The St Andrews Links Trust (SALT), which owns the famous Old Course, has served citations on St Andrews International Golf Club (SIGC), instructing them that they will be taken to Scotland's supreme civil court over references to the St Andrews name.
SIGC is developing an ambitious private golf course in Feddinch designed by former Open winner Tom Weiskopf.
However, after months of legal threats, it has been confirmed that SIGC and Feddinch Developments Ltd are being taken to the Court of Session.
SIGC said it was standing firm against what it regards as "unjust and quite ridiculous" demands by SALT.
A spokesman for SALT said: "We have taken legal advice and been advised that these two companies are committing the legal wrong of passing off."