THE world’s biggest cosmetic company is threatening to sue a tiny Scottish soap-making firm, claiming they own the term “naked”.

L’Oreal issued the Naked Soap Company in Dalgety Bay, Fife, a “notice of threatened opposition” yesterday.

The Paris-based cosmetic giant, which has a market capitalisation of £88bn and whose “ambassadors” include Hollywood actress Eva Longoria, claim they own the right to the word “naked” in relation to cosmetics.

The notice, on behalf of “L’Oreal S.A states: “I confirm that I wish to file this notice of threatened opposition and that a copy should be sent to the Trade Mark applicant.”

Local business, Naked Soap Company, who produce handmade soaps and bath bombs from a small, single-storey unit, said they are hiring a lawyer and plan to fight until the end.

Sharing an image of the letter on their Facebook page, Naked Soap Company wrote: “Wow.

“Turns out Loreal are trying to stop us from using our own company name. This is one fight we are not going to give up on." Naked Soap launched a petition to demand the firm stops damaging local businesses backed by 300 signatures.

Rachel Wilkinson-Duffy, a lawyer handling L’Oreal’s claim, declined to comment.

Naked Soap's owner Gary-Lee Rushforth said the firm was worth £250,000 - one 352,000th of L’Oreal's worth. He said: "We chose Naked because it describes who we are - no nasties, no preservatives.

"It’s ridiculous. How do you trademark a single word? It’s like trademarking ‘happy’, you just can’t do that."