green LA girl

October 27, 2006

Starbucks wonders why Ethiopia won’t do what Starbucks wants

Filed under: caffeine, fairtrade, starbucks challenge — Siel @ 11:27 am

[For those new to the Ethiopia coffee trademark issue, start here]

Good to see that Oxfam’s campaign to make Starbucks stop opposing Ethiopia’s plan to gain more control over its coffee trade is getting some attention! In fact, Starbucks has already been compelled to respond not just once, but TWICE!

One of the major issues Starbucks attempts to dispute, is Starbucks’ role in blocking Ethiopia’s trademark efforts. Sez Starbucks: “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.”

The Starbucks statement then goes into a long, somewhat off-the-mark rant about how Starbucks thinks that Ethiopians should forget about the trademark thing, and just do what Starbucks thinks it should do — namely by forming an agreement with the coffee behemoth and following its instructions.

Starbucks’ 2nd statement reiterates that Starbucks again tried to form an agreement with the Ethiopian government, portraying Ethiopia as the baddie for saying nah to Starbucks’ paternalizing and controlling efforts.

Oxfam pointed this out, telling the BBC that “the NCA and Starbucks should not dictate to Ethiopia how best to sell its products.”

And Oxfam responded more directly to Starbucks’ statements, pointing out that yes, Starbucks did indeed have a role in blocking Ethiopia’s efforts. Mostly, Starbucks worked through the National Coffee Association (NCA):

Starbucks did prompt the National Coffee Association (NCA), of which it is a leading member, to file an opposition to the applications, which is the reason the US Patent and Trademark Office (USPTO) gave for rejecting them. At a meeting held this past July at the Ethiopian Embassy, Embassy staff and advisers met with the NCA president to discuss a letter of protest filed against Ethiopia’s trademark applications. Ethiopian Embassy staff asked the NCA President what had prompted the NCA to file the opposition after more than year of silence on the issue. The NCA President responded that Starbucks had just brought it to the NCA’s attention.

It is therefore disingenuous for Starbucks to claim they were not responsible for the application being blocked. Ethiopian Embassy staff and Ron Layton of Light Years IP, a Washington DC-based intellectual property rights organization that is helping to advise the Ethiopian government, have gone on record with this.

Starbucks has also claimed that its investment in social development projects and micro-finance initiatives in coffee growing regions has been recognized for its leadership within the industry.

While Starbucks has taken some positive initial strides in this area, Oxfam thinks the company can do better. As a company that prides itself in such efforts, it is unclear why Starbucks would oppose Ethiopia’s efforts to help its farmers realize a greater portion of the value their coffee commands on the international market.

Intellectual property ownership makes up a huge proportion of the total value of world trade but rich countries and businesses capture most of this. Ethiopia, the birthplace of coffee, and one of the poorest countries in the world, is trying to assert its rights and capture more value from its product. It should be helped, not hindered.

Oxfam continues to call on Starbucks to show leadership for other coffee companies by immediately recognizing Ethiopia’s rights in this case and signing the licensing agreement that Ethiopia presented to the company in September, recognizing the country’s rightful ownership of its coffee names.

Update, 11/19/06: A timeline of what’s been happening with the Ethiopian trademark effort.

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3 comments for Starbucks wonders why Ethiopia won’t do what Starbucks wants »

  1. I’d really urge you to take a second look and maybe talk to some of your coffee industry friends and find out what they think about this (frankly retarded) scheme oxfam is advocating for Ethiopia. Starbucks and the NCA are not the only ones to oppose the idea - it poorly addresses a problem that seems poorly grasped. The SCAA has also advised against it and everyone I’ve talked to in coffee sees it as counterproductive or just hairbrained snake oil. Support for the scheme strikes me as naive at best and at worst disingenuous and irresponsible.

    Appelations are not brand names and simply saying a coffee was grown in Sidamo (a mindbogglingly large geographic region exporting many millions of pounds of green coffee) does nothing to indicate or guarantee quality - nor can it. Should the state of Indiana trademark the name “Indiana” for its corn? Should I have to write a check to Gov. Schwarzenneger before I tell you the avocado I’m selling you was grown by a farmer in California?

    There is a lot that can be done and ought to be done to help Ethiopia’s coffee growers, but manufacturing some hollow vilification of Starbucks isn’t productive. Oxfam should put its energy into real on the ground work that is relevant to the struggles of farmers and resist the temptation to create an easy controversy that ultimately benefits nobody.

    Comment by t o n x — October 28, 2006 @ 3:29 am

  2. “Appelations are not brand names and simply saying a coffee was grown in Sidamo (a mindbogglingly large geographic region exporting many millions of pounds of green coffee) does nothing to indicate or guarantee quality - nor can it”
    …that’s kind of the point. The appellations give the Ethiopians no better bargaining position to get more money to their farmers than they had before. This isn’t an issue of telling people the coffee is from Sidamo, this is an issue about them owning and managing their own brands the same way that almost anyone anywhere (in the developed world) already does.
    And also, it’s not “Oxfam’s scheme”. It’s the Ethiopian’s prerogative to take whatever action they see as appropriate to protect their property. In this case, Oxfam is just giving them a helping hand to do things that are going to better their farmers and their country overall.

    Comment by DW — October 29, 2006 @ 9:02 pm

  3. boo.

    well i’m certainly glad to have more light shed on this topic.. (why did it take so long to break down???!)

    but it has left a bad taste in my mouth, and left me disappointed and saddened by it all…

    if starbucks really wanted to help educate the public on their position, they should have put out something like this article (”coffee that cares”) to break down what it was they were trying to say; now if they try to put out a counter argument, i’m gonna have to take it with a big ass grain of salt.

    darn.

    Comment by silver — February 1, 2007 @ 4:08 pm

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