Early Bird Foods & Co, who are based in Brooklyn New York, have been accused of breaking the law with its "phonetic play on Daryl Hall and John Oates' well-known brand name".
The duo claim its granola Haulin' Oats, a nut-free cereal made from maple syrup and oats, infringes their trademark and have filed the case in Brooklyn federal court.
The say the firm is trying "to trade off of the fame and notoriety associated with the artist's and plaintiff's well-known marks".
The case notes that various parties have tried "to make a connection between the artists' names and oats-related products" over the years.
Hall and Oates started in the early 70s, and their hits include Maneater, Rich Girl, Private Eyes, I Can't Go for That (No Can Do), Sara Smile and She's Gone.