Canadian frozen desserts company CoolBrands International has said that it has been served with a complaint by Weight Watchers International alleging an “anticipatory breach” of a licence agreement between the two companies.

CoolBrands said it strongly disputes the claims made by Weight Watchers and believes that the allegations are “completely unfounded and without merit”. The company added that it will “vigorously” contest the matter in New York state court, where the complaint was filed.

CoolBrands currently has a licence to sell Weight Watchers Smart Ones frozen desserts but announced last week that it had failed to reach agreement with Weight Watchers over the extension of the licence pact, which expires at the end of September. The Canadian company said it has the right to continue marketing Smart Ones using the Weight Watchers name until September 2005.

However, Weight Watchers’ complaint claims CoolBrands will have only a limited right to use the brand name to sell off remaining inventory for one year, reported Reuters.