The company said the fragrance is only licensed for distribution as a free sample or gift with other Oscar de la Renta products, according to press reports.
Elizabeth Arden was selling the perfume under the trade name EA Fragrances at Wal-Mart stores late last year, said the company in the lawsuit filed in US District Court in Manhattan.
"Sale of such a product is inconsistent with the image and reputation of Oscar de la Renta and its licensed fragrance products" said the fashion house.
The company maintained that the unauthorized distribution of the product has been widespread and may involve other retailers.
Elizabeth Arden dominates mass market channel Elizabeth Arden acts as a distributor to the mass market channel for a number of big manufacturers including L'Oreal, LVMH and P&G.
In a recent webcast CEO Scott Beattie said that 25 per cent of the company's annual turnover is from the distribution of fragrance products to the non department store channel such as Target and Wall Mart stores.
He highlighted a number of brands that the company distribute including Oscar de la Renta, Tommy Hilfiger, the Ralph Lauren Polo fragrances and the Hugo Boss brand.
In addition the company own a number of fragrance brands including the Britney Spears collection, The Mariah Carey fragrances and the Alberta Ferretti designer collection.
The Liz Claiborne fragrance collection is a recent addition to the portfolio and the company hopes that moving from brand distributor to brand owner will help improve its bottom line.
Expansion planned for the Elizabeth Arden brand Beattie also noted that the Elizabeth Arden brand itself only brings in approximately $600m annually, about 25 per cent of the company's sales turnover.
The expansion of the brand, which according to Beattie is better known than the sales figures would suggest, is one of the company's aims in the next few years.
According to Beattie, the brand should be bringing in more than a billion dollars annually and be one of the top ten global brands in terms of size.