Johnson & Johnson, the healthcare company that uses the red cross symbol on its products, yesterday sued the American Red Cross, accusing the charity of illegally exploiting the iconic logo for profit.

The company claimed that the charity, which recently began lending its red cross logo to first-aid kits and supermarket items such as toothbrushes and combs, had violated a deal that it struck with the company more than 100 years ago.

Johnson & Johnson said that in 1895 the charity’s founder, Clara Barton, agreed to let it have “exclusive use” of the red cross symbol for its commercial products. It accused the Red Cross of violating the agreement by licensing the charity’s name and logo to rival businesses to sell items in outlets including Wal-Mart and Target.

But the president of the American Red Cross, Mark Everson, described Johnson & Johnson’s multimillion-dollar lawsuit as obscene. He said that the case had been brought “simply so that J & J can make more money”. The two had shared the symbol amicably for more than a century, with the health products company using it on its commercial items – such as Band-Aid and cough medicines – and the charity using the red cross logo for its nonprofit relief efforts worldwide.

Johnson & Johnson began using the red cross as a trademark in 1887. The American Red Cross was founded in 1881, but did not receive its congressional charter until 1900.

The company claims that the charity is not only in breach of its 1895 agreement with Johnson & Johnson, but that the congressional charter did not empower the Red Cross to engage in commercial activities competing with a private business. It claims the charter only allows the Red Cross to engage in not-for-profit relief work.

In 2004 the charity began licensing its symbol to sell products including emergency medical packs and “infant health and wellness kits” bearing the Red Cross logo.

“After more than a century of strong cooperation in the use of the red cross trademark . . . we were very disappointed to find that the American Red Cross started a campaign to license the trademark to several businesses for commercial purposes,” Johnson & Johnson said in a statement.

John Crisan, a Johnson & Johnson lawyer, told The Times that the company had tried to mediate the dispute but the charity had refused. “Very reluctantly we had to pursue this in the legal arena because we have to protect our trademark. Otherwise other companies will be coming in and using it.” Mr Crisan added that Johnson & Johnson had donated more than £2.5 million to the American Red Cross in the past three years, and would continue to make donations.

Carrie Martin, a Red Cross spokesperson, said that the charity made about $2 million from the products, and that all the money was invested back into the Red Cross mission.

“We are not taking this money and giving it to shareholders,” she said. She added: “These products are about keeping families safe.” Mr Everson said: “Our lawyers have looked at this . . . our position will be sustained in the courts.” The Red Cross is recovering from a series of controversies including complaints from donors about how some of its money is used in disaster zones.

Help wanted

— Clara Barton founded the American Red Cross in 1881.

— In the Second World War it enrolled more than 104,000 nurses for military service

— Almost half the blood and blood products used in America today are supplied by the American Red Cross

Source: American Red Cross

Times Recommends

• Please help: maimed children of war want their lives back
• Cabal seizes diamond riches to buy power
• White House gatecrashers got to the president