What Does the Starbucks Trademark Case in Russia Mean for Coffee?
The owner of Stars Coffee, the chain that bought Starbucks' Russian assets, has asked the Russian Intellectual Property Court to end legal protection for seven Starbucks trademarks registered between 2003 and 2014. The claim was filed on April 12 and covers graphic and word marks. It matters because losing those rights would clear the way for more Stars Coffee stores.
Starbucks suspended operations in Russia and left the market last year. Pinskiy&Co founder Anton Pinsky and rapper Timati then acquired the assets for roughly 500 million rubles, about 6 million US dollars, including equipment and premises but not trademarks or recipes. The rebranded chain kept a similar look, an American coffee brand style Russian consumers already knew, and trademark disputes had not slowed its business.
After Starbucks withdrew from the Russian market, the legal protection of its trademark in Russia may face termination. The owner of Stars Coffee, which acquired Starbucks' assets in Russia, has filed a claim with the court demanding the termination of protection for the Starbucks trademark. This move aims to reduce the risk of trademark infringement and pave the way for store expansion. This article will detail the background, progress, and possible impact of this event.
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Last year, Starbucks announced the suspension of its operations in Russia and withdrew from the market. Subsequently, Anton Pinsky, founder of the well-known Russian catering company Pinskiy&Co, teamed up with rapper Timati to acquire Starbucks' assets in Russia for approximately 500 million rubles (about 6 million US dollars), including equipment and premises, but not involving trademarks and recipes.
After the acquisition was completed, Timati publicly solicited names and logo designs for the coffee chain on social media, hoping the new brand could maintain a style similar to the previous one to reduce consumers' unfamiliarity.
The final makeover result was indeed highly similar: "Starbucks" was renamed "Stars Coffee," and the mermaid in the original iconic green logo was replaced with a girl wearing the traditional Russian headdress kokoshnik, full of Russian flavor.
After a series of renovations, Stars Coffee reopened to welcome customers. Although some netizens questioned that its high similarity might constitute infringement, Russian consumers preferred the coffee shop to continue the previous products and experience. Therefore, although trademark disputes had existed, they did not affect the store's business.
However, recently, according to a report by the Russian International News Agency on the 17th, the successor owner of the Starbucks chain demanded that the court terminate the legal protection of the American company's trademark.
The report said that after cooperating to acquire Starbucks' assets in Russia, the owner of Stars Coffee filed a claim with the Russian Intellectual Property Court on April 12, demanding that the court terminate the protection of the Starbucks trademark, involving 7 Starbucks trademarks, including graphic and text elements registered in Russia from 2003 to 2014. At the same time, the plaintiff requested the court to terminate the protection of trademarks related to two categories of services, including restaurants, cafes, cafeterias, and snack bars.
The reason for this claim is that although Starbucks withdrew from the Russian market in 2022 and sold its assets, according to Russian court filings, the exclusive right to the Starbucks trademark in Russia has been extended until 2033.
Since the outbreak of the Russia-Ukraine conflict, Russian courts have not reissued new legal provisions or detailed rules on trademark enforcement and the criteria for judging trademark similarity and similarity of goods and services in trademark examination, which makes Stars Coffee, which acquired Starbucks and highly imitates its trademark, feel tricky.
Previously, the owner of Stars Coffee stated that after reopening, the number of stores would be expanded. But to achieve widespread presence, the trademark currently used by Stars Coffee, as well as the graphics and text that may need to be registered in the future, may pose a risk of infringing Starbucks, and even face high compensation.
Therefore, before implementing the expansion plan, the owner of Stars Coffee first filed a claim to reduce trademark risks and take preventive measures.
Image source: Internet
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