team and will self-represent when the matter is heard in Canberra next month.

"If we lose this, we have to pay their costs as well," he said.

"I don't know how much that could be. A million dollars? Half a million? Who knows?"

Brand and retail expert Dee Madigan has slammed Novotel, labelling the legal action as an example of "brand bullying".

"I wouldn't get (the brands) confused, no-one would get them confused," she said.

"Every brand has got a right to protect itself, but Novotel means 'new hotel'. It's for people who like nice, clean, normal hotels. NOTEL literally means 'not a hotel'. These are caravans on top of a roof, so they're not going for the same target market."

A Current Affair reached out to Novotel for comment but they declined to provide a statement.