Honestly, who is it hurting and what profit might it be eating into?
Here in Oxford a man who studied law at one of our famous Colleges was told not to use a particular name, as is the case with this pub it seems. What he did was to say simply 'Not the'...so the name of the pub might now read 'Not the' Hobbit. Just to qualify, the words 'Not the' might be positioned at an angle of about 20 degrees across the front of the 'H' of Hobbit and in the case of the particular person that I have in mind, he got away with it!
If nothing else Stella all of the POE members will now know about your pub, so that can't be bad can it?
Good luck Stella if you choose to try it on!