Friday, October 27, 2006

 

Ethiopia, Starbucks Embroiled in Dispute

The Ethiopian government, Starbucks Corp. and a coffee industry association are embroiled in a spat over whether the coffee names Yirgacheffe, Sidamo and Harar belong to the African nation, or can be used by anyone without restrictions.

Ethiopia wants Starbucks to sign a voluntary licensing agreement saying the country owns the rights to the coffee names. Seattle-based Starbucks said Wednesday that it wants instead to work with the country to establish a geographic certification for the coffee bean names, much like is done with Washington apples or Kona coffee.

Ron Layton, president of Light Years IP, which is advising the Ethiopian government on the matter, said the African nation doesn't want to charge a flat fee as part of the licensing agreement.

But he said the long-term plan would be to establish the brand and then use that leverage to gradually boost the prices that companies like Starbucks pay for those coffees. Read the full article.





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