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31 October 2006

Starbucks’ Response to Ethiopia Trademark

category: Blogroll

From an updated Starbucks press release:

26 Oct 2006: At Starbucks, we support the recognition of the source of our coffees and have a deep appreciation for the farmers that grow them. Starbucks has never filed an opposition to the Ethiopian government’s trademark application, nor claimed ownership to any regional names used to describe the origin of our coffees.

According to the National Coffee Association of America, which represents the major coffee roasters in the United States, the trademark application is not based upon sound economic advice and that the proposal as it stands would hurt Ethiopian coffee farmers economically.

On Oct. 25, Starbucks sent a letter to representatives of the Ethiopian government, offering to enter into an agreement with the Ethiopian government that would support and assist the government in developing and implementing a certification program.

Starbucks supports the development of geographic certification programs. A country can accomplish identification as the origin of certain goods through certification from trademark offices (such as is done with Washington apples, Kona coffee, Florida orange juice, and Idaho potatoes). Or, countries of origin can be used as part of an appellation system (i.e., a geographical term used to identify where grapes were grown for wine).

These systems are far more effective than registering trademarks for geographically descriptive terms, which is actually contrary to general trademark law and custom. A trademark identifies the manufacturer of a product while a certification mark informs consumers a product bearing the mark meets certain standards (e.g., geographic origin and quality) set by the certifying organization owning the mark.

As part of the proposed Agreement, Starbucks (and all other coffee companies) would be able to use Ethiopian regional name only to describe accurately, as Starbucks does now, the origin of their coffees. Specifically for Starbucks, we would use the regional name only in connection with coffee that meets our quality standards.

Starbucks names our coffees to honor the country of origin and to demonstrate how high quality Arabica coffees are grown. This helps provide insight into coffee growing regions and celebrates coffee origins with coffee drinkers around the world. We would continue to use regional names to educate consumers about and promote the Ethiopian regions where coffee we offer is grown.

Along with coffee industry associations, Starbucks hopes to partner with industry experts and origin representatives through the process of properly attaining and enforcing certification marks or appellation designations so that coffee farmers are able to reap the benefits of identifying their origin countries.

We are proud of the longstanding relationships that we have with coffee farmers in more than 27 countries. In fact between 2002 and 2006 Starbucks increased its Ethiopian coffee purchases by more than 400 percent.

Starbucks is committed to paying premium prices for all our coffee. This is part of our integrated approach to coffee sourcing which includes C.A.F.E. Practices, (Coffee And Farmer Equity Practices), a set of socially responsible coffee buying guidelines.

Specifically in fiscal 2005, Starbucks paid an average price of US $1.28 per pound, which was 23 percent above the average New York “C� price during the same time period, for all of its coffees. Our approach to coffee purchasing, investment in social development projects and microfinance initiatives in coffee growing regions, has been recognized for its leadership within the industry.

Visit detailed information about Starbucks position regarding its relationship with Ethiopian coffee farmers and Ethiopia’s proposal to trademark specialty coffee names.

Posted by beanybabe at 11:12 AM PST

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