Moore had posted the photo, which showed an American soldier carrying the blood-spattered body of a child in Iraq, on his michaelmoore.com Web site in an anti-administration demonstration.
Yon, who is a Special Forces vet, who posts regular dispatches from the front at michaelyon-online.com is careful about how his pictures are distributed and used.
He was livid with Moore for posting the picture and tried to contact him for seven months to discuss his unauthorized use of the poignant snap, but the director of "Fahrenheit 9/11" has failed to respond.
Now, the fed-up photojournalist has told his lawyer to file a lawsuit against Moore for copyright infringement.
The misappropriated photo shows US Army Maj. Mark Bieger cradling an Iraqi girl wounded by car-bomb shrapnel. She died a short time later.
"The implication on Moore's Web site was that our soldiers were somehow responsible for that kid being wounded," the New York Post quoted Yon's lawyer, John Mason, as saying.
"That is absolutely not true. She was the victim of an insurgent's car bomb," he said.
Yon added, "I've never sued anyone in my life. It looks like Mr. Moore might be the first." (ANI)