The Michigan-based iPod Mechanic iPod repair company has found itself in the middle of an Apple instigated lawsuit for allegedly using the iPod name without authorization and for bilking Apple for replacement iPods and iPod repairs, according to AppleInsider.

Apple’s suit targets Nicholas Woodhams and claims he was not given permission to use the iPod trademark in his company name, and that he failed to follow through on an agreement to phase out the use of the name and his associated company URL by January 2007.

It also claims that he exploited the iPod shuffle Advance Replacement Program by filling out replacement forms in his customer’s names. According to Apple, Mr. Woodhams supplied a credit card number as required by the replacement program, and then declined the charges when he didn’t return damaged iPods when the replacements arrived.

Mr. Woodhams supposedly then sold the iPods he received through the Advance Replacement Program at a substantial discount. The suit claims his actions cost Apple over US$75,000.

He also is accused of swapping the backs off of out of warranty iPods with in-warranty units to get Apple to repair for free units that should have incurred repair charges.

Apple is seeking triple the damages in the case because it feels Mr. Woodhams’ actions were intentional and deliberate. The company also wants the court to force Mr. Woodhams to give up the iPod Mechanics domain name and all associated trade marks.

Apple’s standard policy prevents the company from commenting on pending litigation. Mr. Woodhams has not commented, and his Web site is still active.