Starbucks Loses Trademark Dispute Over Char Bucks Coffee

 


 


 


 


 


 


Starbucks Loses Trademark Dispute Over ‘Charbucks’ Coffee


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Starbucks Loses Trademark Dispute Over 'Charbucks' Coffee


Brand marking is a word, which combines branding and trademark. It further reflects a conviction that marketing and legal experts have a similar objective. The objective is simple and it involves the development of powerful, durable brand identities and captures them in various forms, which may include slogans, names and designs. Through such, consumers will find it easy to identify manufacturers or the providers of particular goods and services. As such, brands and company trademarks are important; hence, the emergence of trademark law, which aims at protecting companies against possible trademark conflicts. As per trademark law, a trademark is a nonfunctional, distinctive word, shape, symbol, phrase or some combination of the same, which helps consumers in differentiating products and their manufacturers (Wright, 2013). Similarly, because of many conflicts, in this context, there was implementation of The Lanham Act, which is a federal statute that further protects a registered trademark from potential use by other businesses without the holders’ consent. The case between Starbucks and Charbucks is an example of a conflict in the same, which saw to a court battle to establish whether there were any trademark violations (Stempel, 2013).


Well, the court ruled that there was no trademark violation. As such, Starbucks had to lose the trademark dispute over ‘Charbucks’ coffee as the two companies have distinguishable trademarks they use in commerce. Starbucks lacked evidence to prove ‘Charbucks’ coffee used the trademark to evoke Starbucks famous mark, and the number of consumers confusing the two companies and their products. While Starbucks had humble beginnings, the company has managed to grow over the years to hold a global position in the retail coffee industry. Throughout the years, the company has managed to build a strong brand. Competition has been stiff, but Starbucks, through strategic initiatives, has managed to survive. Having established many branches across the world, the company has achieved success both locally and internationally. A significant threat, however, is the emerging companies in the coffee industry. Considering that, it is hard to make it in such a competitive business, the emerging companies, for example, Black Dear somehow used the Starbucks trademark. Well, this has been a contentious issue, which saw to a court battle.  Black Bear also had humble beginnings. Jim and Annie Clark, is a couple, native Englanders who shared a passion for coffee business. After some years of research in the business, the couple opened the Black Bear Micro Roastery. This was in the year 1995 aiming at creating an exceptional methodology for roasting gourmet coffee beans using advanced technology (Melvin, 2011).


The company was located in New Hampshire and targeted coffee drinkers, mainly in the New England area. Importantly, the couple sold much of their assets and refinanced the mortgage, with an objective to generate extra cash, which could finance the business. At first, the start-up for Black Bear was slow. During the 1997 period, the prices of coffee beans had fluctuated. Undeterred, the couple held on, and managed to develop unique blends, mainly blends, which had catchy names such as “Country French,” “Kenya Safari” and “Mocha Java (Melvin, 2011).” Starbucks is a global leader in coffee retailing. The business has more than 8,700 stores in many countries around the world. Originally, Starbucks focused its business in the USA, and in particular, Seattle, Washington. Apart from operating retail stores, Starbucks is into the coffee business and the company supplies coffee to airlines, restaurants and supermarkets. Throughout, the company has conducted commercial activities by displaying its registered “Starbucks” marks on its goods and services. Notably, the Starbucks marks include the trademark “Starbucks” and it has held a U.S trademark registration singe the year 1985. Currently, the company has more than 60 trademark registrations across the world (Shannon, 2010).


On the other hand, Wolfe Borough Coffee Inc d/b/a Black Bear Micro Roastery is a family business. The business focuses on selling coffee products in Tuftonboro, N.H. Unlike Starbucks, Black Bear is a small business. Black Bear also sells its products through mail and internet orders. In the year 1997, Black Bear began selling a “dark roasted blend” of coffee, which it called “Charbucks Ble...