NEW YORK, March 25 (Reuters) - LIV Golf has been sued by the New York distillery Long Island Vodka, which accused the Saudi Arabia-backed men's golf tour of "swamping" its brand, confusing consumers and depressing sales by selling LIV-branded alcohol and apparel that infringes its trademark.

Founded in 2007 in a horse barn on Long Island's North Fork, Long Island Vodka said it produces liqueurs, whiskeys and cocktails, as well as its flagship LíV vodka made from local potatoes, and sells its own branded t-shirts, hats and other clothing.

In a complaint filed on Monday, the Baiting Hollow, New York-based distillery accused LIV Golf of "blatant trademark infringement" through partnerships with businesses such as Treasury Wine Estates ( TSRYF ) and DAOU Vineyards, and promoting drinks such as LIV Clubhouse Cooler, LIV Transfusion Cocktail and LIV It Up Bloody Mary in ads and at tournaments.

"Distributors, retailers, hospitality partners, and consumers have already experienced actual confusion about whether the LíV brand has affiliated with LIV Golf," the complaint said. "Consumers' mistaken belief that LIV is in league with a highly controversial and heavily commercialized venture backed by an immense foreign sovereign wealth fund is antithetical to the authentic, pioneering, craft spirit LíV brand that LIV has worked hard to build."

LIV Golf did not immediately respond on Wednesday to requests for comment.

Long Island Vodka, also known as Long Island Spirits, filed its lawsuit in the Central Islip, New York federal court.

It seeks compensatory damages, punitive damages for willful infringement, and an injunction to stop LIV Golf from using "LIV" to sell alcohol and apparel. LIV Golf was founded in 2021 with financing from Saudi Arabia's sovereign wealth fund, and rivals the PGA Tour. Some critics view LIV Golf as a means for the Saudi monarchy to divert attention from its human rights record.

The tour has faced other legal challenges over trademark rights, including from Adidas and the owner of the LIV nightclub in Miami Beach, Florida.