Lawyers representing California-based Saul Zaentz Company (SZC) have accused the pub of copyright infringement for operating under the name 'The Hobbit' as well as naming a number of their cocktails after characters from the popular series.
Stephen Fry, who will appear in the adaptation of The Hobbit, has since defended the pub owners after being made aware of a Facebook campaign set up to protect the pub.
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The actor tweeted: "Honestly, @savethehobbit, sometimes I'm ashamed of the business I'm in. What pointless, self-defeating bullying."
The campaign has since gained more than 14,000 followers.
Landlady of 'The Hobbit' Stella Roberts told BBC News: "We were absolutely stunned. It was completely unexpected - we never intended to infringe anyone's copyright.
"The pub has been called 'The Hobbit' for more than 20 years and it has never been a problem."
Roberts has been given until May to remove all references to the fantasy series or face expensive court action.
Watch The Hobbit trailer below: